Hard won savings across States departments could be swallowed up by hikes in TRP and reductions to Guernsey's revenue allocation, States Members warned.
Alderney was the only Channel Island to balance its books this year, said Mr McDowall, proposing the budget. He told how the face of a two per cent loss in real terms from the allocation from Guernsey, the States had managed to offer businesses a helping hand with a cut in commercial occupiers' rates of 10 per cent and abolishing rates for charities completely. Thanks to careful work to manage the public workers' pension deficit, no public cash will be spent on plugging the hole.
But Mr McDowall, author of the budget, warned that in 2015 the allocation from Guernsey - this year £1,960,000 - was likely to drop. Guernsey currently faces a revenue shortfall of some £27 million. Alderney would have to continue to look for savings and "aggressively" seek new forms of revenue through its own initiatives. And he added: "That does not include Sales Tax - and indolent, backward looking and lazy form of taxation. I would further reflect that the overall contribution by Alderney to Guernsey's GDP is some £50-60 million. Where would Guernsey be without that in its current financial difficulties?"
Matt Birmingham warned that the savings made - especially in the public works department - were effectively in vain while the Island was in thrall to Guernsey over TRP. "The proposed five per cent increase in TRP in the Guernsey budget will, in reality, negate our efforts, and I suspect that any future cut we might be able to impart will get swallowed up in a similar way."
Negotiating an "early divorce" with Guernsey-set TRP and rolling it into one local rate would allow the island better control over costs, he said, especially as TRP was likely to rise in future to offset Guernsey's budget deficit.
The Guernsey Bereavement Service has made three visits to Alderney over the past few months and would like to continue to help you. We are visiting the island again on
Tuesday, 23rd February 2024 and would invite anyone who feels they would like Bereavement Counselling to telephone the Bereavement Service Office on 257778 to make a time to meet one of our counsellors.
The Guernsey Bereavement Service has made three visits to Alderney over the past few months and would like to continue to help you. We are visiting the island again on
Tuesday, 23rd February 2024 and would invite anyone who feels they would like Bereavement Counselling to telephone the Bereavement Service Office on 257778 to make a time to meet one of our counsellors. 