This Is Guernsey

By Nick Mann

INDIVIDUAL taxpayers will escape the burden of zero-10 in the future if the economy continues to be strong. Treasury minister Lyndon Trott remains upbeat about the tax reforms as the public digests the 2008 Budget.

‘The Budget has been in the public domain for three days and I have received one call complaining about an issue and I have received several dozen contacts from people lauding the budget,’ said Deputy Trott.

‘That hasn’t been a surprise. We knew when we were putting it together that the strong economic performance meant we were going to be able to present a much more positive Budget than many had feared.

‘We have known for some time how well the economy has been performing and we have regularly updated the States so it shouldn’t really have come as too much of a surprise to close followers of public finances.

‘We believe that if the economy stays strong, there will be little need to look to individual taxpayers in the future.’

The Budget announced a fourfold increase in tax on property for those companies benefiting from zero-10.

Deputy Trott admitted on Friday that there was headroom for further increases and this was where more of the burden could fall as the States moved to a balanced budget in the future.

Not all the initiatives announced as part of the Budget have gone down well.

Investigations into incentives to allow more people to work have caused disquiet.

These include exempting for income tax the profits of registered nursery schools to encourage more investment in premises and staff training and introducing a personal allowance for earned income for people working who are over 65.

Deputy Trott was surprised by the reaction.

‘These policies are by no means mandatory, they are just an incentive should people wish to avail themselves of it. We’re not suggesting people should work beyond 65 if they don’t wish to,’ said Deputy Trott.

‘The same is true at the other end of the scale with regard to people requiring nursery care. If people make the choice they want to stay home and look after their children, that’s fine.

‘If the circumstances are such that they wish to use childcare and go out to work, we think it’s sensible to make that process as easy financially as we can.’

Freedom of choice would remain, he added.