'Emergency budget' to be debated in February

Proposals to cut States spending are set to be published in January 2025, for debate in late February.

The "emergency budget", or update to the funding and investment plan as it had been described by Policy and Resources (P&R) followed decisions made in the 2025 budget.

Deputies approved around £650m worth of spending, but did not sign off on a 2p in the pound increase to income tax for two years.

P&R President Lyndon Trott warned this shortfall would mean there would only be "losers" when it came to this new funding and investment plan.

The committee had originally planned to publish proposals to cut spending for debate in January 2025, but Deputy Trott that deadline was "too tight".

Mr Trott said these proposals would focus on States capital spending and the timing of these projects: "There will be some disappointed people when we put forward these plans as we are more than a £100m short, whichever way you shake a stick at it".

Previously Mr Trott had warned that projects like the extension to Guernsey's Princess Elizabeth Hospital and the new Sixth Form centre at Les Ozouets were at risk.

He added the plan to extend Alderney's runway "had little chance of continuing" after estimates for the project came back costing £13m more than the original £24m budget.

In the States, Mr Trott clashed with Alderney Representative Alex Snowdon over the future of the project.

States Member Mr Snowdon said: "Alderney runway needs to go ahead no matter what, I think we are hearing rumblings that it may go on pause.

He accused P&R of going against the 1948 agreement and "putting lives at risk" by delaying the project, something Mr Trott disputed.

The 1948 agreement is a post-war deal which saw Guernsey take over responsibility for Alderney's most important public services.

Politicians in both islands have expressed a will to review the agreement, with Mr Snowdon urging the Ministry of Justice to be involved in any renegotiation of the deal.

Deputy Deter Roffey led proposals to reform the island's tax system and reform of social security contributions from around 2027.

He has urged P&R to look at short-term ways of raising more revenue through means like motoring taxes and paid parking.

"Paid parking raises as much as it wants you to raise, it didn't raise much last time it was proposed, as it was trying to change behaviours and alleviate congestion.

"It could raise a significant amount of money. I'm not saying that's the way to go but it's one the options which can be considered."

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