Derelict property tax, alcohol duty, and healthcare: Guernsey's 2024 budget revealed

The budget announced that Guernsey would finish next year with a £50 million deficit if planned infrastructure spending goes ahead Credit: ITV Channel

Guernsey's 2024 budget has been announced with a raft of new policies unveiled including a tax on derelict greenhouses and unoccupied properties as well as a hike on the price of alcohol, cigarettes and fuel.

It predicted that the treasury will have a small surplus of £24 million next year, but if planned infrastructure spending goes ahead- it will end the year with a £50 million deficit.

Recommendations from the Policy and Resources Committee will come into effect such as an increase in the levy on alcohol by 5.9% from January 1 2024, along with increases for fuel and tobacco.

Caps on income tax will also be raised in an effort to produce more revenue, with the cap rising to £160,000 for non-Guernsey source income, and to £320,000 for worldwide income.

The threshold for withdrawal of personal tax allowances will be reduced to £80,000.

Health and Social Care will also be granted a £4 million increase to their budget but it was also acknowledged there were "significant challenges" for the department to "deliver within budget due to rising demand.

New taxes will also come into force on unoccupied houses at five times the normal rate of property tax.

A property is classed as "unoccupied" when it has not been used by someone as their personal private residence for at least six months, with some exceptions taken into account.

The same rate of tax will also be applied to derelict greenhouses across the island, with the aim behind the proposal being for the "derelict sites to be cleared".

It was also pointed out that when it came to public spending, various savings that had been made would not be enough to offset rising inflation and "growing cost pressures".

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