Guernsey's Fiscal Policy Framework - Amendment 1

To delete Proposition 1 and replace with the following:

“1.To agree that the Policy Letter entitled ‘Guernsey’s Fiscal Policy Framework’, dated 21st November 2025, be not approved, and to direct Policy & Resources Committee to return to the States with a revised Fiscal Policy Framework which addresses the matters identified by the Scrutiny Management Committee in its Letter of Comment, including—

(a)the articulation of a clear and consistently applied core fiscal principle;

(b)the inclusion of clearer and more transparent constraints governing deficits, borrowing and cash-flow management, sufficient to enable prospective assessment of compliance;

(c)a coherent and justified approach to the treatment, accessibility and replenishment of reserves; and

(d)strengthened governance and independent oversight arrangements, including clarification of the role, remit and independence of the Fiscal Policy Panel.”.

• To delete Proposition 2 and replace with the following:-

“2.To direct the Policy & Resources Committee to include within any policy letters dealing with projections of States finances, analysis of how decisions will impact compliance with any revised Fiscal Policy Framework approved by the States.”.

• In Proposition 3, delete sub-paragraphs (a) and (b) and immediately after the words “Fiscal Policy Panel to” insert the words “review the remit, commissioning arrangements and reporting lines of the Fiscal Policy Panel, and to return to the States with proposals to strengthen its independence and accountability prior to any approval of a revised Fiscal Policy Framework.”.
• In Proposition 4, after the words “to develop” insert the words “, for subsequent consideration by the States, and without presupposing the adoption of the Fiscal Policy Framework, and to ensure that no assumptions as to borrowing capacity or fiscal headroom are treated as agreed unless and until approved by the States,”.