As the States of Guernsey prepares to resume the tax reform debate this week, Guernsey Chamber of Commerce is urging deputies not to lose sight of the wider financial challenge facing the Bailiwick, as public debate focusses only on GST.
Guernsey continues to face a significant structural deficit. The Chamber believes meaningful reform of the tax system is necessary, but stresses that reform of revenue alone is not enough. Government must also set out a credible plan to control and reduce expenditure.
This position is grounded in the Chamber’s own 2024 member survey, which found strong agreement across the business community on the fundamentals of the debate:
- 79% of respondents recognised the significant gap between government income and expenditure
- 73% supported the Chamber Executive’s endorsement of ‘Option 3’ — the full tax reform package — as the most viable proposal on the table at the time
- 89% agreed that government needs to set out a clear path for cost reduction
These results show that, while the members views vary on individual tax measures, there is strong consensus on the need to address Guernsey’s financial position, and that financial discipline must form part of the solution.
Ahead of the September sitting, the Chamber joined with the Guernsey International Business Association (GIBA), the Institute of Directors (IoD), the Association of Guernsey Charities (AGC) and the Guernsey Building Trade Employers Association in writing to all deputies on 27 August 2026.
The letter, sent on behalf of members across the five organisations, does not advocate for any policy option proposed. Instead, it makes a single central request: that the States reach a conclusive decision at the 30 September sitting, so that businesses and organisations can plan with confidence.
“We do not underestimate the difficulty of reaching agreement on such a consequential matter and simply ask that the process now be brought to a clear conclusion.”
Pictured: Alice Gill, Executive Director of the Guernsey Chamber of Commerce
