Reaction as Guernsey States rejects proposals to introduce GST

  • Deputy Peter Ferbrache speaks to ITV News over calls for him to resign after politicians failed to back his GST plan

Guernsey's Chief Minister says the people of the island have been "let down" after states members rejected proposals to introduce a Goods and Services Tax (GST).

Policy and Resources' preferred plans for a 5% GST alongside higher income tax allowances were defeated by 25 votes to 15.

  • ITV Channel's Emma Volney gathers reaction after the plan for a Guernsey Goods and Services Tax wasn't supported by politicians

Deputy Peter Ferbrache told ITV News: "I am disappointed and frustrated. Six days, two years of work for people, and what have we decided? Absolutely nothing.

"We'll leave it for a week or so to let the dust settle and let people gather their thoughts, then we'll meet and decide what the next step is."

The closest vote came on Deputy Heidi Soulsby's 'Fairer Alternative' option, the first part of which received 20 votes for and 20 against and "lost on a technicality".

All three other options for raising revenue were heavily defeated, which means states members will have to go back to the drawing board.

The island needs to raise £85m to plug the island's financial 'black hole'.

Deputy Peter Roffey, who voted in favour of GST, said: "The problem hasn't gone away, so basically it's back to the drawing board.

"We have to start tackling this £85m black hole and, if the states aren't willing to at least move part of the way towards doing that, then frankly we're not fit to govern."