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| Vape tax plan confirmed in Guernsey 2026 budget | Vape tax plan confirmed in Guernsey 2026 budget |
| (about 4 hours later) | |
| Deputy Lindsay de Sausmarez said a £600 increase in personal income tax allowances would help people with the cost of living | Deputy Lindsay de Sausmarez said a £600 increase in personal income tax allowances would help people with the cost of living |
| Further tax breaks for landlords, new taxes on vaping and higher personal income tax allowances could all be agreed next month as part of Policy and Resources' (P&R) budget for 2026. | Further tax breaks for landlords, new taxes on vaping and higher personal income tax allowances could all be agreed next month as part of Policy and Resources' (P&R) budget for 2026. |
| In setting out the budget, P&R stated the States faced a deficit of £48m and that "long-term structural balance must remain the primary focus of this assembly". | In setting out the budget, P&R stated the States faced a deficit of £48m and that "long-term structural balance must remain the primary focus of this assembly". |
| Despite this, only £1.2m in revenue-raising measures have been proposed, including above-inflation increases to taxes on cigarettes, petrol, and property. | Despite this, only £1.2m in revenue-raising measures have been proposed, including above-inflation increases to taxes on cigarettes, petrol, and property. |
| P&R President Lindsay de Sausmarez described the 2025 budget as "not exciting". | P&R President Lindsay de Sausmarez described the 2025 budget as "not exciting". |
| A decision on broader tax reform - including whether GST [goods and sales tax] should apply to food, and whether companies should pay more tax on their income - is expected before June next year. | A decision on broader tax reform - including whether GST [goods and sales tax] should apply to food, and whether companies should pay more tax on their income - is expected before June next year. |
| Why is there a deficit? | Why is there a deficit? |
| De Sausmarez blamed a shrinking working population, increased demand on health services and the fact people were living longer locally for the island's financial challenges. | De Sausmarez blamed a shrinking working population, increased demand on health services and the fact people were living longer locally for the island's financial challenges. |
| He said: "To balance the books, we're proposing some modest increases in some taxes and duties, combined with some savings through reductions in expenditure." | He said: "To balance the books, we're proposing some modest increases in some taxes and duties, combined with some savings through reductions in expenditure." |
| Last month, the BBC reported that committees had asked for about £30m above their budgets and had been rebuffed, with P&R Vice-president Gavin St Pier having labelled the requests "completely unaffordable". | Last month, the BBC reported that committees had asked for about £30m above their budgets and had been rebuffed, with P&R Vice-president Gavin St Pier having labelled the requests "completely unaffordable". |
| Upon publishing the budget, De Sausmarez said: "Committees have not been given all that they have asked for, but we hope our colleagues appreciate the need for fiscal restraint in the current circumstances." | Upon publishing the budget, De Sausmarez said: "Committees have not been given all that they have asked for, but we hope our colleagues appreciate the need for fiscal restraint in the current circumstances." |
| Budget 2026 in under 60 seconds | Budget 2026 in under 60 seconds |
| P&R has recommended increases for committees of £12m above the initial cash limits. | P&R has recommended increases for committees of £12m above the initial cash limits. |
| The States' chief executive has been tasked with finding £4m of savings next year. | The States' chief executive has been tasked with finding £4m of savings next year. |
| Tax breaks for landlords | Tax breaks for landlords |
| If the budget is approved at the States meeting starting on 4 November, the increased rate of document duty for property transactions that are not people's principal residence will be removed. | If the budget is approved at the States meeting starting on 4 November, the increased rate of document duty for property transactions that are not people's principal residence will be removed. |
| The move is to try and stimulate the island's rental sector where, according to De Sausmarez, a lack of rental stock had been causing rents to rocket. | The move is to try and stimulate the island's rental sector where, according to De Sausmarez, a lack of rental stock had been causing rents to rocket. |
| Recent figures showed the average local market rent was £2,068 a month in the first quarter of 2025 - 1.5% higher than the previous quarter, 8.2% higher than the first quarter of 2024 and 51.7% higher than five years ago. | Recent figures showed the average local market rent was £2,068 a month in the first quarter of 2025 - 1.5% higher than the previous quarter, 8.2% higher than the first quarter of 2024 and 51.7% higher than five years ago. |
