Alderney ‘is living beyond its means’

Policy & Finance chairman Nigel Vooght announced that there was a £400,000 surplus in the year’s forecast, which meant there was no need for an increase in water rates or property tax.

‘Despite delivering this balanced budget, we must be conscious of the simple fact that Alderney is living beyond its means, as the cost of transferred services such as healthcare, education, the airport and emergency services exceed the taxes paid to the Bailiwick to help to pay for these,’ he told the States.

The historic 1948 Agreement, which clarifies Guernsey's responsibilities to Alderney, was set up between the island at a time when the island needed expertise and resources. At one time this fiscal union saw Alderney producing a surplus of revenue against the cost of the transferred services.

‘This is not the case today,’ said Mr Vooght.

‘We are grateful to Guernsey for these transferred services but we must be mindful that this is not a sustainable position, especially given the financial difficulties Guernsey faces.

‘Although we are a separate jurisdiction, we are in a fiscal union and partnership with Guernsey and must look for ways to grow our economy to generate new revenue streams.’

A refurbished runway and improved air connectivity were the immediate priorities, he added.

These would help make Alderney more attractive as a place to live and work, which would grow the

economy and attract investment.

Looking to the medium term, he said the goal would be to see new sustainable economic growth to create revenue streams.

While the financial news was good for this year, largely due to an increase in investment interest, and higher than anticipated returns from both document duty and property transfer duties, the predicted surplus for next year was a ‘break even’ of £29,000, with operational costs due to rise by £354,000.

‘While the budget demonstrates a responsible financial approach, it’s essential to remain vigilant about potential risks and uncertainties,’ he said.