Latest news with #LyndonTrott
BBC News
23-06-2025
- Business
- BBC News
Next Guernsey States likely to revisit plans for GST-plus
The majority of Guernsey's new government would not support proposals for a tax package including a goods and services tax (GST-Plus) should they stick to their manifesto of the deputies elected last week campaigned on a ticket to oppose GST-plus – which is due to be introduced in 2027, or said they wanted to explore other revenue raising means the taxation plans, which would raise £50m annually, may be at risk when Guernsey's States Assembly comes as Guernsey States accounts for 2024 are set to be published later on Monday, revealing a deficit in public finances. The outgoing President of Policies and Resources Committee (P&R) Lyndon Trott previously announced the States spent £44m more than it brought in last this context, candidates' views on taxation and the economy were of critical importance to many voters deciding where to cast their votes for last week's general deputies stick to their promises, the next mandate for government could see GST-Plus – which was agreed in November - scrapped GST-Plus package of tax reforms includes a 5% GST, lower income tax rates for earnings under £30,000 and social security reform, to start in candidates said in their manifestos they wanted a "fairer tax system" for the island, but lacked detail as to how they would approach tackling the financial deficit. Half of Guernsey's next assembly - 19 in total - said they were firmly against GST or GST-Plus. Some of them indicated they had opposed the policy in the past and were hopeful it would be reconsidered.A further eight said they wanted to explore other options before ratifying the last States' decision to introduce the new tax, but would consider GST-Plus as a last prominent GST-supporting politicians were voted of the 38 elected candidates, only 11 pledged to back GST-Plus in upcoming votes the new States is expected to hold early ways to tackle expenditure included closing corporate tax loopholes, improving tax administration, reforming the zero-10 corporation tax model and slashing public spending. Former States economist and incoming deputy, Dr Andy Sloan said the new government had a mandate to "turn over every stone" before introducing said he would like to see a three-pronged approach to "introduce a consumption tax, reform corporate tax and restraining expenditure" to balance the public accounts, but stressed that the introduction of a GST should be the last said: "The message from the electorate was they wanted no stone left unturned before GST being introduced and they don't believe that's been done yet."The States has to follow the will of the electorate and listen to that message and focus on restraining expenditure."He said when he first came to Guernsey over a decade ago spending was about £296m and it has now "ballooned" to £700m."I think the public really want to see expenditure restraint first. The majority of those who topped the poll were elected on that message," he said."We can't keep spending at twice the rate that we have income coming in, which we have been doing for 10 years." Returning Deputy Gavin St Pier, the leader of Forward Guernsey, is among those not supportive of GST-Plus "in its current form".He said: "We don't oppose a consumption tax but before it hits the streets it does need reform to make it fairer. It's really important to get the community behind this kind of tax change."It is so fundamental - it will affect everyone on the island for generations to come."At the first States meeting where business will be discussed - on 15 July - members will debate the accounts for public finances set to become a major theme next term, all eyes will be on what the States does next.
BBC News
17-06-2025
- Business
- BBC News
Outgoing Guernsey chief minister warns over corporate tax changes
Guernsey's next assembly should not make big changes to the island's corporate tax regime, the outgoing president of Policy and Resources (P&R) has warned. Deputy Lyndon Trott OBE led the campaign to introduce the zero-10 programme in 2008, which means some companies pay no corporation tax and others pay 10%.A number of candidates for the 2025 general election have said Guernsey should move to a zero-15 system or adopt a territorial corporate income tax scheme. "I caution the next States against doing anything unilaterally, only move when those of other size and status are willing to do the same," warned Trott. Proposals to change the island's corporate tax system were rejected on a number of ocassions during the last political States decided eventually to adopt a package of tax reforms, including a 5% GST, a lower income tax rate for earnings under £30,000 and reforms to social security contributions. In a wide-ranging interview with the BBC, before he leaves local politics on 30 June, Trott declared the changes to corporate tax in 2008 were the "biggest challenge" he had said the "damage that we would have done to our community, to our economy, would have been enormous" if the island had not voted for zero-10. Tax rises 'not heresy' Despite the States having agreed to introduce a GST, alongside other tax reforms, Trott suggested the States should look at other changes to make the island's tax system more progressive. He said: "I'm someone who thinks that we pay far too little in terms of income tax. I pay 20%. If 20% means 20% to me, I'd be very happy to pay 22% or even 25%. "There are colleagues of mine who throw their hands up in horror. It's heresy to speak in this way."Deputies rejected proposals from Trott for a temporary increase in the rate of income tax from 20% to 22%. "I genuinely believe in a progressive tax system," commented Trott."In other words, those who can afford to pay should pay. However, we absolutely can't touch the way we treat capital." Covid under-investment When confronted about why zero-10 had not led to greater economic growth, Trott complained that the island had "under-invested" in its infrastructure for "too long".He said: "Part of the problem was Covid. We ran down our reserves during Covid substantially. "We were lucky to have them. And we transferred £150m to support our community from our reserves."During the pandemic, as Vice-President of Policy and Resources, Trott was in charge of the financial support for businesses. He said: "It was essential. "But that is money that we would otherwise have invested directly into our infrastructure, which would have created a far more positive economic downturn than the one we've had."So I'm sort of hiding behind that."He blamed the lack of investment on infrastructure on the island's tax take. He said: "We take something like 21.5% of our GDP in tax. "Jersey takes 26%, the Isle of Man 29% and the UK is nearly 40%. So we are at the very bottom of that league table."
