Days after winning support for their Tax Reform proposals, Policy and Resources are now hoping for similar success with their 2027 Budget which include plans for growing Guernsey’s economy.
Key proposals include a £15 million investment programme aimed at funding “economic growth initiatives” over the next three years. That will be paid for by the recently announced ‘windfall’ from Pillar 2 revenues.
The money will be spent on projects that “demonstrate clear and measurable economic benefits and value for money,” said P&R.
The Committee also wants to “support Guernsey’s competitiveness and encourage investment” with ideas such as a new ‘Entrepreneur Tax Cap’ to help attract more people and new businesses to the island.
Other targeted measures to get people spending money locally include support for first-time buyers and younger homeowners to try and increase home ownership.
Tax on Real Property for hostelry, retail and warehousing sectors will be frozen if the States agree, while a new tap relief scheme would reduce alcohol duty on qualifying draught beer, cider and wine to try and get people spending in bars.
The Budget is also aimed at getting States spending under control says P&R with committees asked to deliver real terms savings of 1% as previously agreed.
If that happens then there might be a £4.2m surplus next year which is better than was forecast.
P&R Treasury Lead Deputy Charles Parkinson said: “This Budget recognises a simple reality: sustainable public finances and a strong economy go hand in hand. While we must continue to exercise restraint and improve the efficiency of public services, we also need to invest in the long-term success of the Bailiwick.
“That is why a central feature of this Budget is a new programme of investment in economic growth – £15m over the next three years. This money will be used only on projects where there has been a clear demonstration of measurable economic benefits, together with robust evidence that they represent value for money.
“The Budget also includes targeted support for local businesses and measures to maintain Guernsey’s attractiveness as a place to live, work and invest. Taken together, these proposals are designed to support economic activity while ensuring we remain focused on the long-term sustainability of the public finances. In short, this is a Budget for growth.”
