‘Monitoring global events’ – P&R on Sunak cuts
GUERNSEY will continue to look closely at the impact of global events on the island, including on the cost of living, said Policy & Resources in the wake of UK Chancellor Rishi Sunak’s Spring Statement.
While Mr Sunak, pictured, announced what he called ‘the biggest net cut to personal taxes in over a quarter of a century’ P&R issued a statement pointing out that the island economy was different.
Among the changes Mr Sunak announced were a 1p reduction in the basic rate of income tax and a 5p reduction in fuel duty.
‘We’ve noted the Chancellor’s announcement which is in response to a range of impacts the UK is experiencing,’ said a P&R spokesman.
‘Our economy is very different, given our mix of industries and our size.’
Guernsey has ‘fewer fiscal levers it can pull on and a very different tax system which is more reliant on income-based taxes,’ said the committee.
But it was important that global events’ impacts on the community continued to be monitored.
‘We must also consider the challenges we face longer-term and make sure we are putting the right measures in place for future generations.’
The States is in the middle of a tax review consultation and P&R said it would continue to engage with the community before deciding what recommendations to take to the States.
