Policy & Resources expected to oppose Guernsey budget amendments

Guernsey’s most senior political committee is expected to oppose all proposed changes to its 2026 budget.

They include a halt in any rises to spending in 2026, plans to reduce the tax on petrol and future changes to how corporate tax income is calculated by the States of Guernsey.

Policy and Resources’ (P&R) budget for next year includes plans to increase spending by £12m, to tax vapes and increase many duties above inflation.

P&R President Deputy Lindsay de Sausmarez said a proposed £600 increase to income tax allowances would help people struggling with the cost of living.

The budget has been criticised for not doing enough to fix the deficit in public finances, but P&R said a debate on the future of the island’s tax policy was due to take place in the first half of the new year.

Guernsey’s Scrutiny Management Committee has sent a letter of comment to P&R which criticised the budget for spending more than the island is bringing in through taxes.

Deputy Andy Sloan, chair of the committee, said the predicted 4.4% increase in spending, despite a 3.4% forecast growth in income, was “of particular concern” as the deficit was projected “to worsen” from £66m to £77m in 2026.