Guernsey's Finances 'Unsustainable'

An independent panel concludes that the island's low tax status can't continue if government finances are to recover.

The panel of three economists - including former States economist Dr Andy Sloan - were appointed in August this year to assess the States' Fiscal Policy.

Their report, published today (9 October) , concludes that 'Guernsey is no longer on a sustainable fiscal path.'

They say that the low level of public investment is the most significant factor - highlighting that it is lower in Guernsey than in any other OECD economy.

The report says that none of the three options put forward by Policy and Resources, and to be debated by the Assembly later this month, go far enough to put Guernsey's finances into a position where they're sustainable.

It shows that the more people are living longer and putting a strain on public resources.

The report says the island's dependence on the finance sector, which accounts for around 40% of local economic activity, makes it vulnerable to external economic shocks. Tourism as a money-earner ranks much lower down the list.