Budget for economic growth proposed by P&R

38 minutes ago John Fernandez Guernsey political reporter BBC This is the fifth budget Deputy Charles Parkinson has presented to the States Guernsey's Policy and Resources Committee (P&R) has put forward plans for a £15m fund to invest in stimulating economic growth across the next three years, in its 2027 budget. Treasury Lead Charles Parkinson said after years of "sluggish" economic growth it was time to invest. Officials predict 0.5% GDP growth next year. The committee has also put forward plans to abolish mortgage interest relief, a new tax cap for entrepreneurs and reductions to the tax on beer bought in pubs. Scrutiny Management Committee President Andy Sloan criticised the decision to publish two budgets. He said it "drove a coach and horse" through the States commitment to savings that was agreed last year. Deputy Andy Sloan is critical of the States presenting two budgets to the assembly Committees with ideas on how to use money from the £15m economic development fund are able to apply to P&R. The money for the fund has come from the extra tax revenue set to be received by the States from big companies under pillar two, which P&R said this year would bring in about £79m. What else is in the 2027 budget? About £6m is being put aside for initiatives to support savings within the States. Despite calls for a freeze, fuel duty is set to go up by the rate of inflation, equivalent to 3.9p per litre of petrol. First registration duty is also set to rise by inflation. Property tax rates for the hostelry, retail and warehousing sectors could be frozen, while the tax on commercial car-parking land is set to increase by 15%. Income tax allowances are set to increase by £650. Alongside the Committee for Housing, P&R is investigating measures to support first-time buyers and younger homeowners. The budget is due to be debated at the States meeting that starts on 3 November. More on this story Related internet links