Guernsey’s Budget for 2023 was published on 4 October and was debated at a special Budget States meeting starting on Tuesday 1 November.
There was no ‘glossy’ version for public consumption so here are some suggested steps to help you get your head around it:
Step 1 –
Read the foreward to the document, where P&R set out the overall economic picture for Guernsey, including how much we are raiding our savings.
Step 2 –
Read this Bailiwick Express article which runs through the increases in States committee budgets and the tax changes we are likely to notice in our everyday lives.
Step 3 –
Budget measures can be used to address specific issues and this year, not surprisingly, there’s a focus on Housing. Read about the housing initiatives included in the Budget by P&R in this Bailiwick Express article.
Step 4 – Check out the Amendments section below, where individual Deputies raised additional ideas for debate, both successfully and unsuccessfully.
Budget debates are an opportunity for Deputies to introduce new ideas for Guernsey’s tax system for debate, hence starting the meeting on a Tuesday, rather than a Wednesday.
Click the voting result eg LOST 2-31 to see who voted which way.
Amendment 1 (De Lisle/McKenna) – proposes a flat rate increase in TRP of 8% instead of 0% for properties with TRP ratings of less than 200, rising to 20% for TRP ratings over 500. LOST 2-31.
States throw out bid to spread TRP increase across all homes.
Amendment 2 (Inder/Helyar) – proposes reducing the tax rate for the cannabis industry from 20% to 0% for five years to support a fledgling industry. LOST 8-25.
Deputies vote to maintain cannabis tax rate.
Amendment 3 (Inder/Le Tocq) – instructs all committees to work with Jersey to identify revenue savings and P&R to include any opportunities in the Government Work Plan. CARRIED 28-5.
Bailiwick Express pre-debate analysis
Amendment 4 (St Pier/Helyar) – directs P&R to help first time buyers by investigating giving tax incentives to developers for houses sold below the average market price. CARRIED 20-14.
Bailiwick Express pre-debate analysis (1st half).
Amendment 6 (Soulsby/St Pier) – directs P&R to consider tax incentives for renting a room in your house, particularly to a key worker. CARRIED 36-0.
Bailiwick Express pre-debate analysis.
States to investigate spare room tax breaks.
Amendment 7 (Kazantseva-Miller/St Pier) – directs P&R to consider restricting ownership of local market houses to people qualified to occupy them. RULE 24.6 BEYOND THE PROPOSITION, NOT DEBATED.
Bailiwick Express pre-debate analysis.
Local market protection attempt scrapped on a technicality.
Media articles about the Budget (in date order)
- 2023 Budget proposals out today (3 Oct, Bailiwick Express)
- P&R: ‘Financial position is becoming precarious’ (4 Oct, Guernsey Press)
- Comment: Budget – The worst is yet to come (4 Oct, Guernsey Press)
- States’ spending set to increase by nearly £50m next year (4 Oct, Bailiwick Express)
- Toughest situation for “donkeys’ years” (4 Oct, Bailiwick Express) (cf Jersey)
- Cost of living measures included in Guernsey’s 2023 budget (4 Oct, BBC Guernsey)
- States’ above-inflation budget increase ‘concerning’ says IoD (7 Oct, Guernsey Press)
- Housing plans to alleviate crisis (8 Oct, Bailiwick Express)
- Tax breaks for renting out spare rooms could attract key staff (25 Oct, Bailiwick Express)
- States may protect local market homes for local residents (25 Oct, Bailiwick Express)
- Tax breaks could encourage more affordable first-time homes (25 Oct, Bailiwick Express)
- Cannabis taxes could be reduced to 0% for five years (26 Oct, Bailiwick Express)
- Fresh attempt to get Guernsey and Jersey collaborating (31 Oct, Bailiwick Express)
- Analysis: At least our treasury lead should avoid crashing the economy… (31 Oct, Bailiwick Express)
- States’ spending in 2023 could go above £48m budget increase (1 Nov, Bailiwick Express)
- States throw out bid to spread TRP increase across all homes (1 Nov, Bailiwick Express)
- This Budget is the last of its kind, says Helyar (2 Nov, Guernsey Press)
- Deputies vote to maintain cannabis tax rate (2 Nov, Bailiwick Express)
- States to investigate spare room tax breaks (2 Nov, Bailiwick Express)
- Local market protection attempt scrapped on a technicality (2 Nov, Bailiwick Express)
- ‘So many ways we could fail it keeps me awake’ (3 Nov, Guernsey Press)
- St Pier: What happened in the States last week? (7 Nov, Bailiwick Express)
The Budget in detail
If you can, read the policy letter in full.
You may also be interested in comparing the cost of living measures in Guernsey’s Budget with Jersey’s £56.5m emergency mini-budget, agreed in September.