Taxes may rise to cover deficit

The treasury minister said a range of options would be considered

Income tax could rise in Guernsey as the island's government considers ways to balance its books.

As economic forecasts worsen, the deficit in the States finances could rise to �65m a year.

The cost of fuel may also rise substantially and mortgage tax relief could be cut.

Treasury Minister Charles Parkinson said the deficit was a big problem, and an intensely difficult political process lay ahead.

There is a range of options we will be considering Treasury Minister Charles Parkinson

States members are due to meet in November to discuss ways of meeting the shortfall.

Other options which may be considered include a doubling in tax on rateable value and the introduction of a goods and services tax.

Mr Parkison said: "We could need �52m a year of new or additional taxes, so there is a range of options we will be considering later this year.

The minister said at this stage his department was signalling that there was a "big problem" with the deficit in public finances.

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