Excess spending responsible for tax base review

THE debate around the fiscal framework and the tax base in the budget appears to relate unprecedented expenditure pressures to the ageing population.

Stop blaming the older generation for the increase in demand for public services and fiscal reform.

The ageing demographic is not the main driver for a major review of the tax system and raising additional revenues. It’s the excesses of government spending that’s responsible for the tax base review. The older generation are thrifty and live within their means. They’ve been the backbone of the island’s success.

Funding elderly residential care may cost £20m. each year. But this is comparatively small given the government revenue expenditure forecast of £412m. and the fat in public services. That amounts to an estimated £26m. of the £40m. necessary to eliminate the structural deficit over the P&R Plan period 2018-2021. The P&R Budget report admits lack of control over the number and cost of public sector workers since the scrapping of the staff number limitation policy.

Just in the last year the States supported additional spending of £10m. a year on three programmes: income support, IT services and overseas aid. P&R supported these additions in expenditure at a critical fiscal period. P&R are recommending that the States authorise a temporary overdraft facility to Aurigny of a maximum of £25.7m. in 2020.

Enough is enough. It’s all a matter of cutting expenditure and not spending beyond our means, thereby maintaining a competitive economy.

DEPUTY DAVID DE LISLE

Address withheld.