Guernsey Press

‘P&R should be putting less in reserves, not raising TRP’

REDUCING personal tax allowances is the wrong way to balance out a bid to halt the rise in TRP, according to that amendment’s proposer.

Published
Deputy David De Lisle. (Picture by Peter Frankland, 23027391)

The States meets today to discuss the 2019 Budget and the 22 amendments that have been placed to it.

Policy & Resources, which prepared the Budget, has submitted 16 of its own counter proposals, which balance out all amendments which would see less revenue generated by reducing personal income tax allowances.

Deputy David De Lisle wants to rein in the proposed increase in domestic and land TRP from 10%, as requested by P&R, to 2.5%.

He said islanders were being taxed too much already and that the £1m. shortfall caused by his amendment should be covered by the Capital Reserve.

‘I don’t see that reducing tax allowances is the way [P&R president Deputy Gavin St Pier] should be going myself.

‘I think he should be looking at the £54m. he is pushing into the Capital Reserve, which is already stuffed with money that the States can’t spend. It is the people’s money, it doesn’t have to be taken from them.'

He said his amendment would provide homeowners with much-needed security.

‘It is an incredible hike and it will push people out of their inheritance and their large homes.’

An amendment by Deputies Peter Ferbrache and Jan Kuttelwascher will be the first debated this morning.

They want to freeze the duty on petrol, rather than having it increased by 3.1p a litre as proposed by P&R. This would lead to a loss of revenue of about £600,000.

Other amendments include a bid by Deputies Laurie Queripel and Emilie Yerby to ensure that bond money continues to be used only for States-owned entities, trading accounts and funds.

Deputy Yerby and Deputy Mark Dorey want the States to research a range of initiatives which could increase the taxpayers' contribution to international development to 0.2%, 0.3%, 0.5% or 0.7% of GDP.

P&R will look to address a political backlash to proposed changes to the civil service leadership structure which could save the States at least £10m. a year.

P&R employment lead Deputy Jonathan Le Tocq said that it had listened to concerns raised by deputies.

‘At the same time it is important to recognise that the chief executive’s plans for the fundamental redesign of the civil service are part of a much bigger ongoing reform programme, with the ultimate aim of improving the operational activities of government for the people it serves.

‘As States members it is sometimes easy to forget that the primary job of the civil service should be focusing on serving the public, not ourselves.

‘Having said that, some concern around the support committees will receive does exist and the committee is determined with this amendment to ensure a collaborative, co-operative approach is taken during the restructuring of the civil service senior leadership, recognising that committees do not have identical needs.’

Deputy Heidi Soulsby letter Page 17