Warning over Guernsey's finances as bank may recoup £31M in taxes already paid

Wednesday, 25 September 2024 13:15

The island's senior politician alerts the States to an increasing budget deficit and a one off tax issue with an unnamed bank.

Deputy Lyndon Trott, who heads up Policy and Resources, told the Assembly that there had been "some more unwelcome news."

He said that Revenue Services had what's called 'an error or mistake claim' from a bank, dating back to 2018, totalling £15M. Added to this is another potential £16M in tax already paid, making £31M.

The claim is being checked, but deputy Trott warned that provision needs to be made before a repayment is due.

Deputy Trott said that Revenue Services was not to blame, and it would not impact future tax receipts from the bank concerned:

"I am as confident as I can be that there will be no further unpleasant surprises.

So, an already challenging year has now become fifteen million pounds worse potentially."

Updating the Assembly on finances generally, he painted a gloomy picture.

He said a forecast general revenue budget surplus of £11M for the year is now a £24M deficit. But when the trading boards and the social security accounts are added in, the deficit totals £46M.

The Health Committee is, deputy Trott said, already £2M over budget but may reach £4.5M by year end.

Later in this meeting, deputies will decide whether to rubber stamp the purchase of Airtel by Sure. For that to happen, deputies have to vote for a short exemption to the competition law.

Jersey's regulator has approved the deal and Sure has agreed to invest in both infrastructure and 5G as part of the small print.

Three way consumer choice will be maintained, as the Co-Op will enter the mobile market.