The IoD, GIBA, GCC and AGC* are urging Deputies not to support the amendment lodged by Deputies McKenna and Vermeulen, which seeks to reverse the November 2024 decision instructing Policy & Resources to prepare for tax reform, including GST, and to halt all related work.
Ahead of the election, the message from the business community was clear. Any Deputy standing on a platform of rescinding GST must demonstrate how they would, through alternative means, deliver the revenue or cost savings required to address Guernsey’s structural public finance challenge. Simply removing one of the principal options without presenting a credible alternative does not provide the clarity or leadership the island needs.
It is too early to take any of the three main options off the table. The IoD Guernsey Director’s Economic Confidence Survey reinforced this balanced approach. Businesses called for spending restraint, plans for economic growth, a review of public services and closer working with Jersey before introducing or increasing taxes.
Earlier this month, global ratings agency S&P reaffirmed Guernsey’s stable outlook and commented, “We expect a suite of tax reforms, including a GST, to be implemented from 2028 to strengthen and diversify Guernsey's revenue base and slightly improve its long-term fiscal position”. Now is not the moment to remove GST from consideration. A formal review process is already underway and should be allowed to run its course. The scheduled debate in June provides the appropriate forum for informed decision-making based on evidence and analysis. Calls to simply “say no to GST” must be accompanied by a credible and sustainable alternative that addresses Guernsey’s long-term public finance challenge. This amendment does not set out such an alternative.
Tax reform has been under discussion for nearly two decades. The structural issue remains unresolved, and continued uncertainty carries its own economic cost. Our community and businesses require clarity, stability and a long-term solution that secures the island’s public finances.
The associations remain committed to constructive engagement with Deputies to ensure Guernsey takes a responsible and sustainable path forward.
*Institute of Directors, Guernsey International Business Association, Guernsey Chamber of Commerce and the Association of Guernsey Charities