As it happened: Wednesday at the States

All done at the States for today. Deputies will be resume debate on Deputy St Pier’s amendment at 9.30am.

You will of course be able to read more on all of today’s events in our full coverage here at guernseypress.com and in Thursday’s paper.

We’ll be back with running updates tomorrow. Thanks for reading.

A very tight vote as Deputy Leadbeater’s amendment is rejected 21-18, with one member absent. If successful, it would have deffered a decision on most of P&R’s package, including GST.

Next up, amendment 55 from Deputy Gavin St Pier and Deputy Sally Rochester.

It is to agree a pathway which could see GST rise to 5% alongside additional reductions in income tax and social security contributions designed to limit or eliminate the impact of GST on less affluent households; and to agree various detailed tax-related initiatives which were included in Forward Guernsey's manifesto at the 2025 general election.

After a brief comfort break, members have now moved on to an amendment from Deputy Marc Leadbeater, seconded by Deputy Andy Cameron.

It would defer a decision on most of P&R’s package, including GST and related income tax and social security changes, and await more certainty about Pillar II company tax income and efforts to restrain public spending, and direct P&R to report back to the States with more information and revised proposals by October 2027.

Another heavy defeat for an income tax amendment.

Deputy Gollop’s move to raise it to 22% permanently loses 33-5, with one abstention.

Some housekeeping at the Royal Court.

A fresh move Policy & Resources to bring together seven separate amendments (31, 34, 44, 46, 51, 52 and 53) has been approved with plenty to spare.

We're now on to amendment 48 from Deputy John Gollop. He wants to remove GST from P&R’s package and instead raise income tax to 22% permanently.

States members have voted to keep debating until 6.30pm - but only just.

The Bailiff, Jessica Roland, said she’s pleased with the progress so far but her motion to sit late was only carried by 21-19.

Well, not much discussion in the end.

After debate was guillotined, Deputy Gabriel’s call for a temporary increase in income tax was soundly rejected by the States.

It lost 33-5.

Now, this could generate some debate...

Deputy Adrian Gabriel wants to remove GST from P&R’s package and instead raise income tax to 22% for 2027 and 2028 only and investigate raising the tax cap which limits the tax paid by some wealthy residents.

‘Members, I’ll ask you a simple question,’ says Deputy Gabriel, ‘if additional revenue is required, is it better to raise that money through a temporary and transparent increase in an existing tax or through the creation of an entirely new tax that needs new systems and staffing regime that many islanders neither want nor support.’

‘This is just about the worst kind of move we could be making today is to increase income tax,’ says Deputy Sasha Kazantseva-Miller in one of the early speeches.

Deputy Blin’s amendment, including a call to introduce a tax on insurance premiums, has been lost.

States members voted 27-13 against, and it’s on to the next one...

More than 100 people turned out this morning in another attempt to get their message across as deputies arrived ahead of debate.

Our reporters Lucy Rouget and Amy Hext spoke to some of the key voices from inside the States, and from the public. Watch here.

Proposed by Deputy Chris Blin and seconded by Deputy Garry Collins, it calls for another review of options for the States to raise additional review and direct P&R to return to the Assembly by March next year with proposals for a tax on insurance premiums together with alternatives to GST.

Deputy McKenna’s call for a tax referendum has been rejected by the States.

There were 10 votes for, 27 against, and three abstentions.

Debate has begun on amendment 57 from Deputy McKenna, seconded by Deputy Simon Vermeulen.

It calls for a referendum to be held with the question ‘Do you support the introduction of the tax reform package proposed by P&R? Yes or no.’

Deputy Liam McKenna’s sursis has been defeated by 24 votes to 16.

On to the first amendment of the week... from Deputy McKenna.

Deputies have picked up where they left off before lunch, with Deputy McKenna’s suris.

There's been a successful ‘guillotine motion’ to stop debate so it’s straight to the summing up...

Which way will it go?

I thought that the podcast ‘round table’ we did with Policy & Resources and two of the most vocal opponents of GST was well worth doing. 

