Having earmarked hundreds of millions of pounds to assist businesses during the pandemic, the government last week announced a scheme to potentially borrow up to £500 million from five different banks.
During a Corporate Services Scrutiny Panel hearing yesterday, Treasury Minister Susie Pinel said officers were looking at different options to recover the money but that putting up income tax was not one of them.
She said: ‘We have looked at all options and we are considering them, but putting up income tax is out of the question.
‘There is the question of GST but, as you know, this is difficult, as we have seen in recent years. We are looking at all aspects of things but anything we do needs to be fair. We are looking at possibly increasing caps on social security.’
The deferral of GST payments until the end of quarter two is already taking place to ease the financial impact on businesses, and Deputy Pinel said that could be extended.
In the meeting, St Martin Constable Karen Shenton-Stone queried comments made by Assistant Minister Ian Gorst who has previously raised the potential of tax cuts and initiating large infrastructure projects to stimulate the economy.
She asked whether he should be giving his personal view at press conferences when he was representing the Treasury Department.
Senator Gorst said: ‘The Deputy Chief Minister and myself were asked a straight-forward question in media briefings regarding discussions about the economy and other health effects of lockdown.
‘I think it is important for ministers to speak in public about the direction of policy and the ideas we are asking officials to consider.
‘I did say a bold package of measures, including those elements, would be and should be appropriate and should be brought forward.
‘Again I made it very clear what my position was but that was not the position of government or the ministerial team.’
