The Chamber of Commerce has warned that public debate has focused only on GST, and said deputies must not lose sight of the wider financial problem facing the Bailiwick.
It said meaningful reform of the tax system is needed to tackle the island’s structural deficit. But it said reforming revenue alone would not be enough and the States must also set out a credible plan to control and reduce spending.
Its position is based on its 2024 member survey, in which 79% of respondents recognised the significant gap between government income and spending, and 89% agreed the government needed a clear path to cutting costs.
The survey also found that 73% supported the Chamber executive’s backing of ‘Option 3’, the full tax reform package, as the most viable proposal on the table at the time.
While members’ views differed on individual tax measures, Chamber said there was strong agreement on the need to address the island’s finances and on financial discipline being part of the answer.
Last month, it joined four other groups, the Guernsey International Business Association, the Institute of Directors, the Association of Guernsey Charities and the Guernsey Building Trade Employers Association, in writing to all deputies ahead of the September sitting.
The letter did not back any of the policy options, but requested that States members reach a conclusive decision.
‘We do not underestimate the difficulty of reaching agreement on such a consequential matter and simply ask that the process now be brought to a clear conclusion,’ the letter said.
You need to be logged in to comment.