BBC News
15-06-2025
- Business
- BBC News
Jersey and Guernsey leaders discuss AI at British-Irish summit
Leaders from Guernsey and Jersey have attended a summit with Irish, UK and other Crown dependency politicians to discuss artificial intelligence (AI).Jersey Chief Minister Lyndon Farnham and Guernsey's Policy and Resources President Lyndon Trott were among the guests at the 43rd British-Irish Council (BIC), which was held in Newcastle, Northern were joined by other leading politicians, including the first ministers of Northern Ireland, Scotland and Wales, Irish Prime Minister Micheál Martin and representatives from theme of the meeting involved potential benefits and challenges of using AI in public administration, the States of Guernsey said. 'A vital forum' The BIC was set up as part of the Good Friday Agreement to promote relationships between the UK, Ireland and Crown said the summit allowed him and Jersey's External Relations Minister Ian Gorst to have "useful conversations" with other leading politicians which could benefit the added: "The British-Irish Council remains a vital forum that brings together member administrations to discuss, and address, our many joint challenges and opportunities."Trott said it was the last BIC summit he would attend before he retired from politics at the end of this month following the election in Guernsey."It has been one of the great honours of my public life to represent Guernsey at the British-Irish Council table over the years during my times as chief minister," he said.
ITV News
13-06-2025
- Business
- ITV News
Guernsey's core government spending was £44 million in deficit in 2024
The States of Guernsey spent £44 million more on core day-to-day activities such as running public services and benefits than it made through income last year. That overspend includes a £22 million deficit in non-infrastructure projects such as IT changes and a £13 million deficit in social security funds. In better news, States' investments were collectively £130 million more valuable at the end of 2024 than 2023. However, this is a valuation rather than a guaranteed return and the funds remain invested in a portfolio that regularly changes value. Overall, the States ongoing financial position is an underlying annual deficit of around £56 million. Want the inside track on the key issues that will shape Guernsey's Election this June? Listen to Guernsey Votes, an ITV Channel podcast packed with expert guests, local insight and analysis you can trust... Guernsey's Chief Minister, Deputy Lyndon Trott, who is not standing in this month's election, says: "The States cannot continue to rely on reserves built up in the past to fund the services of today and tomorrow. "The new Assembly will need to immediately focus its attention on the issue of improving public finances. I cannot stress enough how important that is to the long-term prosperity of the island." The outgoing Vice President of Policy and Resources, Deputy Heidi Soulsby, adds: "We are not raising enough through taxes to fund the services our community relies on. "The value of investments is of course important ... but they don't impact the amount of money we have available to deliver public services and invest in much-needed infrastructure. "The decision for the next States will not be whether something needs to be done, but what should be done to balance the books."
BBC News
13-06-2025
- Business
- BBC News
Guernsey: States report £44m annual deficit in core services
The States of Guernsey's financial position remains "parlous", with a £44m shortfall in core services in 2024, according to Policy and Resources (P&R) President Lyndon comprised of a £9m deficit in General Revenue, £13m in Social Security Funds and £22m in non-infrastructure project spends, such as IT transformation, elements of the revenue service programme and electronic patient Trott gave the update ahead of the General Election, with the total underlying structural annual deficit for 2024 said to be around £56m."In October when we published our 2025 Budget proposals I described the state of public finances as parlous and that remains the case," he said. He said the States "cannot continue to rely on reserves built up in the past to fund the services of today and tomorrow".Deputy Trott said the new Assembly needed to "immediately focus its attention on the issue of improving public finances" adding "I cannot stress enough how important that is to the long-term prosperity of the island".Deputy Heidi Soulsby, Vice President of the Policy and Resources Committee, said the message was that "we are not raising enough through taxes to fund the services our community relies on"."The decision for the next States will not be whether something needs to be done, but what should be done to balance the books," she said the value of investments was important, as was the financial performance of commercial entities under the wider States of Guernsey group, "but they don't impact the amount of money we have available to deliver public services and invest in much-needed infrastructure". "The bottom line is we had a significant deficit in General Revenue last year," she added. Deputy Soulsby said the work the States did earlier in the year "shows a looming need to invest in essential infrastructure projects with funds to pay for only a fraction of that". 'Investment growth higher' News of the deficit came as the States of Guernsey investments were valued £130m higher at the end of 2024 than the previous year. A spokesperson said this did not mean that the public purse received £130m in 2024, but rather their value had increased by 31 December 2024. The 2024 States of Guernsey Accounts were set to be published on 23 March, Deputy Trott said the provisional General Revenue results for 2024 gave a revenue deficit of £9m, which was a shortfall of £21m against the budget.A States spokesperson said the 2024 Accounts were the first to be fully compliant with International Public Sector Accounting Standards and to be given a "true and fair" view by the auditors.
