Wednesday 12 August 2020
Select a region

Ministers back down on Christmas bonus as pensioners protest Budget debate

Ministers back down on Christmas bonus as pensioners protest Budget debate

Tuesday 15 December 2015

Ministers back down on Christmas bonus as pensioners protest Budget debate

Ian Gorst’s Council of Ministers has backed down from ending the Christmas bonus just hours before the Budget debate, with pensioners protesting as Members entered the States Chamber this morning.

Although they are pressing ahead with plans to phase out the extra £3,000 tax allowance for pensioners and mortgage interest tax relief, the Council of Ministers have signalled that they will keep the Christmas Bonus.

They still want an amendment guaranteeing an £85 bonus for all pensioners who don’t pay Income Tax to be scrapped – but have pledged to bring back new proposals for a mean-tested bonus in the next 12 months.

The budget, which is being debated over the next few days by the States, proposes measures that would increase tax revenue by £1.8 million next year – but it also sets up proposals that will go much further over the next few years.

Cutting both mortgage interest relief and pensioner allowances would ultimately increase Islanders’ Income Tax bills by around £15 million per year, but ministers’ plans are to gradually phase them out over 12 years.

The phasing out would start in 2017, and no new entrants will be allowed to get the extra tax allowance for pensioners.

The budget proposals are:


Income Tax…

- Standard exemption for marginal-rate payers goes up by 0.9% in line with inflation.

- Mortgage interest tax relief to be phased out over 12 years.

- Added exemption for pensioners to be phased out.

- Increase tax relief for child care from £12,000 to £14,000.

- For top earners at 20% rate allowances for children to be phased out.

- Reduction in relief for non-residents.


Duty increases…

- A bottle of spirits goes up 6.6% to a total of £13.83.

- A bottle of wine goes up 1.3% to a total of £1.47.

- A pint of beer goes up 0.9% to a total of 35 pence.

- A pint of strong beer goes up 4.9% to a total of 61 pence.

- 20 cigarettes goes up 6.7% to a total of £5.32.

- A litre of petrol goes up 2.1% to a total of 46 pence.


Vehicle Emissions Duty…

- Increase income from VED by hitting polluting vehicles.

- Discount for older vehicles cut.

- The 85% discount for hire car firms to be cut.

- VED to be worked out by emissions for commercial vehicles.


Plans for 2016…

- Options paper for independent taxation.

- Change Income Tax system for same-sex marriage.

- Continue work on Property Tax.

- Review 1(1)k tax system.

- Review Benefits in Kind.

Sign up to newsletter



Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.

Once your comment has been submitted, it won’t appear immediately. There is no need to submit it more than once. Comments are published at the discretion of Bailiwick Publishing, and will include your username.

Posted by Trevor Carre on
Tax the people, until they have nothing left. Then where will the States find the money to waste!
Posted by Tilly the Toad on
Why are they targeting the very people who have contributed all their working lives?? I think the States - especially Treasury & Chief Ministers should hang their heads in shame... how can they sleep at night?
Posted by Karen Jones on
Can you imagine anyone saving for their old age when the States only want to take from pensioners, especially those who have saved and are now paying for others LTC through tax. Apart from that they have never given anyone an incentive to save as in the UK with ISA's. So disappointing. Something must be done about the tax that higher earners are paying and our rich residents.
To place a comment please login

You have landed on the Bailiwick Express website, however it appears you are based in . Would you like to stay on the site, or visit the site?