Guernsey Press

ESS looks to salvage what it can from rejected Tax Review

EMPLOYMENT & Social Security will be looking at what it can save from proposed changes to social security, which had formed part of the unsuccessful plans for tax reform.

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Employment & Social Security president Deputy Peter Roffey. (Picture by Luke Le Prevost, 31854574)

With the failure of all the major revenue-raising proposals from Policy & Resources last month, plans to reform the social security system also fell by the wayside.

P&R president Deputy Peter Ferbrache has said that the committee will likely be coming up with a challenging Budget this year as it moves to address the issues in other ways, such as by limiting budget allocations to committees.

ESS president Peter Roffey said that the committee will now be looking closely at what it can salvage from the report, in the wake of the failure of the States to approve revenue-raising measures.

‘The principle is still correct but the affordability has clearly been compromised,’ he said.

‘But given the apparently universal support for these sort of reforms we would be foolish not to look at what can and can’t still be achieved.’

He said that was likely to take some months.

Until such time as changes are made, annual increases in social security contributions will continue.

A 0.1% rise in contributions from both employers and employees each year for 10 years was approved by the States in September 2021 and started in January 2022. Contributions from self- or non-employed rise by 0.2% per year.

But ESS was also charged to report back to the Assembly each year, in its annual report on contributory benefits and contribution rates, on whether to pursue or adjust the plan, so there is scope for changes to be made.