Summary
Guernsey's 2026 budget plan includes tax changes such as introducing a new vape tax and increasing personal income tax allowances. These measures aim to address a financial deficit and support residents with living costs. The budget emphasizes fiscal balance by proposing modest tax increases and expenditure reductions.
Key Facts
- The budget proposes a £600 increase in personal income tax allowances to help with living costs.
- A new tax on vape liquid will be introduced at £2.20 per 10ml.
- Tax increases include a 13.7% rise on tobacco and higher duties on fuel and domestic properties.
- Personal income tax allowances could increase to £15,200.
- Guernsey State's deficit is attributed to a shrinking workforce, increased health service demand, and longer life expectancy.
- A £48m financial deficit is projected, with only £1.2m in revenue-raising measures currently outlined.
- The budget aims to boost the rental sector by removing extra document duty on property transactions not involving a principal residence.
- Committees have been asked to find £4m of savings despite requests for more funding.
