The 2023 Budget has been published and will be debated by the States of Deliberation on 1st November.
On this page you can find a summary of the 2023 Budget proposals. You can download a copy of the full 2023 Budget from the downloads section.
Links are also provided to previous years' Budgets.
Budget 2023 Summary
- The Committee is proposing
- Support with rising costs:
- A 7% increase in Personal Income Tax Allowances, increasing an individual's allowance by £850 to £13,025
- A one year pause in the planned phased withdrawal of mortgage interest relief which would benefit a couple by up to £600
- Freezing domestic TRP tariffs for properties with a TRP rating under 200
- These measures will be paid for through:
- Lowering the threshold for withdrawal of personal allowances by £10,000 to £90,000.
- An increase in domestic TRP tariffs for property above 200 units
- Real-terms increases in alcohol duty
- A doubling of the income from first registration duty
- Commercial TRP:
- An increase of 7.5% in commercial TRP tariffs (raising £300,000 in real-terms).
- Continuation of gradually increasing the commercial TRP tariffs for the general Office and Ancillary Accommodation category to the same tariff as the other Office and Ancillary Accommodation categories, resulting in an increase of a further 19% - £6.75 per unit.
- Fuel, tobacco and alcohol duty:
- An increase of 4.6p per litre to 80.9p (6%) in the excise duty on Motor Fuel, in order to maintain its value in real-terms (70.9p per litre for biodiesel).
- An increase of 11% in the excise duty on Tobacco products, increasing the duty on an average packet of twenty cigarettes by 69p to £6.95.
- An increase of 7.5% in the excise duty on Alcohol, increasing the duty on a pint of standard-strength beer by 3.9p to 56.2p (28.1p if produced by a small independent brewery) (raising £250,000 in real-terms).
- Housing and Property measures:
- Phasing out of interest relief on Domestic Let properties in order to level the playing field and raise revenue from landlords purchasing property as additional sources of income, rather than a primary residence.
- Introduction of a time-limited scheme of a reduction in document duty to encourage down-sizing from properties that are underused.
- Introduction of enhanced rates of document duty (supplement of 2%) on all residential property purchases which are not an individual's Principal Private Residence.
- Plans for new penal rates, through the TRP system, to encourage development and the use of empty properties.
The Structural Deficit
- The 2023 Budget projects a revenue surplus of £33m. However, the surplus only takes into account revenue expenditure (ie what needs to be spent each year to cover the costs of services). It is an unavoidable fact that we must spend funds on capital (ie the cost of new buildings, vehicles, investing in infrastructure or replacing medical equipment). Although the level of this kind of expenditure will fluctuate from year to year, if we assume that it averages £76m (in line with the States' target which is 2% of GDP), this surplus of £33m would become a deficit of £43m. This is our structural deficit which is real and present today.
- The only way we are able to fund our agreed capital expenditure programme during this term - which the States have agreed and which totals £528m - is by using reserves accumulated in prior years. When these are exhausted, there is no way of replenishing them or of funding our capital expenditure other than by borrowing which would need to be repaid through raising additional income.
- On top of this the costs faced by Committees to continue delivering their services and fulfilling the priorities agreed by the States in the Government Work Plan is increasing at a faster rate. For example, Health & Social Care alone requires an increase of £24m (12.7%) taking its recommended cash limit for 2023 to £212m.
- In January the States will be asked to debate the Tax Review to agree measures for raising additional revenue to continue to fund public services. If additional revenue cannot be raised it is likely the 2024 Budget will need to include major cuts in expenditure (possibly up to 10%) resulting in significant cuts to existing services.
Previous Budget Reports
- Budget Report 2022 - https://gov.gg/article/183936/States-Meeting-on-2-November-2021-Billet-dtat-XXI
- Budget Report 2021 - https://gov.gg/article/177391/States-Meeting-on-15-December-2020-Annual-Budget-for-2021-and-Non-contributory-benefit-rates-for-2021
- Budget Report 2020 - https://gov.gg/article/169724/States-Meeting-on-5-November-2019-Budget-and-Non-contributory-benefit-rates-for-2020-Billet-dtat-XXI
- Budget Report 2019 - https://gov.gg/article/165818/States-Meeting-on-6-November-2018-Billets-dtat-XXIV--XXVI-Budget
- Budget Report 2018 - https://gov.gg/article/161783/States-Meeting-on-7-November-2017-Billet-XX
- Budget Report 2017 - https://gov.gg/article/156292/States-Meeting-on-1st-November-XXVI
- Budget Report 2016 - https://gov.gg/article/150854/States-Meeting-starting-on-October-28th-2015-Billets-XIX-Budget-and-XVIII
- Budget Report 2015 - https://gov.gg/article/150448/States-Meeting-on-29th-October-2014-Billets-XXI-XXII-Budget-XXIII-XXV
- Budget Report 2014 - https://gov.gg/article/150424/States-Meeting-on-29th-October-and-30th-October-2013-Bilets-XX-XXI-Budget-XXIII
- Budget Report 2013 - https://gov.gg/article/150450/States-Meeting-on-12th-December-2012-Billets-XXV-XXVI-Budget-XXVIII
- Budget Report 2012 - https://gov.gg/article/150475/States-Meeting-on-14th-December-2011-Billets-XXI-XXII-Budget
- Budget Report 2011 - https://gov.gg/article/150486/States-Meeting-on-8th-December-2010-Billets-XXIV-XXV-Budget
- Budget Report 2010 - https://gov.gg/article/150500/States-Meeting-on-9th-December-2009-Billets-XXXII-Budget-XXXIII
- Budget Report 2009 - https://gov.gg/article/150512/States-Meeting-26th-November-2008-Billets-XIV-Budget-XV-XIX
- Budget Report 2008 - https://gov.gg/article/150526/States-Meeting-on-28th-November-2007-Billets-XXIII-Budget-XXIV
- Budget Report 2007 - https://gov.gg/article/150538/States-Meeting-on-13th-December-2006-Billets-XIX-XX-Budget-XXI
