A higher rate of income tax for earnings over £100,000, a GST rate of 5%, raising the social security ceiling and tripling rates contributions to the States are all options considered by the Fiscal Strategy Review, a consultation green paper published this morning.
With the dust still settling after plans for cuts were unveiled a fortnight ago, the Council of Ministers have followed up with a new consultation on tax, although they say that the final tax increase may be less than the full £50 million.
The money is needed because ministers want to attack the impending structural deficit from both ends – through the £50 million comprehensive spending review that will cut ten per cent off States budgets over three years, and through increasing income through new taxes.
Study the full report: Fiscal Strategy Review
