Budget amendments include attempt to raise income tax
Another attempt to increase the rate of income tax is among the 14 amendments submitted so far to next week’s Budget debate in the States.
John Gollop seconded an amendment placed by Deputy Lyndon Trott last month, which sought to see income tax increased to 22% in 2024, with an option to go up to 23% in 2025 if States’ finances required it.
This time Deputy Gollop is putting an amendment that wants tax increased to 22% on taxable income over £80,000 from 1 January 2025.
In addition, if approved, the amendment calls on Policy & Resources to report back on what economic benefit there might be should the rate increase to 25%.
Deputy Gavin St Pier is placing two amendments that seek to place stricter controls on Policy & Resources’ spending and on the likelihood of incurring any future debts.
One of these wants to stop Policy & Resources using its delegated authority to approve spending on capital projects, such as Les Ozouets campus, unless it has taken a report to the Assembly to show that it is affordable.
He calls this a ‘belt and braces’ approach, to ensure that only items of major expenditure approved already under the Funding and Investment Plan are funded.
If approved, the amendment will mean that P&R could pass only minor capital expenditure relating to de-funded projects without States’ approval.
His second amendment wants to ensure that any future debt incurred by the States has a clear funding source identified to pay back both the interest and the debt itself.
This would apply only to debt taken on after 1 November this year and excludes the hospital modernisation project.
Tax on real property is the subject of four amendments, most of which look to reduce the increases being proposed in the Budget, but also to influence plans to charge increased rates on unoccupied private and commercial properties.
P&R said the committee is meeting later in the week to review the amendments submitted to the 2024 Budget and will comment further in due course.