The States has voted to keep the £85,000 income threshold at which people start losing their personal tax allowances, rejecting a bid to raise it in line with inflation.
The amendment, brought by Forward Guernsey leader Deputy Gavin St Pier during the 2027 Budget debate, would have increased the threshold to £88,650.
Under the Policy & Resources plan, people earning more than £85,000 will continue to lose £1 of their personal allowances and deductions for every £5 they earn above that amount.
Keeping the threshold frozen is expected to bring in an extra £800,000.
The proposal was narrowly defeated by 19 votes to 18, with one abstention.
But the debate also exposed a split within Forward Guernsey, when Deputy Tom Rylatt was among the first members to speak against his own party leader’s amendment – and the only party member to vote against.
Despite supporting Deputy St Pier’s amendment, Deputy Andy Sloan was quick to seize on the division, taking a swipe at the fledgling party’s organisation.
He drew laughter across the chamber when he said: “Having been a member of a political party… a proper one”, before questioning whether party discipline had already broken down.
The vote means the £85,000 threshold will remain in place for the 2027 budget.
