Latest news with #LyndonTrott
BBC News
4 days ago
- Business
- BBC News
Outgoing Guernsey chief minister warns over corporate tax changes
Guernsey's next assembly should not make big changes to the island's corporate tax regime, the outgoing president of Policy and Resources (P&R) has warned. Deputy Lyndon Trott OBE led the campaign to introduce the zero-10 programme in 2008, which means some companies pay no corporation tax and others pay 10%.A number of candidates for the 2025 general election have said Guernsey should move to a zero-15 system or adopt a territorial corporate income tax scheme. "I caution the next States against doing anything unilaterally, only move when those of other size and status are willing to do the same," warned Trott. Proposals to change the island's corporate tax system were rejected on a number of ocassions during the last political States decided eventually to adopt a package of tax reforms, including a 5% GST, a lower income tax rate for earnings under £30,000 and reforms to social security contributions. In a wide-ranging interview with the BBC, before he leaves local politics on 30 June, Trott declared the changes to corporate tax in 2008 were the "biggest challenge" he had said the "damage that we would have done to our community, to our economy, would have been enormous" if the island had not voted for zero-10. Tax rises 'not heresy' Despite the States having agreed to introduce a GST, alongside other tax reforms, Trott suggested the States should look at other changes to make the island's tax system more progressive. He said: "I'm someone who thinks that we pay far too little in terms of income tax. I pay 20%. If 20% means 20% to me, I'd be very happy to pay 22% or even 25%. "There are colleagues of mine who throw their hands up in horror. It's heresy to speak in this way."Deputies rejected proposals from Trott for a temporary increase in the rate of income tax from 20% to 22%. "I genuinely believe in a progressive tax system," commented Trott."In other words, those who can afford to pay should pay. However, we absolutely can't touch the way we treat capital." Covid under-investment When confronted about why zero-10 had not led to greater economic growth, Trott complained that the island had "under-invested" in its infrastructure for "too long".He said: "Part of the problem was Covid. We ran down our reserves during Covid substantially. "We were lucky to have them. And we transferred £150m to support our community from our reserves."During the pandemic, as Vice-President of Policy and Resources, Trott was in charge of the financial support for businesses. He said: "It was essential. "But that is money that we would otherwise have invested directly into our infrastructure, which would have created a far more positive economic downturn than the one we've had."So I'm sort of hiding behind that."He blamed the lack of investment on infrastructure on the island's tax take. He said: "We take something like 21.5% of our GDP in tax. "Jersey takes 26%, the Isle of Man 29% and the UK is nearly 40%. So we are at the very bottom of that league table."
BBC News
5 days ago
- Business
- BBC News
Jersey and Guernsey leaders discuss AI at British-Irish summit
Leaders from Guernsey and Jersey have attended a summit with Irish, UK and other Crown dependency politicians to discuss artificial intelligence (AI).Jersey Chief Minister Lyndon Farnham and Guernsey's Policy and Resources President Lyndon Trott were among the guests at the 43rd British-Irish Council (BIC), which was held in Newcastle, Northern were joined by other leading politicians, including the first ministers of Northern Ireland, Scotland and Wales, Irish Prime Minister Micheál Martin and representatives from theme of the meeting involved potential benefits and challenges of using AI in public administration, the States of Guernsey said. 'A vital forum' The BIC was set up as part of the Good Friday Agreement to promote relationships between the UK, Ireland and Crown said the summit allowed him and Jersey's External Relations Minister Ian Gorst to have "useful conversations" with other leading politicians which could benefit the added: "The British-Irish Council remains a vital forum that brings together member administrations to discuss, and address, our many joint challenges and opportunities."Trott said it was the last BIC summit he would attend before he retired from politics at the end of this month following the election in Guernsey."It has been one of the great honours of my public life to represent Guernsey at the British-Irish Council table over the years during my times as chief minister," he said.
ITV News
13-06-2025
- Business
- ITV News
Guernsey's core government spending was £44 million in deficit in 2024
The States of Guernsey spent £44 million more on core day-to-day activities such as running public services and benefits than it made through income last year. That overspend includes a £22 million deficit in non-infrastructure projects such as IT changes and a £13 million deficit in social security funds. In better news, States' investments were collectively £130 million more valuable at the end of 2024 than 2023. However, this is a valuation rather than a guaranteed return and the funds remain invested in a portfolio that regularly changes value. Overall, the States ongoing financial position is an underlying annual deficit of around £56 million. Want the inside track on the key issues that will shape Guernsey's Election this June? Listen to Guernsey Votes, an ITV Channel podcast packed with expert guests, local insight and analysis you can trust... Guernsey's Chief Minister, Deputy Lyndon Trott, who is not standing in this month's election, says: "The States cannot continue to rely on reserves built up in the past to fund the services of today and tomorrow. "The new Assembly will need to immediately focus its attention on the issue of improving public finances. I cannot stress enough how important that is to the long-term prosperity of the island." The outgoing Vice President of Policy and Resources, Deputy Heidi Soulsby, adds: "We are not raising enough through taxes to fund the services our community relies on. "The value of investments is of course important ... but they don't impact the amount of money we have available to deliver public services and invest in much-needed infrastructure. "The decision for the next States will not be whether something needs to be done, but what should be done to balance the books."
