A Better Way: Rethinking GST-plus
It’s clear that the majority of the public still oppose GST-plus—and I’ve always been one of those people. I just don’t think it’s the right answer for Guernsey.
Supporters say the wider package of exemptions and support makes it fairer than a standard GST—but that hasn’t convinced most islanders. There’s still a real risk it hits working families and pensioners hardest, and right now, people are already feeling the strain.
We’re heading towards GST-plus in 2027, because that’s what the States has agreed. But that doesn’t mean we have to accept it in its current form. There’s still time to explore better options—either to replace it altogether or to ease the burden on the public.
And whatever the outcome, we need to take islanders with us.
What We Can Learn from Jersey
Before we follow the same route, let’s take a serious look at what’s happened in Jersey, where GST was brought in back in 2008.
Here’s the reality:
- It started at 3%, but didn’t stay there long—it went up to 5% pretty quickly.
- Small businesses have warned it’s a burden, especially in terms of admin.
- The Jersey Consumer Council found that GST still added to the cost of everyday essentials, despite exemptions.
- And even with GST in place, Jersey still faces major cost-of-living and budget issues.
So has it really delivered what was promised? We should be asking that before committing Guernsey to the same route.
A Better Way Forward
Instead of pushing ahead with a plan that many islanders don’t support, I’m calling for a proper rethink—through a Revenue Reform Commission.
This would be an expert group tasked with looking at credible alternatives to GST-plus—whether that means replacing it altogether or finding ways to significantly reduce its impact on the public.
It should bring together a mix of voices, including:
- An economist from Guernsey’s Fiscal Policy Panel (as Chair)
- People from the finance and small business sectors
- Legal and social policy experts
- Deputies from both sides of the debate
- And—most importantly—members of the public, so islanders are involved every step of the way
It must be open, independent, and guided by proper data, modelling, and public engagement.
What About Corporate Tax?
One option we haven’t explored properly is Pillar 2 corporate tax—a new global system to make sure large multinational companies pay their fair share.
If it brings in anything close to £40 million a year, that could completely change the financial picture and remove the need for GST-plus—or at the very least, soften its impact dramatically.
But so far, we haven’t seen detailed modelling or any open debate on this.
That’s exactly what this commission should be doing—looking at all the options before locking us into a major new tax.
What I’m Calling For
- Explore alternatives that could replace GST-plus entirely or ease the pressure it puts on islanders
- Create a Revenue Reform Commission with broad expertise and real public involvement
- Properly examine Pillar 2 corporate tax and other fairer revenue sources
- Learn from Jersey’s experience, so we don’t repeat the same mistakes
- And if no better solution is found? At least islanders will know we turned over every stone and made an informed choice
Tax reform is too important to get wrong. Let’s take the time to get it right—for everyone.
Proposed Membership of the Revenue Reform Commission
| Role | Suggested Composition | Purpose/Expertise |
|---|---|---|
| Chairperson (Economist) | A senior economist from Guernsey’s Fiscal Policy Panel | Brings macroeconomic authority and public trust; leads the Commission with neutrality |
| Fiscal Policy Panel Economist | 1 additional FPP member or academic economist | Supports economic modelling and scenario testing of tax options |
| Finance Sector Representative | Guernsey Finance nominee or Chamber of Commerce | Ensures awareness of industry impacts, especially on international competitiveness |
| Legal Expert | Member of the Guernsey Bar with tax/regulatory experience | Advises on legal structure, compliance, and international obligations |
| Social Policy Expert | Representative from third sector or social research field | Ensures analysis includes effects on low-income groups and equity considerations |
| Small Business Representative | Federation of Small Businesses or local retail figure | Reflects practical challenges and opportunities for the local business community |
| Public Engagement Lead | Experienced communicator or policy academic | Designs and runs public consultation process to ensure transparency and legitimacy |
| States Deputy (Observer) | 1–2 elected Deputies (non-voting) | Maintains democratic accountability and provides link to the Assembly |