The top four places at last year’s general election were all filled by deputies who now sit on the senior committee, but several members of the senior committee acknowledged yesterday that they would lose votes by fronting tax increases, including a new 3% consumption tax in a GST-plus package which also assists less affluent households, at a landmark States meeting which starts today.
They also released the results of a survey of public opinion, carried out by independent researchers earlier this year, which found that about half the island was opposed to GST-plus, while 30% was in favour and the remaining 20% was neutral.
On the eve of the States debate, P&R president Lindsay de Sausmarez urged States members to put aside popularity, back her committee’s package, which also includes more taxes on motoring and companies, and reductions in income tax and social security contributions, and finally deal with a deficit in public finances estimated to be tens of millions of pounds a year.
‘Deputies are not elected to protect their own popularity.
‘We are elected to listen, examine the evidence, and make decisions in the long-term interests of the whole community,’ she said.
‘When elected representatives are prepared to take decisions despite personal political risk, that is not a failure of democracy – that is how democracy delivers for its community.’
The survey results showed that the island’s increasing cost of living was now the public’s number one concern, and P&R has provided calculations which show its proposed reforms leaving less affluent households and average earners better off overall than they are today.
‘The proposals are a chance to stabilise our public finances, avoid the serious consequences of running them into the ground, and most importantly from my perspective make a direct and practical difference to people who are struggling with the high cost of living in our beautiful Bailiwick,’ said Deputy de Sausmarez.
The four members of P&R who also sat in the previous States Assembly voted against GST-plus – when a 5% rate was proposed – on every occasion it was proposed in the 2020-25 political term.
After topping the poll last year, they set up reviews into alternative revenue-raising measures, and they believe the adjustments they have made to the original GST-plus package make it more balanced and acceptable.
‘I care deeply for the Guernsey community and its future and I have not lightly taken a position that I know will make me unpopular with some of my fellow islanders,’ said P&R’s external relations lead Deputy Steve Falla.
‘As a politician, it is not my job to try and be popular. My job is to do what I truly believe is right for the island.
‘I am convinced that broadening our tax base and reducing the over-reliance on taxing individuals’ income is the best path to sustainability. My conscience will not allow me to support further delays, the depletion of our reserves and the likely need for much more severe measures than this package provides in just a few years’ time.’
The committee’s treasury lead, Charles Parkinson, who previously led a campaign to defer GST until the company tax system had been reviewed and reformed, insisted that electoral calculations had played no part in his position on the tax package.
‘Quite simply, this tax package will put money into the pockets of people on lower and middle incomes, helping to relieve the cost-of-living pressures that the island is experiencing,’ said Deputy Parkinson.
‘It does so largely at the expense of companies, employers and tourists, who will pick up 80% of the net cost of the package. The other 20% will fall on people in the top quartile of the income spectrum.’
P&R’s newest member, Andrew Niles, claimed that rejecting a consumption tax this week might seem easy but would plunge the island into tougher times in the future, as resources dwindled and borrowing costs increased.
‘I came into this Assembly to make decisions, not to avoid them, and this is one of the most important this island has faced in recent times. Yes, it costs political capital. I am spending it willingly because what we are building here is worth it,’ said Deputy Niles.
He believed the proposed tax package would allow investment in infrastructure, public services and housing and secure growth in the future.
‘Guernsey has always been an island that is brave and backs itself. That is what we are doing today,’ he said.
Deputy Niles was the only P&R member who did not sit in the previous Assembly and who clearly indicated at the general election that he was prepared to back GST.
Other members of the committee have rejected accusations that their tax package flies in the face of their re-election campaigns last year.
P&R’s vice-president, Yvonne Burford, tried to underline the point yesterday by referring to her 2025 election manifesto.
‘It stated: ‘Making efficiencies and savings in our public sector should be a continual process. Even with savings, we’ll still need to raise money for healthcare, infrastructure investment, and rebuilding our rainy-day fund, which are the three things driving the deficit. I’ll only back fair tax changes that protect or improve things for low and middle earners, who are already under pressure. Any system must have safeguards against future increases for these families, and the burden can’t just fall on individuals. We need to make sure any changes don’t hurt Guernsey’s competitiveness’. I believe the package we are presenting is consistent with those commitments,’ said Deputy Burford.