The Policy & Resources Committee has set out an initial package of financial measures to help businesses and individuals deal with the financially onerous impacts of the Covid-19 public health crisis.
The headline measures are:
- Deferral of Social Insurance;
- Deferral of Commercial TRP;
- Deferral of rent payments to the States of Guernsey by business tenants;
- Suspension of mooring fees for commercial fishermen;
- Establishment of a scheme to support banks in providing liquidity to businesses;
- Establishment of a £5m ‘hardship’ fund
To fund these steps, the Policy & Resources Committee will submit an emergency policy letter for consideration by the States, recommending delegated authority be given to the Committee for use of the General Revenue Account Reserve. The Reserve is designed to be used to manage fluctuations in income and expenditure and, as per agreed policy, holds a balance of 5% of annual revenue income. In addition, the unallocated surplus from 2019 is held in this reserve. In total, some £30m would become immediately available. It is suggested that this be used at this early stage rather than any call being made on the Core Investment Reserve.
To view the proposals,
https://www.gov.gg/article/176828/Financial-measures-to-support-the-Guernsey-economy