The island remains in the black with a “modest surplus” of £1million confirmed, which Deputy Gavin St Pier said should make us all proud.
“The key thing is that it’s a balanced budget, and recognising that it’s the second balanced budget in a row, after fully providing for capital spending, after complying with all our fiscal rules, after delivering against the medium term financial plan, to deliver a balanced budget after eight years of structural deficit, to deliver a balanced budget in an environment where virtually every other jurisdiction in the world runs a deficit, is a significant achievement and one of which Guernsey should be proud,” he said.
Pictured: Some of the figures released as part of the 2019 Budget.
The Policy & Resources President said that’s been achieved through years of financial discipline and planning, but that doesn’t mean the budget for 2019 comes laden with financial gifts.
“Financial discipline and planning: both are absolutely essential for a government and whilst unlikely to capture popular imagination, neither can be taken for granted. Let’s not pretend it has been easy. Imposing both on government has been met with both resistance and scepticism. But now we can reap the rewards and be proud that our public finances have stabilised and improved whilst other jurisdictions continue to struggle. That stability is vital as it allows the States to deliver the vital services on which we all rely.”
The P&R President said his budget comes with “a number of positive measures aimed at easing the burden on islanders, replenishing the island’s reserves and community investment.”
Pictured: Some of the measures in the 2019 budget include those above and below:
- Another £500 increase in personal tax allowances (up to £11,000 per person); benefitting low and middle income families the most, representing tax cuts of £600 for a couple and £300 for single people
- Furthering the withdrawal of personal allowances for high earners, by lowering the withdrawal threshold to £100,000
- Increasing the Income Tax cap
- Introducing a banded system of domestic TRP rates for larger properties
- Introducing a new higher rate of commercial TRP for Accountants and Non Regulated Finance Services Businesses
- Extension of 10% rate of Corporate Income Tax to more businesses
- Introducing a higher rate Document duty band for property conveyancing aimed at helping first time buyers in particular
- Fuel duty up 3.1p a litre
- Tobacco duty up 7.4% for cigarettes, 7.9% for cigars and 9.9% for all other tobacco products – equal to 37p on 20 cigarettes
- Alcohol duty up 5% on most products equal to 10p on a bottle of wine, 67p on a litre of spirits and up to 2.84 pence on a pint of beer
- Alcohol duty on low strength beers and ciders produced by small independent brewers is cut to 50% of normal rates equal to a 14p cut
Deputy St Pier said some of the measures introduced “will directly benefit our community and residents.”
Pictured above: How some of the funds will be distributed under the 2019 Budget.
A number of different revenue raising methods, indirect taxes and regulations have been changed within the 2019 Budget. Express will be exploring them over the coming days, starting with a focus on fuel, coming later today.
Pictured top: Deputy Gavin St Pier has presented his latest budget for Guernsey.
