1. To substitute in Proposition 1 the word “and” for the full stop and to insert,
immediately after Proposition 1, the following additional Proposition:
“1A To agree, notwithstanding Proposition 1, the following:
i. to implement the package of tax reforms to make Guernsey and Alderney more financially sustainable as set out in sections 9 and 10 with the rates and thresholds as described in Appendix 7 in the first year of implementation SUBJECT TO the rates and thresholds progressing as follows:
with effect from 24 months following the implementation of changes to Income Tax and Social Security contributions and the
introduction of a GST:
o Social Security contributions allowance: £12,600 (provisional*);
o Higher rate of Income Tax threshold: £30,500 (provisional*);
o Pre-emptive increase in pensions and other benefits: 0.6%;
o Essentials Costs Relief Payment: set to reflect the estimated impact of a 4% GST on a basket of essential goods as described in Billet d’État No III of 2026;
o GST: 4%; and, with effect from 48 months following the implementation of changes to Income Tax and Social Security contributions and the introduction of a GST:
o Social Security contributions allowance: £13,000 (provisional*);
o Higher rate of Income Tax threshold: £33,000 (provisional);
o Pre-emptive increase in pensions and other benefits: 0.6%;
o Essential Costs Relief Payment: set to reflect the estimated impact of a 5% GST on a basket of essential goods as described in Billet d’État No III of 2026;
o GST: 5%.
*monetary thresholds to be adjusted for inflation prior to implementation
ii. with the Committee for Employment & Social Security to recommend to the States of Deliberation annually uprating:
o the personal Income Tax allowance;
o the Social Security contributions allowance;
o the Higher Rate of Income Tax threshold;
o the Essentials Cost Relief Payment; and
o the rates of the States Pension, Income Support and any
other impacted benefits
by a minimum of RPIX to ensure that the real value after inflation of the protection incorporated in the package of reform is maintained.”.
iii. to include within the Fiscal Policy Framework a fiscal rule that GST shall not exceed 5%.
2. To delete Proposition 3 and replace it with:
“To direct that before any increase in the rate of GST from 3% to 4%, or from 4% to 5% shall take effect, the Policy & Resources Committee shall publish an assurance review from the independent Fiscal Policy Panel affirming that in the Panel’s opinion the increase is consistent with the Fiscal Policy Framework and is necessary and appropriate having regard to the island’s fiscal, economic and inflationary environment and the impact of economic conditions and the proposed increase on lower- and middle income households. In the event that the Fiscal Policy Panel’s assurance review concludes that the scheduled increase in the rate of GST does not satisfy the requirements herein, the scheduled increase shall not take effect and shall instead be deferred for at least 12 months until the Panel
concludes that the requirements have been met.”.
3. In Proposition 4, to insert after the words “to give effect to the above decisions” the following:
“, and to direct that such legislation include provision requiring that any resolution to approve legislation that seeks to vary or repeal the legislative protections referred to in paragraph 10.4, and outlined in Resolution I. 2 of Billet d’État No III of 2026 made on the 26th February 2026, shall be deemed to have carried only if not less than two-thirds of the Members present vote in favour.”.
4. To insert an additional Proposition:
“To direct the Policy & Resources Committee to take all such steps as are necessary to ensure that the States are provided with the opportunity to consider in the 2028 Budget Report options for an additional lifetime tax allowance (an Additional Earnings Allowance) in respect of otherwise taxable earned income to incentivise younger earners to remain, return or establish in the island.”.
5. To insert an additional Proposition:
“To direct the Policy & Resources Committee and the Committee for Housing to take all such steps as are necessary to ensure that the States are provided with the opportunity to consider in the 2028 Budget Report options to introduce a tax-free Guernsey Property Savings Account (GPSA) to incentivise and better enable saving by first-time buyers for the purposes of buying a home in Guernsey or Alderney.”.
6. To insert an additional Proposition:
“To direct the inclusion within the scope of longer-term work (envisaged in Appendix 3 of the Tax Review Sub-committee’s report) an examination of the role of Social Security contributions in Guernsey’s revenue base.”.
7. To replace the additional proposition to be inserted by Amendment 24 with the following:
“To direct the Policy & Resources Committee, in consultation with the Committee for Employment & Social Security, as part of the Government Work Plan Super Priority ‘Shape and Strengthen the Focus on Early Years and Families,’ to consider the re-introduction of child tax allowances or credits, alternative tax or Social
Security measures, and existing measures including, but not limited to, Family Allowance, charge of child and dependent relative tax provisions, reporting as soon as practical to the States of Deliberation with recommendations which should include costed, targeted measures that most effectively support families with the costs of raising children.”.