Vape tax plan confirmed in budget

Further tax breaks for landlords, new taxes on vaping and higher personal income tax allowances could all be agreed next month as part of Policy and Resources' (P&R) budget for 2026.

In setting out the budget, P&R stated the States faced a deficit of £48m and that "long-term structural balance must remain the primary focus of this assembly".

Despite this, only £1.2m in revenue-raising measures have been proposed, including above-inflation increases to taxes on cigarettes, petrol, and property.

P&R President Lindsay de Sausmarez described the 2025 budget as "not exciting".

A decision on broader tax reform - including whether GST [goods and sales tax] should apply to food, and whether companies should pay more tax on their income - is expected before June next year.

P&R has recommended increases for committees of £12m above the initial cash limits.

The States' chief executive has been tasked with finding £4m of savings next year.

If the budget is approved at the States meeting starting on 4 November, the increased rate of document duty for property transactions that are not people's principal residence will be removed.

The move is to try and stimulate the island's rental sector where, according to De Sausmarez, a lack of rental stock had been causing rents to rocket.

Recent figures showed the average local market rent was £2,068 a month in the first quarter of 2025 - 1.5% higher than the previous quarter, 8.2% higher than the first quarter of 2024 and 51.7% higher than five years ago.

As part of the 2026 budget, in an effort to improve the quality of rental properties, the tax relief which can be claimed for property maintenance by landlords could also increase.

The big levers of taxation are not being touched in this budget, as a review of the island's corporate tax system and the planned introduction of a GST are currently under way.

Decisions on major infrastructure projects including whether the States will build a new dairy will be made next year.

One project which has secured funding in the budget is the island's only sexual assault referral centre, which had originally been funded until the end of 2025.