Guernsey Press

Eight out of 10 said they would pay more to the States

More than 80% of responses to a public survey about how to reduce States costs suggested that the answer was to raise taxes, fees and charges.

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Sir Charles Frossard House. (33115612)

Policy & Resources Committee president Lyndon Trott revealed the figure on the latest Guernsey Press Politics Podcast, out today.

The survey, organised last year by the previous P&R before it was ousted by the States Assembly, generated about 1,800 ideas from nearly 650 respondents.

‘We sent out a call to tell us where you think the waste is and give us examples of how we should improve efficiencies,’ Deputy Trott said.

  • Listen to the full interview with Lyndon Trott on the latest Guernsey Press Politics Podcast

‘Over eight out of 10 of those submissions were about how to raise additional fees, charges and taxes. Not about cutting waste, but about how revenue should be increased.’

Deputy Trott claimed that the consultation exercise, which ran for three weeks last summer as part of an initiative to reduce costs by between £10m. and £16m. a year, showed there was now widespread public support for the States raising more income to fund public services.

‘I think that tells me that subconsciously most people realise that we don’t take enough in tax,’ he said.

‘We’ve had it surprisingly good for a long time. That’s the sort of comment that in the past I think would have raised criticism that I’m out of touch. Now, I don’t think I’m out of touch.’

As a percentage of the size of its economy, Guernsey collects the lowest amount of tax among the Crown Dependencies, and the previous P&R estimated that, without further intervention, States expenditure could exceed income by about £100m. a year within the next 15 years.

During 2023, deputies rejected numerous proposals to increase income by tens of millions of pounds a year, including a new goods and services tax, and putting up taxes on incomes and profits.

Healthcare costs in particular are spiralling as a result of the island’s ageing population and advances in complex and expensive medicine. Deputy Trott identified pre-school education as another area where there was demand for greater States investment.

‘If you want those things, and I understand why people do, it doesn’t come cheap,’ he said.

‘The cost of health in particular is a product of our own success. People live longer in Guernsey than in most other places. With that, of course, there’s a price tag.’

Before losing a vote of no confidence in December, the previous P&R said it would produce recommendations in early 2024 on reducing States costs, although it also admitted that there was a two-thirds risk of not achieving even the minimum target of £10m. a year.

The current P&R has not yet revealed a timetable for making recommendations on cost reductions, but it remains under a States direction to submit proposals by the end of 2024.