Guernsey is facing a projected long-term financial deficit of £100m due to the aging population and increased use of government services. The Policy and Resources Committee (P&R) has warned that there is not enough money to fund planned building projects. Guernsey’s politicians will be discussing the future of government finances and funding options for capital projects. P&R has proposed three plans, while other deputies have suggested changes. P&R’s preferred plan includes a 5% goods and services tax (GST), a lower rate of income tax for earnings below £30,000, and reforms to social security contributions. It also involves borrowing £350m for capital projects. Other proposals focus on savings, tax reforms, and increasing income tax. There is no consensus within the States, and P&R may face difficulties in getting its plan approved.
Source BBC
