Policy & Resources’ proposal to put up the duties by 2% above the RPIX rate failed yesterday when deputies backed an amendment from Sasha Kazantseva-Miller to freeze them in real terms.
And they told P&R to keep the duties in line with inflation again in 2028, although the possible introduction of minimum unit pricing could alter that approach.
The Economic Development president believed that P&R’s Budget proposal struck the wrong balance between raising revenue and supporting the economy and households.
‘The Budget does little to respond to the real cost of living pressures that our community is facing,’ said Deputy Kazantseva-Miller.
‘Keeping costs down so that islanders can continue to afford the little luxuries of going to their local pub is the least we can do.’
Her amendment drew unexpected support from Health & Social Care president George Oswald.
It was his committee’s approach to P&R which allegedly prompted the above-inflation increases proposed in the Budget.
‘Realistically, the way to tackle problem drinking is minimum unit pricing, and there’s quite a lot of evidence to show that is the only effective way to tackle it,’ said Deputy Oswald.
‘I was convinced by the argument that I read in the amendment to change my mind about this, which I’m entitled to do.’
The amendment was carried by 20 votes to 16.
Deputy Kazantseva-Miller also succeeded with an amendment to increase the production limit under which duty relief can be claimed by small, independent distillers from 20,000 to 30,000 litres of pure alcohol. No member voted against.
The States then heavily rejected Deputy Rob Curgenven’s bid to freeze the budget of the Overseas Aid & Development Commission at its 2026 level, with only Deputies David Goy and Liam McKenna and Alderney Representative Edward Hill voting in favour.
The Budget debate resumes this morning.
The Assembly still has 25 amendments to work through over the next three days.
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