P&R expects quick economic bounce back from lockdown
A QUICK bounce back from business coming out of lockdown is expected.
Policy & Resources has published more details about Guernsey’s economic performance and public finances in 2020, saying a successful final quarter for most business sectors helped to improve on the position being forecast in November.
‘We should be really encouraged by how businesses bounced back in the second half of 2020, especially the final quarter,’ said treasury lead Deputy Mark Helyar.
‘That’s important as we now come out of our second lockdown. We’re confident we will see another quick and strong rally from businesses in a wide range of sectors and, if we do, 2021 can be an even better year overall.’
The General Revenue budget shows a provisional deficit, before capital spending of an estimated £27m., with reductions in tax contributions from most sectors of the economy across the year as a whole.
More than £50m. was paid out in business support measures.
Income tax receipts finished £20m. short of budget at £328m., while the combination of excise and import duties, property tax and document duty combined to be £10m. ahead of budget at £103m.
States committees spent £8m. more than was expected, according to the 2020 Budget, at £425m.
There was a deficit in the ports accounts of £11m.
The deficit in social security funds also grew by £33m., with contributions £8m. less than expected in 2020 but spending continuing as planned..
Figures show a large increase in tax receipts expected from those working in the public sector due to pay awards.
