RATES are set to rise across the board this year, with the Islandwide rate going up for all property owners and tenants, and individual parishes facing increasing costs.
The Islandwide domestic rate – which is collected by the parishes but passed on to the government to fund welfare – is increasing from 0.8p per quarter to 0.89p.
For businesses, the non-domestic rate is rising from 1.15p to 1.31p.
The Islandwide rate is based on the March RPI figure, which was 12.7%.
Overall, in addition to the extra revenue collected as a result of the rate rise, parishes will see their coffers swell because more properties are being built, which adds to the number of rateable quarters.
When it comes to the parish rate – which funds each parochial administration – these are currently being set at a series of assemblies being held across the 12 parishes. Four have already been held.
St Peter and St Clement got the ball rolling last week with parishioners approving rate rises of 4% and 10.89% respectively.
St Peter Constable Richard Vibert said: ‘We have raised our rate by 4%, or 0.05p per quarter this year.
‘Salaries were increased by 8% and the rest of the rise is allocated to cover maintenance costs for this year, and future years, on various properties, including £160,000 of roof repairs to the senior citizens’ home at Maison Le Marquand, £50,000 on restoration work at the parish church, and £50,000 on woodwork repairs on our sheltered homes at Clos Le Ruez.’
St Clement Constable Marcus Troy said parish staff wages and the refuse-collection contract were both linked to RPI, which had been based on the March figure. He added that money was also being set aside for new vehicles, and work on the parish hall and church.
Trinity and St Saviour both hold their finance-related assemblies this week.
Trinity Constable Philip Le Sueur said it was ‘fair to say’ that every Constable was ‘mindful that costs are going up on every front for everybody’.
He added: ‘We are living through a time of high inflation and we are always fishing in a small pond.
‘Every Constable is trying their best to keep as tight a lid on things as we can.’
Focusing on his parish, Mr Le Sueur said that Trinity would be funding redecoration and repairs for its rectory out of reserves, and money for forthcoming road upgrades – to limit traffic speed through the central hub of the parish – would be coming out of the government funds.
St Saviour Constable Kevin Lewis said he had proposed a ‘small increase’ in the parish rate.
How does it work?
At the 12 parish assemblies, the ‘principals and electors’ are asked to approve the accounts of the last financial year, which ended on 30 April, and spending for the next 12 months.
The Constables always propose an estimated budget for the year ahead, but every elector in the parish has the right to question the proposed spending and/or make their own proposals, such as cutting a particular budget, recommending an increase, or presenting a new item which they think needs funding.
Spending will typically include the maintenance of byroads and parish infrastructure, refuse collection, the wages of parish staff and grants to charities and other organisations.
Constables may also want to build-up reserves to soften the blow of future spending projects.
Once the assembly approves the estimates, the Constable, supported by their Procureurs, will propose a rate, which must, by law, cover the parish’s spending.
Each property and piece of land has a number of ‘quarters’ based of its rentable value, which is determined by volunteer rates assessors. If land or property is rented, then the rate is shared between the owner and the occupier. Usually, Constables will propose two or three different rates and typically recommend one of them.
St Brelade Constable Mike Jackson, who also chairs the Comité des Connétables, said the annual meeting was an important date in any parish calendar and a demonstration of local democracy. ‘Every elector has the right to propose an increase or reduction in the estimates on the night, and if the assembly agrees, then the proposed rate might have to change as a consequence,’ he said.
Talking about his own parish accounts, which are due to be discussed at an assembly on 25 July, Mr Jackson said he would likely propose an 8% rise in rates to cover wage increases. ‘We will also need to consider how we fund a new roof for the parish hall, which may require some form of borrowing,’ he added.
