P.2022/112 Proposition 4 - OPTION C (As inserted by Amdt 14)
5
II
Committee
Policy & Resources Committee
Proposition
OR IF PROPOSITION 3 IS NOT APPROVED
4) POLICY & RESOURCES’ OPTION C
To:
a. Confirm that the Committee for Employment & Social Security should continue with its agreed plan to increase contribution rates each year for a period of ten-years from 2022 in order to make the social security schemes sustainable through raising an additional £34m; and
Direct the Policy & Resources Committee to:
b. Develop proposals for raising up to £20m further revenues from the corporate sector without unduly negatively impacting Guernsey’s competitive position or compliance with international standards, through engagement with industry and the other Crown Dependencies, which should be presented to the States for consideration no later than November 2023. This work to include examination of all the options set out in Appendix 3 plus an alternative corporate vehicle or other appropriate form of entity or taxing structure which will be subject to income tax at 15% or such other rate or basis as the review may determine;
c. Establish a Sub-Committee to identify and review essential community services and, working with Principal Committees and wider States Members, consider where efficiencies, structural change, cessation, outsourcing, restricting access to and/or commissioning of those services could deliver significant reductions in the cost of public services, and to incorporate these into a medium-term plan for delivering overall cost reductions of between £30-35m to be considered by the States no later than July 2024, to include an implementation plan and timeline;
d. Review the Capital Portfolio and pipeline in light of the outcome of the debate and report back to the States by September 2023 with recommendations for (i) any changes to scope or funding of the existing portfolio; and (ii) whether the assumption for the level of capital expenditure contained within Principle 6 of the Fiscal Policy Framework should be amended;
e. Include proposals with the Government Work Plan 2023 to reprioritise initiatives for which funding has not yet been released to the extent necessary to limit the additional expenditure to deliver these initiatives over the remainder of this term to a maximum of £5.7m, being 1% of the 2023
General Revenue budget; and
f. To note the lack of certainty regarding the deliverability of these proposals and therefore to direct the Policy & Resources Committee to monitor progress and impact on the deficit and report back, if required, by December 2024 to set out any further measures necessary to address the sustainability of the financial position.
