Government have issued their budget proposals for 2025 and the Chamber executive have reviewed them on behalf of the members.

Stephen Rouxel, President of the Chamber of Commerce said,

Guernsey’s future depends on responsible, forward-thinking measures – and to fund our future, a whole host of changes are necessary, increasing income tax alone will not fix this problem.

A short-term tax increase may be necessary to address immediate pressures facing Guernsey’s finances to deliver the vision of government, it is ultimately a temporary fix. This approach does not address the underlying structural issues affecting our economy. What is needed is an expanded and diversified tax base to secure sustainable funding for Guernsey’s future for short, medium and longer term infrastructure to help grow the economy.

We need Government to set aside their differences and come together to agree a set of measures that will allow the much-needed investment in infrastructure and services.

When we surveyed Chamber members last year, they were supportive of Option 3 which is similar to the amendments lodged by Deputy Peter Roffey and Deputy Peter Ferbrache, which includes GST. It appears that the breadth and depth of this amendment addresses most of the respondents concerns regarding tax reform.  It is time to move beyond short-term thinking.”

Last year members were asked the following questions:

  • Are you now convinced that there is a significant gap between government income and costs?
  • Do you agree with the Chamber executive view that ‘option 3’ (the full tax reform package) is the most viable option proposed?
  • Do you agree with the Chamber executive view that Government need to set out a clear path for cost cutting including civil service pension reform?

 With 90 responses the survey was deemed statistically significant and representative of the Chamber Membership, you can read more below:

Chamber Members Align with Executive’s Views on Tax Reform and Cost-Cutting – Guernsey Chamber of Commerce

Gap Between Government Income and Costs

A clear majority, 79% of respondents, now recognise the significant gap between government income and expenditure.  A marked change in stance from the survey earlier in the year.

Support for ‘Option 3’ – The Full Tax Reform Package

73% of respondents agree with the Chamber Executive’s endorsement of ‘Option 3’, the full tax reform package, marking it as the most viable proposal on the table. With only minor support for other options, it appears that the breadth and depth of ‘Option 3’ addresses most of the respondents concerns regarding tax reform.

Demand for a Clear Path on Cost-Cutting:

Almost unanimously, 89% of respondents are in agreement with the Chamber Executive’s view that the Government needs to set out a clear path for cost reduction. This overwhelming consensus highlights a shared belief in the necessity for financial discipline alongside any tax reforms.

You can read our review and recommendations on the 2023 Budget here: Funding-and-Investment-Plan-Review-Final.pdf (guernseychamber.com)