Changes to tax system most popular response on survey as Guernsey looks to plug deficit

Guernsey should change its tax system to plug the island's financial black hole, according to a quarter of people who responded to a survey carried out by a States Sub-Committee.

Around 16% suggested it should change the size of the civil service and its use of consultants and external experts.

Another 10% said it should examine how benefits are distributed on the island, while 9% wrote it should revise the number of elected officials and their pay.

637 people responded to the survey, with 1,416 suggestions submitted.

The 'Reducing the Cost of Public Services Sub-Committee' organised the survey as it looks to identify ways it can reduce costs by at least £10 million to £16 million a year within the next five years.

It comes as the latest predictions show the island will be running a deficit of £100 million a year by 2040.

The States says it is facing this problem because of an ageing population combined with a decreasing birth rate and fall in the size of the workforce.

This means there is a growing demand for public services, but the tax intake is getting smaller.

There has been an ongoing debate on the island all year about how it will solve its financial issues.

Proposals to introduce a goods and services tax (GST) were scrapped in February, only to be put back on the table in June.

Want to find out more about the stories making the headlines? Don't miss Channelcast - the Channel Islands current affairs podcast brought to you by ITV News: