‘We will run very short of money for services’ - P&R president
Guernsey will run ‘very short of money’ as demands for increased expenditure outstrip expectations, Policy & Resources president Peter Ferbrache has warned.
Deputy Peter Ferbrache said the States will be faced with difficult decisions about funding public services if growth in the deficit is to be limited.
‘We appreciate there can be no putting off making difficult decisions and one of those, if not the most difficult, is the forthcoming tax review,’ he told the States yesterday. ‘The increase in taxation is not something any sensible politician ever welcomes.’
External expertise has been brought in to look at corporate tax options and the findings will be shared with States members later this month.
Listen: Chloe Presland and Simon De La Rue round up the first day of the States' September meeting
‘The committee recognises the significant inflation pressures and the not-yet-finished rise in interest rates, which makes this a very challenging time for so many. The need to adjust our tax bases will not go away, though, and we need to debate it seriously,’ he said.
He added that Guernsey is not yet facing crisis on the same levels as elsewhere, such as the UK, but deputies must ensure they are taking steps to prevent that.
Emergency uprating of income support is on the agenda for this States meeting in a bid to support those most in need.
Deputy Adrian Gabriel asked what solutions were on the table to support ‘squeezed’ middle income earners, to which Deputy Ferbrache said there were very few. ‘We are limited as to what we can do, but that doesn’t mean we ought to do nothing. We can’t alter interest rates ourselves, we can’t invest £100m. into our energy policy – we don’t have those resources.’
He asked again for ideas for how to help Guernsey’s middle earners, whom he described as aspirational and self-reliant, after not being ‘deluged’ when asking for suggestions previously.
He made a slight to Deputy Gabriel regarding his lead on the campaign to have less fake grass in the island because of the impact it has on biodiversity.
‘We could for example not waste time on deciding whether we should have pretend grass or actual grass. We should devote the energy that would otherwise be available to try and solve the real problems of Guernsey.’
