‘Caution needed in raising £10m. a year from motorists’ - Helyar

Deputies voted last month to reject numerous plans to raise substantially more revenue – including from a new goods and services tax and income tax – and instead agreed an intention for up to £10m. of cost savings and a smaller package of tax increases on the largest companies and motorists.

The details of these changes, including the date when they will be introduced, will need to go to the Assembly for further debate later this term, although some deputies have already asked for backing for projects which would rely on the new income streams.

‘We have revenue streams, but they are uncertain because the States will need to approve the measures,’ said Deputy Helyar, after the States adjourned debate on Policy & Resources’ draft 2024 Budget for two weeks. 'There is a lot of imposition on motorists, for example. I expect there will be a lot of public pushback on those.’

Guernsey Motor Trades Association president Robert Cornelius agreed.

‘It’s going to be incredibly difficult,’ he said.

Motoring already contributes tens of millions of pounds a year to States income, including more than £20m. from fuel duty, which is likely to come under increasing pressure as more drivers buy electric vehicles and do not require petrol or diesel.

‘If the States wants £20m. a year out of fuel for the foreseeable future, I don’t know where we’ll be in three or four years’ time. God knows where fuel duty is going to be by then,’ said Mr Cornelius.

He said the States had not yet started consultation with industry about raising another £10m. a year from motoring.

‘Generally, the States don’t consult enough, and not just from the perspective of the motor trade. No-one has done a proper 360-degree plan of what the motor trade in Guernsey will look like in 10 years.

‘Rather than thinking something looks good this year or next year, changes should be future-proofed.’