My take, for what it’s worth, was that nobody ‘won’ the debate moderated by Matt Fallaize, but P&R certainly didn’t lose it. I wonder if the same might happen this week, or next month, or whenever...

Well, members spent 50 minutes speaking on whether to limit speeches this week.

With that motion carried, we'll see how quickly they start to move through the pile of amendments this afternoon. Debate will resume on the sursis at 2pm.

He wants to defer the tax and spending debate until July 2028 at the earliest, take advice from the States’ yet-to-be-appointed new chief financial officer, and direct P&R to return to the Assembly with proposals which exclude GST.

The sursis is seconded by Deputy Simon Vermeulen.

States members have voted in favour of limiting speeches in the tax debate. They supported the motion by 26 to 13, with one abstention.

‘There is other business that needs to be addressed, it’s backing up, and the continued extension of this debate is impacting the bigger picture,’ says Deputy Tina Bury.

‘This is not something we should be rushing through because the clock is running out, it is something we should be getting right,’ says Deputy David Goy.

The motion proposes that speeches should be limited to five minutes for the proposer of an amendment to open and seven-and-a-half minutes to close. Other speakers would get five minutes.

First up, a move from the Forward Guernsey party to limit the length of speeches this week.

‘This motion aims to give members a realistic chance of working through the remaining debate in a reasonable timeframe,’ says Deputy Tom Rylatt in proposing.

Deputy Parkinson on the impact of the much-improved Pillar Two estimates:

‘I've been pretty consistent on my views on what Pillar Two would produce and I'm consistent on the point that ultimately, that doesn't take away our fiscal problems. It does help us in the short to medium term. It puts us in a better place than we were, and it gives us more freedom of manoeuvre.

But it doesn't change the fundamental point that in the end, we need to reform our tax system. And there are a number of issues with the current system, which are identified in the policy letter, and which we have sought to address. And the issue of dealing with those problems has not gone away. The tax reform is still the right path to take.’

Well this week’s meeting has started with a fairly important update from Deputy Charles Parkinson, P&R’s treasury lead, on Pillar Two company tax changes.

They were originally thought to be worth £10m. annually, were then expected to raise £40m. from the tax year 2025, but the latest estimate is not less than £73m., and potentially £93m.

But he also sounded a word of caution, that the early years of that income would likely be the ‘high water mark’ and that the fundamental problems that P&R’s tax proposals seek to address still remain.

Well that was quite swift. Dr Jo Le Noury has been elected as a jurat on the first round of voting. Congratulations to Dr Le Noury.

It means we’re on to the September States meeting…

Those opposing the introduction of GST haven’t taken the summer off.

A ‘petition rejecting GST’ was presented to deputies as they arrived at the Royal Court this morning. Organisers said more than 270 local businesses had also put their name to it.

Protestors were once again making their voices heard in St James Street this morning, heckling politicians as they entered the Royal Court for yet another tax debate.

There were fewer people than for the first part of this debate back in July, but the protestors’ perspective remains the same - no to GST and stop faffing about and make a decision.

It could be a little while before we get to the main event...

Before there’s any tax chat - or progress on anything on this month’s agenda, we first have a States of Election to contend with. A new jurat is being elected, to replace Stephen Jones, and there are three candidates: Carla Bauer, Joanne Le Noury, and Richard Ashplant.

It means it could be late morning before the States meeting itself gets under way.

There has been no shortage of debate and discussion as we gear up for this next stage of tax deliberations.

This week the CGI has come out in support of an income tax rise over GST, the Retail Group said its members are wary of the impact of GST and want a plan for growth, and Chamber just wants deputies to get on with it!

If you want a quick(ish) overview of this week’s meeting, check out our preview pod on the Guernsey Press Politics Podcast. Our senior reporter Matt Fallaize joined me to give his sense of where the debate is heading and which are the most eye-catching amendments. Listen here.

Good morning. The tax debate is back - and we’ve got something new for you at guernseypress.com.

With a mountain (57!) of amendments standing between States members and any sort of decision on Policy & Resources’ tax reform proposals, we’ll be providing regular updates on this live page.

So you’ll know what’s being debated, what’s been decided - at least in principle, and what the mood at the States has been like.