Cuts plans face scrutiny in the States

Tuesday 28 April 2015

Minister’s plans for £95 million worth of cuts to staff budgets and services are being questioned in the States today as Members take the first opportunity to put the deficit reduction plans under the microscope.

A week ago, Chief Minister Ian Gorst revealed that the deficit in public finances – made up of a shortfall in tax receipts and the extra £60 million needed by Health and Education by 2019 – was predicted to reach £130 million. He outlined a plan to cut £60 million from the States £1m-per-day pay bill, and £35 million of cuts to benefits and services.

Unions have already reacted angrily to the proposals, and to proposals for a pay freeze announced on Friday, and this morning’s States sitting begins with a stack of questions about the plan as politicians start to unpick the detail behind them.

The questions include: the extent to which the move to a “zero/ten” tax system for businesses that taxes finance companies at 10% and most other companies at 20% has contributed to the shortfall; whether outdated tax laws will be changed to allow married women to deal with their own taxes rather than requiring their husbands to do it for them; what the savings target is for benefit cuts; whether workers’ rights and pay will be protected if their roles are outsourced or privatised; what success has been made so far with reducing States’ office space; and whether there is a “Plan B” in case the current plans do not raise enough money to fill the deficit.