Pensioners to be hit by biggest Budget impact through TRP
HOMEOWNING pensioners will be the group worst hit by the 2020 Budget.
Policy & Resources has set out income proposals to raise an extra £3.8m. a year in total.
Domestic TRP will rise by 10% next year, if the States agrees, to take an extra £825,000 from homeowners.
A total of £1.45m. more will come from fuel, tobacco and alcohol, and £850,000 from a 5% hike in commercial TRP tariffs and a further £700,000 for changing the band in which financial, legal and accountancy companies are charged.
And there is an option in the report for property owners to be hit further.
The 2020 Budget looks to raise a total of £479m. in revenue.
The overall average impact of the budget measures on households is estimated at £36 a year, but the highest impact is for pensioner couples and single pensioners, averaging £115 and £66 a year.
‘This is because pensioner households are more likely than working age households to own a property that is large relative to their annual income. They also receive less benefit from the increase in personal income tax allowances,’ the Budget says.
Cigarettes and cigars duty will rise by 6.9%, and other tobacco products will go up by 9.4%.
This will raise an additional £200,000 to total £7.2m.
The budget suggests that e-cigarettes could also be targeted in future to discourage their use by anyone other than those trying to give up smoking.
A 5% alcohol duty rise will raise an additional £700,000 a year.
Motor fuel duty will increase by 2.2p per litre to 72.3p per litre.
This will be phased in, with 1.1p from today and 1.1p from January.
Some £20m. is collected in fuel duty.
2020 will see the final phase of introducing tiered domestic building TRP tariffs for properties with a rating between 200 and 499.
P&R has reviewed the impact of domestic TRP increases since 2016 and its new tiered structure with higher tariffs for larger structures before making its recommendations.
The States is being given the option to further hike commercial rates with a choice of what to do with the money, including funding more services.