04/07/2014 BBC Channel Islands News

Good evening. Now on BBC One, it's time

A sales tax could be the only way to remedy Guernsey's deficit ` that's

the conclusion of the island's Treasury Minister as the st`tes

They reveal government spent ?2 million more than it collected

They spend the money here, here here, here, here, and here.

The States received ?361 million pounds last year.

Leaving a deficit of ?24.8 million more than anticipatdd.

Spending is more or less on track ` apart from a couple of departmental

But the tax rate has fallen with fewer houses being bought and sold,

But the biggest fall is in income tax.

And that's the States' biggest earner.

78% of overall revenue comes from income tax `

But in the UK, that figure hs closer to 30% ` National Insurance,

Corporation Tax and VAT all contribute significant amounts.

Guernsey has always resisted taxing businesses or taxing sales.

But a reliance on personal tax has left a legacy of loss`m`king.

Perhaps a difficult decision is looling

Well, what do people in Guernsey think about any increase in taxes?

It is disgusting. People pax enough tax now. I think it is a good idea.

It can generate more money. It is a relatively rich Island. I h`ve no

problems with it. I have he`rd about Jersey and it is encouraging more

people to use the internet. I don't think it is a good idea.

Guernsey's Treasury Minister says all options are on the tabld.

The reason for the increased deficit last year was not a result of

spending but because of the budget. We need to look at the the

alternatives are and broad`based consumption tax such as the and

services tax is an option and we need to look at it. We are due to

publish a document in the ndxt week which will set out some of the

problems and challenges over the next ten years or so and wh`t some

of the options are. But we `re then looking to bring in a report for

debate before the end of thd year and at that point, we will be

putting some recommendations to the states. The GST will be verx

unpopular. What about corporation tax? GST clearly, any new t`x is not

popular but one has two consider any change that has been part of a wider

package which could well include substantial cuts in income tax. That

would be as a result of the redistribution of the burden. In

relation to corporate taxes, the zero ten regime has been extended

and we will continue to keep that under review but we do have

international standards that we have to comply with. One of the

opportunities with GST is an opportunity to obtain a gay ``

greater contribution from the corporate sector which is ctrrently

forgone in the current structure so that is perhaps one of the prose

that is often lost in the discussion.

Jersey has an official political party.

Reform Jersey was recognised in the Royal Court today

and is currently the only rdgistered party in the island.

It's not clear when major work to re`develop the old Havelet Brewery

It was demolished last year to make way for new flats,

A morning coffee with a view to die for but on the other side... I think

it looks like a bomb site. Ht is so beat a full and then you get to

hear, this part is lovely and then you have that. It is terrible. I

think it is a real shame th`t they have not have read it on. It does

look such a mess. But work here is at a standstill and has been for

months. You get a certain alount of visitors asking what is happening

and we said there was a lot of waiting for people and things should

hopefully progress next year. The plans to replace the old brdwery

with 33 flats were approved in 012 and last year, diggers were sent in

to get things started. But for much of this year, there has been very

visible `` little noticeabld work going on. The developer says it is

in the process of discharging various planning conditions in

Russian to the development `nd following that, we will be `ble to

review the timetable for thd work. Environment says it has no cause for

concern that this is how thd site will be left. But with neither

willing to commit to win thd actual building work will start ag`in, this

is a site that people around here might have to put up with for a

while yet. That is the news tonight. Now, the

weather. We have some welcome rain. Patchy

rain that clears later. Quite a thick band of cloud out to the west

of asked. `` west of us. Thd rain band overnight tonight will come and

go but in general, damp night stop it Peter's out towards the lorning.

14 degrees, the minimum temperature. Off and on, the rain will bd with us

until lunch. Brighter skies developing across Alderney `nd

Guernsey. Generally, a fresh appeal to the air. Temperatures up to 8

degrees. It is much better on Sunday. A bright and mainly dry

day. The chance of a few showers. The fine weather continues hnto next

week. Have a nice weekend. later in the day. Before that,

plenty of sunshine.