States seems utterly unable to make tough choices about prioritising expenditure

We clearly have, and have had for many years, successive States which have had very little regard for sensible fiscal policies whereby government expenditure and taxation rise generally in line with the growth of the economy. That concept has been utterly ignored. Now the chickens have come home to roost and the bills have to be paid.

In the meanwhile, spending continues unchecked with, it appears, the treasury minister powerless to exert any control. A committee set up to find annual savings of £10m. is, by all accounts, finding it difficult to get to this very modest target. The States spends around £400m. per annum and target savings would amount a very modest 2.5%.

Any organisation should be able to trim 10% off its costs if it is serious about exercising control over its activities without trying all that hard.

Is it any wonder the general public is unwilling to hand the States a lever to raise uncontrolled additional taxes through GST, itself a new tax regime which brings with it more States cost not to mention the costs incurred by businesses in administering such a tax? Raising taxes, particularly through a new tax which the electorate knows only too well is only ever likely to rise and rise substantially, is rightly being resisted. The States seems utterly unable to make the tough choices about prioritising expenditure so is resorting to higher taxes and borrowing to avoid having to actually make a decision.

In all fields of enterprise decisions have to be made about the priorities of equally-worthy projects and what is actually needed as opposed to ‘nice to have’. The organisation of the States effectively precludes such prioritisation. Deputy Ferbrache’s efforts in this direction have been ignored.

Given where successive States have led us, a tax rise is probably unavoidable. If there has to be one, the most sensible solution which has come so far appears to be from Deputy Trott to raise the rate of income tax but without any further adjustments to the tax system with lower rate bands, greater allowances and more complication. No additional States cost of administration and business systems already in place.

However, we need to do better.

Richard Battersby

GY1 1SP