Policy & Resources Committee - P.2023/101
Original Propositions
- The States are asked to decide:-
- Whether, after consideration of the policy letter entitled 'Funding & Investment Plan' dated 18th August 2023, they are of the opinion:-
- 1. To agree that the financial position of the States requires urgent attention and that, as a bare minimum, the following core measures should be agreed which will temporarily stabilise the position:-
- a. implementing the package of core cost reduction targets and revenue raising measures set out in Appendix 1;
- b. maintaining the current level of the General Revenue Reserve in this term;
- c. investing up to £95m to complete the 'in flight' capital schemes as set out in Appendix 1; and
- d. investing in the policy, strategies and plans agreed as part of the Government Work Plan over the remainder of this term of government;
- and to authorise the Policy & Resources Committee to implement these agreed measures.
- AND IF PROPOSITION 1 IS APPROVED:-
- SCENARIO 3
- 2. To agree that the States shall address the current and future expected structural deficit and historical chronic under-investment in public infrastructure by way of the following measures:-
- a. implementing the full progressive tax and benefits package as proposed to the States in early 2023 (see item 5, entitled "The Tax Review: Phase 2, P.2022/112" on Billet d'État No. III of 2023 P.2022/112) and set out in Appendix 1, in order to put the finances of the States into a sustainable position thereby being able to afford future capital investment, address the deficit and begin to rebuild reserves;
- b. agreeing that the Policy & Resources Committee should work with Principal Committees to develop a plan for the use of ringfenced funds of £2.5m per annum for social and community benefit, as set out in Paragraph 8.2 of this policy letter;
- c. adopting Portfolio 3 estimated at a total of £520m (including the in-flight schemes), as set out in Appendix 1, as the agreed major capital investment portfolio for the remainder of this term;
- d. on the basis that funding available is insufficient to fund Portfolio 3, agreeing therefore that new borrowing should be taken out to support the funding of major capital expenditure; and
- e. increasing the authority granted to the Policy & Resources Committee in Resolution 16 on item 1, entitled "Government Work Plan 2021-2025, 2021/71", of Billet d'État No. XV dated 21st June 2021, to enable the Committee to take out new borrowing to a maximum of £350m;
- and to authorise the Policy & Resources Committee to implement these agreed measures.
- OR IF PROPOSITION 1 IS APPROVED BUT PROPOSITION 2 IS NOT APPROVED:-
- SCENARIO 2
- 3. To agree that the States shall address historical chronic under-investment in public infrastructure by way of the following measures:-
- a. adopting Portfolio 2 estimated at £440m (including the in-flight schemes), as set out in Appendix 1, as the agreed major capital investment portfolio for the remainder of this term;
- b. on the basis that funding available is insufficient to fund Portfolio 2, agreeing therefore that new borrowing should be taken out to support the funding of capital expenditure and that the balance of the Health Service Reserve should be used to fund the Our Hospital Modernisation Programme; and
- c. reaffirming the authority granted to the Policy & Resources Committee in Resolution 16 on item 1, entitled "Government Work Plan 2021-2025, 2021/71", of Billet d'État No. XV dated 21st June 2021, to take out new borrowing to a maximum of £200m;
- and to authorise the Policy & Resources Committee to implement these agreed measures and direct it to return to the States by September 2026 with proposals for addressing the deficit and putting the finances of the States into a sustainable position.
- OR IF PROPOSITION 1 IS APPROVED BUT PROPOSITIONS 2 AND 3 ARE NOT APPROVED:-
- SCENARIO 1
- 4. To agree that the States shall limit investment in public infrastructure to critical investment only until such time as measures are agreed to address the structural deficit and to:-
- a. adopt Portfolio 1 capped at £190m (including the in-flight schemes), as set out in Appendix 1, as the agreed capital investment portfolio for the remainder of this term;
- b. limit major capital expenditure to funds of £190m available from within existing reserves; and
- c. rescind Resolution 16 on item 1, entitled "Government Work Plan 2021-2025, 2021/71", of Billet d'État No XV dated 21st June 2021 authorising the Policy & Resources Committee to take out new borrowing to a maximum of £200m;
- and to authorise the Policy & Resources Committee to implement these agreed measures and direct it to return to the States by September 2026 with proposals for addressing the deficit and putting the finances of the States into a sustainable position.
- AND, ONLY IF PROPOSITION 2 IS APPROVED TO AGREE
- EITHER:
- 5. As part of the package of progressive measures as set out in Scenario 3 in Appendix 1, to introduce a broad-based Goods and Services Tax at a rate of 5%, as laid out in Section 8 of this policy letter, with minimal exemptions and zero rating.
- OR:
- 6. As part of the package of progressive measures as set out in Scenario 3 in Appendix 1, to introduce a broad-based Goods and Services Tax at a rate of 6% with minimal exemptions and zero rating excepting that a zero rate should be applied to food and non-alcoholic drink products, as laid out in Section 8 of this policy letter.
- AND IF PROPOSITION 5 OR 6 IS APPROVED
- 7. To agree that the legislation implementing the introduction of Goods and Services Tax shall come into force on 1 January 2026 and remain in force until 31 December 2032, unless extended for such periods as the States may by Resolution determine following recommendations by the Policy & Resources Committee.
- AND
- 8. To direct the preparation of such legislation as may be necessary to give effect to the above decisions
Propositions (as amended) to be voted on
Amendments
Amendment Proposer Seconder Status Amendment 1 [232kb]
Deputy Roffey Deputy Matthews Carried
Voting RecordDeputy Roffey Deputy de Sausmarez Carried
Voting RecordDeputy St Pier Deputy Vermeulen Lost
Voting RecordDeputy Soulsby Deputy St Pier Lost
Voting RecordDeputy Kazantseva-Miller Deputy de Sausmarez Carried
Voting RecordDeputy Brouard Deputy Bury Carried
Voting RecordDeputy Parkinson Deputy McKenna Lost
Voting RecordDeputy Matthews Deputy Roffey Not laid Deputy Trott Deputy Gollop Lost
Voting RecordDeputy Matthews Deputy Roffey Lost
Voting RecordDeputy Taylor Deputy St Pier Carried
Voting RecordDeputy Helyar Deputy Ferbrache Carried
Voting Record
