GUERNSEY needs to prepare to adapt its financial services business to meet the latest challenges imposed by the UK Government – but the island could still prosper.

THE credibility of the States £31m. cost-cutting programme is being called into question amid concerns over how the savings are being made.

FEARS were raised in the States yesterday that work to start rebuilding La Mare de Carteret High School could be kicked down the road until 2018 – some 16 years after the States promised it would happen.

TREASURY was dealt several blows to its ‘cautious’ Budget plans yesterday.

THE States has been warned it may need to find other ways to fund capital projects after consistently not hitting its annual target of spending 3% of GDP.

TREASURY’S plan to scrap mortgage interest tax relief is not designed to lower house prices, its minister has said.

AN AMENDMENT to defeat Treasury and Resources’ controversial suggestion to phase out mortgage interest tax relief will go before the States, Deputy Matt Fallaize has confirmed.

HOMEOWNERS will be hit hard by this year’s Budget, after Treasury announced plans to scrap mortgage interest relief.

HEALTH and Social Services has failed to meet its 2012 budget, overspending by £1.5m.

Treasury minister Gavin St Pier has released his first budget, describing it as ‘cautious’.