Deputy vows to keep trying in efforts to block GST

Harry WhiteheadGuernsey
News imageBBC A man with short grey hair looking at the camera. He is wearing a light pink shirt with a navy tie that has light blue and red stripes. He has a pinstripe blazer on.BBC
Deputy Liam McKenna stood on an anti-GST manifesto during the 2025 general election

A Guernsey deputy who is against the introduction of a goods and services tax (GST) has said he will keep trying to take the debate off the political agenda.

Deputy Liam McKenna had attempted to stop the debate in February's States sitting but his proposal was heavily defeated with just five votes in favour.

He said: "We'll bring it back again and again... and if it still doesn't get listened to, and if the people are going to vote me back in, I'll bring it back again because it is wrong."

Policy & Resources (P&R) President Lindsay de Sausmarez said the 2008 financial crisis, Covid and Brexit had all affected the island's income and public savings were "running dry".

Last month deputies voted in favour of the preferred P&R option to include food in a 5% GST.

It is to be introduced alongside a 15% rate of income tax for earnings under £32,400, reforms to social security contributions and higher income tax allowances, which were all agreed in 2024.

McKenna argued the government needed to learn to spend wisely before taxing people more.

He cited the axing of a contract with IT provider Agilisys and the MyGov project as evidence where money had been wasted by the States.

"We've just spent four years of hard-working people's money," he said.

"Back in the '70s and '80s we were living month to month, now we're living day to day."

De Sausmarez said demand for public services was increasing due to an ageing population, putting a strain on finances.

"We've been having to dip into our savings account for the last 20 years, which was only supposed to be a short-term measure," she said.

McKenna said he was disappointed about the result of the vote last month.

"What I was trying to explain to the deputies was it wasn't me bringing it to the table, it was the 7,000 plus good people of Guernsey who voted me in on a no GST mandate to carry out their wishes," he said.

Deputy Gavin St Pier, P&R Vice-President, said he was pleased with the support the GST package had received so far.

"The ball is now firmly back with Policy and Resources to complete the rest of the work of the tax review sub-committee looking at corporate issues and pull it all together for a debate in July," he said.

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