States criticised for ‘inaction’ over improving public finances
Thursday 21st February 2013, 11:00AM GMT.
STATES incomes have fallen nearly 5% in cash terms since the introduction of zero-10 corporate tax in 2008.
States revenue income in 2007, the last full year before the tax changes, was £365m. In 2011 income was just £347m. – still representing a significant recovery from £331m. in 2010.
Public incomes are budgeted to recover and move ahead of the 2007 figure for the first time this year.
Yet Ernst & Young tax partner Graham Parrott has expressed surprise that the States – having identified in March 2009 the need for ‘urgent action to reduce the structural deficit’ – has barely taken action to improve public finances.