If States Members agree, the revalorisation of the island-rate will mean the Government will lose around £360,000 in 2020 – whilst giving a family living in an “average” three-bed home an extra £4.
“Provided the Assembly is willing to invest the time needed to pass the legislation, the freezing of the IWR will synchronise the approach of the Parishes and the government to the treatment of both parts of the rates charge and send a further signal that the government is helping islanders to pull through the pandemic,” a Ministerial Decision signed by the Treasury Minister noted.
The Treasury Minister, Deputy Susie Pinel, has responsibility for the Island-Wide Rate since the government took over responsibility for social welfare from the Parishes.
But local Constables who are not increasing parish rates “lobbied” her to not revalorise the rate this year in light of the covid-19 pandemic.
Pictured: The Treasury Minister, Deputy Susie Pinel, noted that the decision won’t significantly affect islanders’ finances or the public purse.
Deputy Pinel agreed to bring forward proposals to freeze the rate, noting it would neither “significantly help islanders in financial distress nor will it significantly deprive the public purse of monies to help islanders in distress”.
Meanwhile, 2021 rates will be uprated on the basis of the increase that should have been applied in 2020. This will limit the loss to the public purse only to 2020.
The rates freeze is scheduled for debate next Tuesday 14 July.