Residents who are financially comfortable are nearly twice as likely to support GST-plus as those who are struggling, and support for the proposed tax is highest among those who say they are well-informed about local politics and knowledgeable about the state of public finances.
The island is split down the middle on its enthusiasm for paying more tax generally, with 42% saying they are unwilling and 41% saying they would be willing, if it helps maintain the current standard of public services.
The findings were presented following a survey of public opinion carried out for the States earlier this year by an independent firm, which spoke to hundreds of residents, ahead of the publication of Policy & Resources’ proposed tax package which deputies will start to debate when the Assembly meets today.
Some deputies have criticised P&R over its handling of the survey, which cost the States a five-figure sum, but the findings were provided to the Guernsey Press yesterday within hours of being requested for the first time.
‘Overall, there is an acceptance among residents that there is a significant deficit in public finances and there is a need to generate additional revenue,’ said the firm’s report based on the survey.
‘While half are willing to pay more tax, negative perceptions around inefficient management and usage of existing public funds dampens willingness among many.
‘Support for GST-plus is mainly driven by the additional revenue it will generate to help address the deficit. Residents who understand the support measures in place for those on lower incomes are also more likely to be in favour of the tax reform, reinforcing the need to address the dominating concern about the negative financial impact of GST-plus.’
The survey asked residents about the original GST-plus package which was approved late in the life of the previous Assembly.
P&R has since modified the package and is now proposing a smaller consumption tax – at 3% rather than 5% – with less expensive measures to assist poorer households, together with new taxes on motoring and some companies, to improve public finances by an estimated £40m. a year.
The firm behind the survey was asked to advise P&R on how best to communicate its proposed tax package, after the previous Assembly defeated the-then senior committee on three separate occasions when it asked for backing for GST-plus.
It recommended that Deputy Lindsay de Sausmarez and her committee should ‘focus on why GST-plus is the right tax, not on increasing the overall acceptance that more tax is needed’, and that its communication should ‘draw the attention away from GST and onto the plus’ element of the proposals.
It suggested that support for GST-plus could be boosted by busting myths about the impact of the tax and educating more people about the effect of tax reform on lower-income households.
The survey also asked about the island’s public services.
It found that 75% of residents were ‘very satisfied’ or ‘somewhat satisfied’ with health services and, once prompted, most agreed that funding might need to be increased in response to an ageing population.
Satisfaction was recorded at 70% for transport, 45% for education services and 25% for housing.
Increasing costs of living were found to be the biggest issue facing the population, with many residents feeling financially constrained and about half saying they rarely or never had enough money to afford luxuries.