Guernsey population changes spark tax review

People in Guernsey and Alderney are being asked to take part in a tax review due to expected challenges in public finances, the States has said.

The government said projected population changes over 20 years meant shortfalls for public services would rise to £85m a year.

Expected population changes include the number of over-65s increasing "by several thousand" during that time.

Options being looked at by the States include service cuts and tax rises.

The States said the "significant shift" was under way because islanders were living longer and having fewer children.

That meant the percentage of the population working or economically active was "shrinking and that is forecast to continue".

A leaflet campaign, a new website and roadshows are two ways the government is telling people what the situation is and how it might have to deal with it.

It said it was "looking at a range of options", including "delivering savings through the reform of the public service".

It also said it was considering if some services could be cut or access restricted.

But those amounts would be small "compared to the overall shortfall", and therefore it needed to look at raising more revenue through tax.

Policy and Resources Committee Treasury head Mark Helyar said the "seismic shift that is our changing population make-up... is not the fault of any generation of islanders, but it is a reality and must be addressed".

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