:00:00. > :00:18.Good evening. Now on BBC One, it's time
:00:19. > :00:22.A sales tax could be the only way to remedy Guernsey's deficit ` that's
:00:23. > :00:24.the conclusion of the island's Treasury Minister as the st`tes
:00:25. > :00:29.They reveal government spent ?2 million more than it collected
:00:30. > :00:39.They spend the money here, here here, here, here, and here.
:00:40. > :00:43.The States received ?361 million pounds last year.
:00:44. > :00:52.Leaving a deficit of ?24.8 million more than anticipatdd.
:00:53. > :00:57.Spending is more or less on track ` apart from a couple of departmental
:00:58. > :01:04.But the tax rate has fallen with fewer houses being bought and sold,
:01:05. > :01:08.But the biggest fall is in income tax.
:01:09. > :01:11.And that's the States' biggest earner.
:01:12. > :01:14.78% of overall revenue comes from income tax `
:01:15. > :01:21.But in the UK, that figure hs closer to 30% ` National Insurance,
:01:22. > :01:25.Corporation Tax and VAT all contribute significant amounts.
:01:26. > :01:31.Guernsey has always resisted taxing businesses or taxing sales.
:01:32. > :01:36.But a reliance on personal tax has left a legacy of loss`m`king.
:01:37. > :01:43.Perhaps a difficult decision is looling
:01:44. > :01:53.Well, what do people in Guernsey think about any increase in taxes?
:01:54. > :02:02.It is disgusting. People pax enough tax now. I think it is a good idea.
:02:03. > :02:09.It can generate more money. It is a relatively rich Island. I h`ve no
:02:10. > :02:14.problems with it. I have he`rd about Jersey and it is encouraging more
:02:15. > :02:21.people to use the internet. I don't think it is a good idea.
:02:22. > :02:29.Guernsey's Treasury Minister says all options are on the tabld.
:02:30. > :02:41.The reason for the increased deficit last year was not a result of
:02:42. > :02:46.spending but because of the budget. We need to look at the the
:02:47. > :02:51.alternatives are and broad`based consumption tax such as the and
:02:52. > :02:56.services tax is an option and we need to look at it. We are due to
:02:57. > :03:00.publish a document in the ndxt week which will set out some of the
:03:01. > :03:06.problems and challenges over the next ten years or so and wh`t some
:03:07. > :03:10.of the options are. But we `re then looking to bring in a report for
:03:11. > :03:13.debate before the end of thd year and at that point, we will be
:03:14. > :03:20.putting some recommendations to the states. The GST will be verx
:03:21. > :03:36.unpopular. What about corporation tax? GST clearly, any new t`x is not
:03:37. > :03:40.popular but one has two consider any change that has been part of a wider
:03:41. > :03:46.package which could well include substantial cuts in income tax. That
:03:47. > :03:56.would be as a result of the redistribution of the burden. In
:03:57. > :04:00.relation to corporate taxes, the zero ten regime has been extended
:04:01. > :04:03.and we will continue to keep that under review but we do have
:04:04. > :04:08.international standards that we have to comply with. One of the
:04:09. > :04:12.opportunities with GST is an opportunity to obtain a gay ``
:04:13. > :04:17.greater contribution from the corporate sector which is ctrrently
:04:18. > :04:20.forgone in the current structure so that is perhaps one of the prose
:04:21. > :04:23.that is often lost in the discussion.
:04:24. > :04:24.Jersey has an official political party.
:04:25. > :04:26.Reform Jersey was recognised in the Royal Court today
:04:27. > :04:31.and is currently the only rdgistered party in the island.
:04:32. > :04:34.It's not clear when major work to re`develop the old Havelet Brewery
:04:35. > :04:39.It was demolished last year to make way for new flats,
:04:40. > :04:53.A morning coffee with a view to die for but on the other side... I think
:04:54. > :04:57.it looks like a bomb site. Ht is so beat a full and then you get to
:04:58. > :05:02.hear, this part is lovely and then you have that. It is terrible. I
:05:03. > :05:08.think it is a real shame th`t they have not have read it on. It does
:05:09. > :05:12.look such a mess. But work here is at a standstill and has been for
:05:13. > :05:15.months. You get a certain alount of visitors asking what is happening
:05:16. > :05:21.and we said there was a lot of waiting for people and things should
:05:22. > :05:27.hopefully progress next year. The plans to replace the old brdwery
:05:28. > :05:32.with 33 flats were approved in 012 and last year, diggers were sent in
:05:33. > :05:37.to get things started. But for much of this year, there has been very
:05:38. > :05:46.visible `` little noticeabld work going on. The developer says it is
:05:47. > :05:49.in the process of discharging various planning conditions in
:05:50. > :05:54.Russian to the development `nd following that, we will be `ble to
:05:55. > :06:04.review the timetable for thd work. Environment says it has no cause for
:06:05. > :06:07.concern that this is how thd site will be left. But with neither
:06:08. > :06:10.willing to commit to win thd actual building work will start ag`in, this
:06:11. > :06:12.is a site that people around here might have to put up with for a
:06:13. > :06:22.while yet. That is the news tonight. Now, the
:06:23. > :06:32.weather. We have some welcome rain. Patchy
:06:33. > :06:49.rain that clears later. Quite a thick band of cloud out to the west
:06:50. > :06:55.of asked. `` west of us. Thd rain band overnight tonight will come and
:06:56. > :07:01.go but in general, damp night stop it Peter's out towards the lorning.
:07:02. > :07:08.14 degrees, the minimum temperature. Off and on, the rain will bd with us
:07:09. > :07:14.until lunch. Brighter skies developing across Alderney `nd
:07:15. > :07:19.Guernsey. Generally, a fresh appeal to the air. Temperatures up to 8
:07:20. > :07:24.degrees. It is much better on Sunday. A bright and mainly dry
:07:25. > :07:26.day. The chance of a few showers. The fine weather continues hnto next
:07:27. > :07:33.week. Have a nice weekend. later in the day. Before that,
:07:34. > :07:39.plenty of sunshine.