Bank tax receipts boost the States of Guernsey's fortunes

Wednesday, 25 February 2026 12:45

Public finances have been delivered a £36M windfall but with a warning that it cannot be counted on regularly.

Guernsey's financial position for 2025 is looking healthy at £36M, after a large and unaccounted for tax receipt from a local bank.

Delivering his update to the Assembly, Policy and Resources' Deputy Gavin St Pier said it was welcome news, but could not be counted on annually:

"This additional revenue is exceptional and cannot be built into our baseline and relied upon in future years.

"It's a windfall and is significant for this year, but unlikely to be repeated next year or in future years and not significantly material to the long term financial position of the States."

Deputy Mark Helyar asked whether it was possible to better determine the money expected from banks:

"One of the difficulties we're finding in the GST debate is that the public is saying you're just not collecting the tax you're due at the moment so why on earth would we pay you any more?

"I think it would be very helpful to members present if we knew how much tax has not been collected."

Deputy St Pier said he would look into this.

The use of the phrase GST is interesting, as during the March sitting, deputies will decide whether food is included in a consumption tax at 5%, that could be introduced in 2027.

Deputy St Pier told members the investigation into two failed States' IT projects, costing £42M collectively, should be ready to report publicly by April this year.

He said that Revenue Services, which deals with tax, continues to experience IT issues and staff are still having to use some manual workarounds.

However, he said the department's new joint head had worked out a credible route back to efficiency.

It has been agreed that local expertise should be used to help oversee major States projects and deputy St Pier described this as an open invitation with people with the right qualifications and experience.

Work has been paused on a new States website while it is decided how it can be managed effectively.