P.2022/112 Proposition 5 - OPTION D (As inserted by Amdt 14)
5
II
Committee
Policy & Resources Committee
Proposition
OR IF PROPOSITION 4 IS NOT APPROVED
FAIRER ALTERNATIVE 2 – OPTION D
5)
Stage 1
A) To agree not to introduce a broad-based GST.
B) To direct the Policy & Resources Committee to implement a package of expenditure reduction and progressive revenue raising measures by:
a. preparing the States of Guernsey Annual Budget for 2024 and 2025 to include for each year a £4m real-terms reduction in revenue expenditure;
b. including in the States of Guernsey Annual Budget for 2024 proposals for a new ‘Community & Infrastructure Contribution’ from corporate entities to raise up to £20m;
c. increasing the Personal Income Tax Allowance by £400 no later than the end of 2025;
d. increasing the current personal tax caps of £150,000 and £300,000 to amounts that the Committee believes are appropriate, taking into account the need to generate additional revenue and to ensure that any increased caps do not unduly negatively impact Guernsey’s competitive position particularly, with regard to Jersey;
e. including in the Budget Report 2024 proposals, in line with the existing States’ direction to raise revenues from those most able to bear the burden, to raise up to £2m in real terms annually from domestic properties with a TRP of 300 and above and examining the implementation of a deferral scheme for those on fixed incomes;
f. bringing proposals as part of the States of Guernsey Annual Budget for 2024 in relation to TRP on corporate parking; and
g. working with the Committee for the Environment & Infrastructure to consider the opportunities to raise a minimum of £5m annually in developing proposals for an Open Market inscriptions policy and the Open Market Transfer Register (as set out in the Population and Immigration Policy Review Policy Letter dated 5th September 2022) and to make any necessary recommendations to the States before the end of 2023.
C) To approve the development and implementation of the following changes no later than the end of the current States’ term:
a. A restructure of the Social Security Contributions system, as outlined in section 8 of the policy letter, save for a reduction in the employer contribution rate to 7% in respect of any employee over the retirement age for States Pension purposes; and
b. That for Income Tax and Social Security Contribution purposes, the totality of each individual’s allowances and withdrawable deductions are reduced at a ratio of £1 of allowances and withdrawable deductions for every £5 that that individual’s calculated income is above £80,000 (such limit being pro-rated in the year of arrival or departure, based on the proportion of time spent in Guernsey in the relevant year).
