Guernsey Press

No money for squeezed middle

THE chief minister’s admission yesterday that the island is on course to run ‘very short of money’ was a sobering warning.

Published

The cynics among us might wonder if his words were merely intended to make islanders more accepting of the forthcoming tax review, but his conclusion that we should focus on ‘the real problems of Guernsey’ is hard to argue with.

With many people already struggling to make ends meet as the cost of living soars ever higher, the last thing we want to see is politicians wasting taxpayers’ hard-earned money on unnecessary projects. And then come begging to us for more taxes.

But if, even after prioritising spending and cutting out the ‘nice to haves’, there simply isn’t enough to fund all the public services we expect from government, then the only decision left is to either slash those services or raise taxes.

Neither option is ideal and both will have a negative impact on islanders.

Fortunately, plans are in place to support the island’s poorest with an emergency uprating of income support rates, and Guernsey’s wealthiest residents are already well placed to weather the storm.

But will anything be done to help the squeezed middle income earners?

The answer is reminiscent of the note Liam Byrne, chief secretary to the Treasury under Gordon Brown, left to his successor in 2010: ‘I’m afraid there is no money.’