BBC News
13-06-2025
- Business
- BBC News
Guernsey: States report £44m annual deficit in core services
The States of Guernsey's financial position remains "parlous", with a £44m shortfall in core services in 2024, according to Policy and Resources (P&R) President Lyndon comprised of a £9m deficit in General Revenue, £13m in Social Security Funds and £22m in non-infrastructure project spends, such as IT transformation, elements of the revenue service programme and electronic patient Trott gave the update ahead of the General Election, with the total underlying structural annual deficit for 2024 said to be around £56m."In October when we published our 2025 Budget proposals I described the state of public finances as parlous and that remains the case," he said. He said the States "cannot continue to rely on reserves built up in the past to fund the services of today and tomorrow".Deputy Trott said the new Assembly needed to "immediately focus its attention on the issue of improving public finances" adding "I cannot stress enough how important that is to the long-term prosperity of the island".Deputy Heidi Soulsby, Vice President of the Policy and Resources Committee, said the message was that "we are not raising enough through taxes to fund the services our community relies on"."The decision for the next States will not be whether something needs to be done, but what should be done to balance the books," she said the value of investments was important, as was the financial performance of commercial entities under the wider States of Guernsey group, "but they don't impact the amount of money we have available to deliver public services and invest in much-needed infrastructure". "The bottom line is we had a significant deficit in General Revenue last year," she added. Deputy Soulsby said the work the States did earlier in the year "shows a looming need to invest in essential infrastructure projects with funds to pay for only a fraction of that". 'Investment growth higher' News of the deficit came as the States of Guernsey investments were valued £130m higher at the end of 2024 than the previous year. A spokesperson said this did not mean that the public purse received £130m in 2024, but rather their value had increased by 31 December 2024. The 2024 States of Guernsey Accounts were set to be published on 23 March, Deputy Trott said the provisional General Revenue results for 2024 gave a revenue deficit of £9m, which was a shortfall of £21m against the budget.A States spokesperson said the 2024 Accounts were the first to be fully compliant with International Public Sector Accounting Standards and to be given a "true and fair" view by the auditors.
BBC News
22-05-2025
- Business
- BBC News
Guernsey chief minister "embarrassed" by ferry spat
Guernsey's chief minister has said he was embarrassed by a spat between Channel Island politicians over proposals for an inter island ferry follows a disagreement between Guernsey's head of economic development Neil Inder and Jersey's economic development minister Kirsten Morel over a possible solution to provide freight transport links between the a Chamber Of Commerce lunch, the chief ministers of Guernsey and Jersey were asked if they were embarrassed by the row between their economic development Lyndon Farnham said he was "disappointed but not embarrassed" while Guernsey's Lyndon Trott said he was "more embarrassed than Deputy Farnham". The chief ministers were talking to business leaders in Guernsey about the importance of inter-island cooperation on Wednesday when they were asked about the disagreement between Morel and had said he was angry Morel had told the media Guernsey did not seem as positive as Jersey over the inter island ferry plan proposed to them by FerryBridge. 'Disappointed but not embarrassed' Guernsey's chief minister Lyndon Trott told the BBC he was embarrassed by the spat. "One of the first things I learnt in politics is that there are few things that can't be sorted out over a cup of tea but also it's important that proper business is not conducted on the front page of the local newspapers," he said." I think while the spat was regrettable, the positions are held strongly."However Trott insisted inter island relationships were stronger than ever."The good news is there is an overwhelming amount of time we spend working cooperatively, collaboratively and positively and I genuinely expect that to continue significantly into the future," he said he was "disappointed" but not "embarrassed" by the disagreement and it was important the islands looked at moving forward."What we have to do now is work together to ensure, in the fullness of time, that we can get an improved inter island service for passengers and cars," he said."I'm sure that Brittany Ferries and DFDS and Jersey and Guernsey are committed to that and we have other third party operators that want to come in and provide services." However, Murray Norton, the head of Jersey's Chamber of Commerce, described the spat as "politically immature"."I think it's disappointing for Channel Island collaboration and I think its fairly unfitting of two politicians, whilst they might have deep seated views of their own island and we all have those," said Mr Norton. "But we've got to see the bigger picture and we look at our politicians to act much more maturely and to act a little bit more dignified I think."Inder is one of 82 candidates standing in Guernsey's general election - see a full list here.
