States to make a deal over £2.2 million rates bill?

Friday 20 June 2014

After a ten-year battle to get the States to pay rates on its vast property portfolio, St Helier Constable Simon Crowcroft says a deal could finally be on the cards.

Parish Constables have been fighting to get the States to start paying rates bills, which could reduce the burden on parishioners and businesses. The overall rates bill for the States has been estimated at £2.2 million - and at the moment, ratepayers have to effectively pay that to subsidise the States.

The Constables have been at loggerheads with the Treasury department over the idea, because the States say that if they are going to pay rates, they want to be able to clawback the money from the parishes somehow. But after a meeting with Treasury Minister Philip Ozouf and Assistant Treasury Minister Eddie Noel yesterday, Mr Crowcroft says that an agreement could be reached.

"After the meeting I'm optimistic that progress has been made," said Mr Crowcroft.

"I'm optimistic that Senator Ozouf is going to come forward with something more acceptable to my parishioners."

Last week, the 12 parish Constables unanimously refused to even discuss a proposal from the Treasury that would have ultimately have clawed the money back from the parishes,.

The States’ rates bill would be around £2.2 million per year – and that burden falls heaviest on St Helier ratepayers because of the States offices, schools and harbour in the parish, but there would also be rates income for St Saviour (from schools and St Saviour’s Hospital), and for St Peter (from the Airport).

St Helier Constable Simon Crowcroft said that it was fairer for the money to ultimately come from the States through the tax system because people pay according to how much they have, rather than the rates system, which is not levied with consideration to the ratepayers’ ability to pay.