Guernsey taxes may rise 'to support society'

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Guernsey's social security minister has said taxes could have to rise to meet increasing demands on his department.

Deputy Alistair Langlois said the economic downturn and a rise in unemployment had increased claims for support.

He said that, coupled with an ageing population, meant there would not be any let-up in the near future.

The forecast is that social security will exceed its budget in 2012 by about £2m.

Deputy Langlois said he welcomed a review of contributions which is taking place but said raising taxes was better than cutting benefits.

He said there needed to be a major strategic review of how the States generated income.

The minister said it was important his department worked closely with the Treasury and Resources department to prepare for the challenges ahead.

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