| As part of the 2026 budget, in an effort to improve the quality of rental properties, the tax relief which can be claimed for property maintenance by landlords could also increase. | As part of the 2026 budget, in an effort to improve the quality of rental properties, the tax relief which can be claimed for property maintenance by landlords could also increase. |
| What's going up? | What's going up? |
| The amount of money people take home in their pay packet is set to go up, as personal income tax allowances could increase by £600 to £15,200. | The amount of money people take home in their pay packet is set to go up, as personal income tax allowances could increase by £600 to £15,200. |
| De Sauamarez said this was the primary measure in the budget to support people with the cost of living. | De Sauamarez said this was the primary measure in the budget to support people with the cost of living. |
| Tax on tobacco will increase by 13.7%, which equates to an extra £1.12 on a pack of cigarettes; while fuel duty is increasing at a rate higher than the cost of living is increasing, meaning a litre of petrol on average will cost 3.7p more. | Tax on tobacco will increase by 13.7%, which equates to an extra £1.12 on a pack of cigarettes; while fuel duty is increasing at a rate higher than the cost of living is increasing, meaning a litre of petrol on average will cost 3.7p more. |
| Domestic property tax is also set for an above-inflation increase to 8.3%, with commercial rates set to increase by 5%. | |
| As previously reported by the BBC, a new tax of £2.20 per 10ml of vape liquid is set to be introduced, with retailers saying they were "concerned" about the impact on the local industry. | As previously reported by the BBC, a new tax of £2.20 per 10ml of vape liquid is set to be introduced, with retailers saying they were "concerned" about the impact on the local industry. |
| Registering a new car could cost more next year as well, with the first registration duty going up by 8.7%. | Registering a new car could cost more next year as well, with the first registration duty going up by 8.7%. |
| What does it mean for GST? | What does it mean for GST? |
| The big levers of taxation are not being touched in this budget, as a review of the island's corporate tax system and the planned introduction of a GST are currently under way. | The big levers of taxation are not being touched in this budget, as a review of the island's corporate tax system and the planned introduction of a GST are currently under way. |
| Decisions on major infrastructure projects including whether the States will build a new dairy will be made next year. | Decisions on major infrastructure projects including whether the States will build a new dairy will be made next year. |
| One project which has secured funding in the budget is the island's only sexual assault referral centre, which had originally been funded until the end of 2025. | One project which has secured funding in the budget is the island's only sexual assault referral centre, which had originally been funded until the end of 2025. |
| Is there opposition? | Is there opposition? |
| Committee presidents have largely reacted positively to the budget. | Committee presidents have largely reacted positively to the budget. |
| Deputy Steve Williams, who is leading the new Committee for Housing, said: "P&R have responded positively by dropping the extra document duty on investors, creating more new private rented housing, thereby encouraging more investment in this housing. | Deputy Steve Williams, who is leading the new Committee for Housing, said: "P&R have responded positively by dropping the extra document duty on investors, creating more new private rented housing, thereby encouraging more investment in this housing. |
| "Overall, it is positive support in a tight financial climate." | "Overall, it is positive support in a tight financial climate." |
| However, President of the Scrutiny Management Committee Deputy Andy Sloan confirmed he would not be voting for the budget, saying: "This isn't a leaving-no-stone unturned budget. It's not even the 1% annual efficiency gains promised by Forward Guernsey. | However, President of the Scrutiny Management Committee Deputy Andy Sloan confirmed he would not be voting for the budget, saying: "This isn't a leaving-no-stone unturned budget. It's not even the 1% annual efficiency gains promised by Forward Guernsey. |
| "Committee spending in real terms is more than a third higher than it was 10 years ago. | "Committee spending in real terms is more than a third higher than it was 10 years ago. |
| "Forget the narrative that the revenue budget is nearly balanced this year - the real story is that we have a funding shortfall of £115m next year. | "Forget the narrative that the revenue budget is nearly balanced this year - the real story is that we have a funding shortfall of £115m next year. |
| "That's not sustainable, it's not fiscally responsible and I believe it's not what the public voted for." | "That's not sustainable, it's not fiscally responsible and I believe it's not what the public voted for." |
| Follow BBC Guernsey on X and Facebook and Instagram. Send your story ideas to channel.islands@bbc.co.uk. | Follow BBC Guernsey on X and Facebook and Instagram. Send your story ideas to channel.islands@bbc.co.uk. |