More cuts, less tax?

States Members were due to debate spending cuts for 2012 and 2013 at the end of the Business Plan last week, but Chief Minister Terry Le Sueur made the surprising decision to withdraw the proposals at the last minute.

Senator Ferguson says that ministers gave her panel – which was proposing amendments to the plan to increase cuts and reduce tax rises – a behind-the-scenes assurance that ministers would come back with plans to increase the three-year cuts target for savings from £50m to around £65m or £70m.

That would mean a corresponding drop in the tax rises necessary to fill the £100m annual deficit, down from £50m to around £35m or £30m.