Proposal for single levy on property passed

It will be paid by the property owner and collected and spent directly by the States of Alderney.

Policy and Finance chairman James Dent proposed the measure to make the tax ‘simpler, more transparent, more efficient and cheaper to administer’.

It would also allow Alderney to adjust the charges on businesses and domestic properties so they best reflected the needs of Alderney, rather than Guernsey as was currently the case.

‘Many are unduly penalistic, reflecting a time-past when certain business types were seen as an easy source of revenue – and while these business types may continue to be easy sources of revenue for Guernsey, I do not think it is the case in Alderney,’ he said.

‘I think anyone who looked at the present rates would find it hard to support the particularly penalistic rates on, for example,"offices for the regulated finance industries” and for “legal services” – it is fine to charge high rates when you have a cash-cow in tow, but when you are trying to attract new enterprises, these are simply folly.’

He added: ‘I, personally, would also reduce the charge on retail businesses – we want a busy, dynamic, Victoria St, and not to be pushing our business in the direction of Amazon.’

He acknowledged that any reductions of tax on one type of property would have to be balanced by increases on others.

A reduction in retail property tax would cost about £40,000 and reducing self catering property tax to the same level as for ordinary domestic use would cost £12,000.

A 10 per cent increase in domestic property tax – which makes up the vast majority of properties on Alderney – would bring in an extra £66,000.

Landlords, he said, would have plenty of time to adjust the conditions of their leases.

Ian Tugby was concerned about what would happen once Alderney had repatriated its taxes.

‘Guernsey are quite keen on us taking TRP back and there’s a reason for that. What happens when they take our gambling money?

'We are going to be short of money and Guernsey will just tell us to put up our taxes up.’

Members voted seven in favour of the proposal, with Ian Tugby abstaining. Louis Jean and Tony Barnes were both absent.