Surplus up to £70m.

Tuesday 22nd April 2008, 2:30PM BST.

FEARS that public finances would suffer under zero-10 have been eased today. The new States, to be elected tomorrow, will have a surplus of £70m.

This is almost double what had been estimated when it was decided to scrap corporation tax from January and introduce the new tax strategy.

Measures to make up the shortfall included reducing public expenditure and replacing Tax on Rateable Value with Tax on Real Property with the hope that income tax receipts would remain strong. Figures presented to the Policy Council yesterday reveal that total revenue income was a record £365m. That is £26m. ahead of budget.

In addition, the States has also trimmed spending by £6m. to £295m. against a budget of £301m. The amount of income tax collected was up by more than 7% on budget at more than £137m.

View more: Public Expenditure news, Public Finances news, Tax Strategy news.

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Stephen John

April 22, 2008 at 3:16 pm

Just looked at your figures against those in the 2008 budget published just five months ago

Just how much we can rely on the few figures given in today’s Press is open to doubt.

The budget figures for total income in 2008 (put to the States just five months ago) was £306million.

Yet, within a few months and days before an election we see the claim that income is £26million above budget at £365 million.. This cannot be for the current year but for 2007 when the budget figure for income was £351million.

So .how real is the £70 million surplus? And for what year?

There is a clue in the figures for cutting expenditure. The Press says “In addition, the States has also trimmed spending by £6m. to £295m.against a budget of £301m”

The 2007 budget accounts however already included this “new” non news. Have a look at page 4 of the 2008 Budget figure.

This looks more and more like a PR stunt.

Nothing really new and 2007 figures which we knew would have a windfall effect.

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