Press Release
2008/09 Operating Budget Highlights
6 June 2008
Main Revenue Measures
No changes to:
Income tax or Corporation Tax rates or thresholds (subject to future taxation review)
Embarkation Fee
Passenger levy (but advance notice given of an increase of 9.4% from 1 July 2009)
Work permits, residence permits, PRP & status applications, visas and customs permits
Funeral charges and cemetery plot reservation charges
Increases in:
Electricity from 17p to 19p per unit
Customs import duties of 17% on cigarettes, 8% on tobacco and cigars and 3% on alcohol (additional revenue above inflation to be used to finance smoking cessation measures)
Accommodation charges and tuition fees for boarders at Stanley House by 3%
Rents for FIG accommodation of 4%
Communal heating scheme charge for Government flats of 12.5%
Service charges for domestic properties of 16% to £348
Waste collection from non-domestic properties of 20% to £112 for a wheelie bin and £336 for a large bin
Metered water charges for commercial users of 12.5%
Septic tank cleaning charge of 10% to £110
Customs services & clearance fees and Harbour Dues of 3%
Car licence fees of £5 to £104 (+ other licence fees commensurately)
Charges for quarry aggregate sales to the private sector of 20%
Vehicles, firearms & drivers licence fees (various; increases between £2 and £5)
Increase in postal charges & agriculture services inline with respective Exco papers
Other:
Employment Tax from 1 January 2009 - 2% employee and 2% employer contribution rate (self-employed contribution rate of 2%)
Main Spending Measures
No changes to:
Child allowance
Christmas bonus for pensioners
Increases in:
Staff salaries & wages of 3% on average (subject to determination of distribution method)
Allowances for the rent rebate scheme of 4% (savings threshold up by 3%)
Allowances and thresholds for the service charge rebate scheme of 3%
Winter fuel allowance of 15% (and increase income thresholds of 3%)
Retirement Pension Contributions (RPCs) of 4.5% from 1 January 09
Old Scheme public service & FLH pensions of 3%
Standard retirement pensions and ex-gratia pensions of 3.8% from 1 January 2009
Means tested welfare allowances (and savings threshold) of 3%
Non-means tested attendance and fostering allowance of 3%
Other:
Holiday Credit Scheme suspended from 1 July 2009. All accumulated credits to be utilised by 30 June 2012 or forfeit. Alternatively, a 50% cash withdrawal option immediately available.
