Cash surplus more than expected

Guernsey's government had more money left in its coffers last year than previously expected.

It was thought there would be a surplus of about £12m - much less than previous years - because of the introduction of the zero-ten tax strategy in 2008.

But the States accounts for 2008 show a surplus of £52m, mainly due to companies paying tax relating to previous years.

Treasury and Resources said a deficit was still expected for 2009.

The zero-ten strategy, which charges some companies no corporation tax and others 10% tax, was introduced in January last year with the aim of attracting more business to the Bailiwick.

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