Deputies look to defer TRP rises for some office premises
TWO amendments to this year’s budget have been proposed which seek to defer rises in TRP for some office premises and bring back the personal income tax allowance for those aged 65 and over.
Both of the amendments are proposed by David De Lisle.
He has seconded another amendment, proposed by John Dyke, to the annual non-contributory benefits report.
Deputy De Lisle’s first amendment is seconded by Deputy Lester Queripel and wants Policy & Resources to implement an age-related standard rate income tax allowance.
If approved, this will take effect from 2022 and would see those aged 65 and over being allowed £2,175 in addition to the general allowance, currently £11,875.
This would increase each year based on the annual percentage increase recommended for personal allowance.
A decision of the States in 2016 approved the phasing out of the differential over the following four years and it has now reached zero.
‘The States are intent on taking benefits away from the elderly,’ said Deputy De Lisle. ‘This has to stop.’
The amendment notes that the estimated 2021 cost of reinstating the age-related allowance (£2,175) would be about £4m. a year.
In his second amendment, Deputy De Lisle, seconded by Deputy John Gollop, is calling on the Assembly to overturn a decision regarding TRP it made just over a year ago and defer the action it proposed by a year.
The States had agreed that over a period of five years, from 2020 to 2024, TRP rates for the general office and ancillary accommodation category – mostly properties used by professional services and related businesses – be gradually increased to match the tariffs for offices and ancillary accommodation used by regulated finance companies, legal services, accountants and non-regulated financial service businesses.
The budget is proposing an overall rise this year of £6.05 per unit in line with this resolution.
If approved, the amendment will defer the change by a year, meaning that this year’s increase will be limited to 30p.
‘This will reduce General Revenue income by £800,000 and increase the 2021 deficit and funding required from the General Revenue Account Reserve by £800,000,’ said Deputy De Lisle’s explanatory note.
Deputy Dyke is calling for members to reject a plan to increase the benefit limitation, which is part of the non-contributory benefit rates report from Employment and Social Security, which is asking the Assembly to approve a rise from £850 a week to £890.
A choice of two options is being given by Deputy Dyke – keeping the limitation at £850, or increasing it by only £20.
His amendment points out that increasing it to £890 will cost general revenue an additional £100,140, while £870 would cost an additional £53,743.
‘Given the financial position of the States, it seems difficult to justify another increase,’ said Deputy Dyke.
