Policy & Resources Committee - P.2019/104
Amendment 1 - Deputy Soulsby & Deputy Le Clerc [226kb] Amendment 2 - Deputy Soulsby & Deputy McSwiggan [228kb] Amendment 3- Deputy Dorey & Deputy McSwiggan [231kb] Amendment 4 - Deputy Dorey & Deputy McSwiggan [303kb] Amendment 6 - Deputy Tindall & Deputy Queripel [271kb] Amendment 7 - Deputy Merrett & Deputy Hansmann Rouxel [439kb] Amendment 8 - Deputy Trott & Deputy de Sausmarez [313kb] Amendment 9 - Deputy McSwiggan & Deputy Tindall [350kb] Amendment 10 - Deputy Le Clerc & Deputy Langlois [652kb] Amendment 11 - Deputy Gollop & Deputy McSwiggan [306kb] Amendment 12 - Deputy Brehaut & Deputy Dorey [308kb] Amendment 13 - Deputy Lowe & Deputy Leadbeater [270kb] Amendment 14 - Deputy Lowe & Deputy Leadbeater [366kb] Amendment 15 - Deputy Lowe & Deputy Leadbeater [273kb]
The States are asked to decide:-
Whether, after consideration of the States of Guernsey Annual Budget for 2020, they are of the opinion:-
1. To endorse the intention of the Policy & Resources Committee to submit a policy letter to the States for consideration no later than March 2020 reporting on the findings of the review of the terms and conditions of public sector workers, together with any recommendations in respect of the remuneration of employees based on the principles of fair and equal pay.
2. To endorse the intention of the Policy & Resources Committee to submit a revised "Review of the Fiscal Policy Framework" policy letter to the States for consideration no later than January 2020 including:
(a) Terms of reference for a review to examine options to raise further revenues from corporate taxes and the introduction of new taxes in areas such as a ring-fenced health tax, consumption taxes, etc. in order to raise sufficient revenues.
(b) Addressing what the appropriate long-term aggregate limit on States' revenues (including all forms of taxation and social insurance contributions) should be, taking into account the known and estimated long-term pressures; and
3. To authorise the Policy & Resources Committee to make transfers from the General Revenue Account Reserve to the Budget Reserve until 31 December 2019.
4. To note that the £26.1million of savings projected in the Medium Term Financial Plan will not be fully realised by the end of 2021 and to agree that public service reform activity must continue to generate reform dividends in order to contribute towards balancing the budget.
5. To authorise the Policy & Resources Committee to transfer the sum of £40million from General Revenue to the Capital Reserve during 2020.
6. To approve that returns of capital from the States' trading assets and capital income in 2020 be transferred to the Capital Reserve.
7. To immediately transfer the sum of £900,000 from the General Reserve to the Future Guernsey Economic Fund.
8. To note the use of £3.34million of the General Reserve to increase the 2020 budgets of the Committee for Education, Sport & Culture (£3.065million) and the Committee forHome Affairs (£275,000).
9. To increase the authority delegated to the Policy & Resources Committee to approve funding from the Transformation and Transition Fund for the People Plan by £500,000 to £1.25million.
10. To increase the authority delegated to the Policy & Resources Committee to approve funding from the Transformation and Transition Fund for Public Service Reform by £1million to £3.1million.
11. To extend the company higher rate tax (20%) to:
(a)Income from the licensed activity of cultivation of cannabis plants, and income from the use of those cultivated cannabis plants or parts of those cultivated cannabis plants for -
(i) any other licensed activity or use, and
(ii) any licensed processing, or
(iii) any licensed production of industrial hemp, supplements, cannabidiol, fibre, medicinal products or other products,
(b) where prescribed by regulations of the Policy & Resources Committee, income from -
(i) the licensed production of controlled drugs,
(ii) and the use of those controlled drugs (produced under license) or parts of those controlled drugs for any licensed activity or use,
and to direct the preparation of such legislation as may be necessary to give effect to this decision with effect from 1 January 2020.
12. To extend the company intermediate income tax rate (10%) to the income from the activity of operating an aircraft registry, and to direct the preparation of such legislation as may be necessary to give effect to this decision with effect from 1 January 2020.
13. To agree that the annual tax-free lump sum limit for a pension scheme is set at £203,000 for 2020.
14. To endorse the intention of the Policy & Resources Committee to increase the Benefit in Kind charges with effect from 1 January 2020, by 2.5% per annum, compounded, for 2020, 2021 and 2022, as set out in paragraph 6.36 of this Report, by regulation under powers conferred by section 8(2A)(b) of the Income Tax (Guernsey) Law, 1975.
15. To amend the Income Tax (Guernsey) Law, 1975 to clarify that an individual electing to pay the standard charge remains liable to Guernsey income tax on his or her worldwide income, and to direct the preparation of such legislation as may be necessary to give effect to this decision with effect from 1 January 2020.
16. To amend the Sixth Schedule of the Income Tax (Guernsey) Law, 1975 to exclude from the tax cap-
(a) triviality payments, and
(b) such amounts of lump sum payments from pension schemes or annuity schemes which are chargeable to tax as being over the tax-free limit,
which derive from Guernsey tax-relieved contributions.
17. That,
(a) subject to the provisions of the Income Tax (Guernsey) Law, 1975 and to the provisions of this Proposition, the allowances claimable for the Year of Charge 2020 by an individual solely or principally resident in Guernsey by way of relief from income tax at the individual standard rate, shall be the allowances specified in the First Schedule to this proposition;
(b) the allowances specified in the First Schedule to this Proposition shall only be granted to an individual who has made a claim in accordance with the provisions of the Income Tax (Guernsey) Law, 1975 and who has proved the conditions applicable to such allowances and prescribed in the Second Schedule to this Proposition have been fulfilled;
(c) "Family Allowances" means Family Allowances payable under the Family Allowances (Guernsey) Law, 1950 as amended; and
(d) "the income Tax (Guernsey) Law, 1975" means that Law as amended, extended or applied by or under any other enactment.
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