Scrutiny president Andy Sloan and his vice-president, Haley Camp, want to remove about £27m. from draft committees’ budgets proposed by Policy & Resources.
Their amendment, the most far-reaching of five submitted against the draft budget yesterday, also includes about £3m. less for internal services overseen by P&R and nearly £2.5m. less for Home Affairs, as well as taking approximately £10m. off the budget reserve which funds new projects and pay awards.
But it maintains above-inflation draft budgets which P&R has proposed for Education and formula-led spending on social security schemes.
Deputy Sloan was a recent guest on the Guernsey Press Politics Podcast
Deputy Sloan described the amendment as ‘not austerity, but realism’ in response to a draft budget which forecasts a cash deficit of £115m. and a structural deficit in public finances of nearly £80m. in 2026.
‘The intention is not to undermine essential services, but to signal a clear commitment to fiscal discipline and value for money at a time when public confidence in States spending is low,’ he said.
‘By adopting this amendment, the States would send a strong message that Guernsey’s government must live within its means, focus on delivery and demonstrate that efficiency and reform are more than slogans.’
If approved, the amendment would effectively reduce committees’ budgets in real terms next year, with inflation forecast to average about 3.3%.
Other amendments submitted yesterday include one from Aidan Matthews which seeks to scrap P&R’s bid to reduce tax relief on mortgage interest payments and keep the maximum interest that can be claimed tax-free at £3,500 a year.
The senior committee wants to resume the phased withdrawal of the tax relief and set £2,500 as the maximum level of interest which can be claimed free of tax in 2026.
Deputy Matthews has already won the argument once, when the previous Assembly agreed with his proposal to freeze the figure at £3,500 in 2025 and 2026, but P&R wants to scrap that previous agreement.
Deputy Matthews’ proposal would save a couple up to £400 in tax next year, but it would reduce States income by an estimated £600,000, rising to £3.5m. in 2029 and future years.
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