Extra £4m needed for Guernsey States priorities

An extra £4m is needed to pay for the States plans up to the end of this political term.

Policy and Resources (P&R) has forecast current spending commitments will lead to an annual £100m deficit in public finances by 2040.

Deputies have been asked to give P&R an indication of what priorities they want the States to continue with.

In September P&R will return to the States with a plan to fund the Government Work Plan (GWP).

How this extra £4m is generated will be part of the GWP and could include proposals for paid parking or a reform of corporate tax.

In its policy letter P&R has stated "the principal committees have been asked if they can do less or do the same differently - their overall response has been that they cannot, and that they also need to do more".

Policy and Resources Treasury Lead Deputy Mark Helyar said "committees have tried really hard to find savings where possible".

Deputy Bob Murray, the politician with responsibility for the Government Work Plan, said he did not know whether this would mean P&R would bring a goods and services tax (GST) back to the States.

"It really depends on whether States members support what we are looking to do or whether they look to cut it back.

"GST will always be an option, whether it is this assembly or the next assembly.

"In my own opinion GST will come back at some time, because we need that diversification in the revenue base."

In July, deputies will not be able to amend the GWP - normally such proposals can be changed by successful votes in the States.

Mr Murray said it was not a situation all deputies were happy with.

The proposals include £756,000 of savings and £4.8m of extra services.

Health and Social Care has asked for £500,000 in 2024 and 2025 to look at a new model for healthcare in Guernsey.

Mr Helyar said this may mean moving to a model of healthcare where patients pay for more of their treatment.

The Committee for Economic Development is looking for £1m every year from mid-2024 to mid-2027 for Guernsey Finance - this would be on top of the annual baseline grant of £1.5m.

The Committee for Environment and Infrastructure (E&I) has requested £925,000 per year to support the island's dairy sector.

E&I said alongside this the committee will bring forward in 2024 a policy that may lead to a cheaper new dairy.

The Committee for Education, Sport and Culture has said £124,000 is needed for the island's sports strategy in 2024, alongside £82,000 a year for five years from 2025.

The recently published Electricity Strategy recommended the setting up of a new renewable energy commission, which E&I estimated would cost £200,000.

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