A political standoff in St Helena is ongoing as the first proposed change to the personal tax-free allowance in fourteen years has caused disagreement between the Ministerial team against the island’s district elected representatives.
At the heart of the debate is a modest £150 increase that has sparked an island-wide conversation regarding the escalating cost of living, the transparency of executive government, and the long-term stability of St Helena’s public finances.
In a comprehensive press release issued today, the Government mounted a robust defence of its decision to raise the tax-free threshold from £7,000 to £7,150. Ministers emphasised that the allowance has remained entirely stagnant since its introduction in 2012. The proposed 2.1 percent uplift is specifically designed to track the 2.2 percent inflation rate recorded in the final quarter of 2025. By doing so, the Government explains it is protecting “Saints” from the silent erosion of their spending power, ensuring the real value of the tax allowance is maintained rather than handing out an unsustainable, short-term perk.
The Government was remarkably open regarding the financial constraints dictating this decision, revealing that over twenty different economic models were explored. The figures present a reality: implementing the £7,150 increase will cost the government £90,000 in the 2026/27 financial year. Conversely, the councillors’ preferred threshold of £7,500 which would demand £290,000, whilst a leap to £10,000 would cost a staggering £1.53 million.
Ministers warned that opting for these higher figures immediately would force painful choices, such as slashing funding for the like of public transport or abandoning the highly anticipated new Child Benefit Scheme.
Instead, it was explained the £7,150 figure as the only responsible choice that protects households without threatening frontline services like health and education. Furthermore, Ministers promised this tax adjustment is merely one component of a broader cost-of-living package. This includes a proposed 35p per hour increase to the minimum wage, bringing it to £4.85. This wage adjustment alone would provide a full-time adult worker with an additional £577.72 annually, a move the Government insists will meaningfully improve disposable income for the lowest-paid members of society.
The Island’s district representatives, however, view the executive’s approach with deep scepticism. Speaking on Saint FM Community Radio on Tuesday morning, Councillors Dr Corinda Essex, Ronald Coleman, and Rob Midwinter expressed profound disappointment, describing the published bill as a “fait accompli” that they only laid eyes upon when it was released to the general public last Thursday.
The backbenchers revealed that during internal consultation meetings held in January and February, they had reached a near-unanimous consensus that the threshold should be raised to a minimum of £7,500 to provide genuine, noticeable relief to struggling families. They argued that the Ministerial decision to settle on £7,150 was made entirely behind closed doors by the Executive Council on 24 February, wholly ignoring the majority view of the elected representatives.
Councillor Essex raised grave concerns over the Government’s new methodology, arguing that legally tying tax thresholds to unpredictable inflation rates is a dangerous precedent that could force the treasury into unaffordable obligations or embarrassing policy reversals in the future. Meanwhile, Councillor Midwinter criticised the blanket nature of the increase, noting that a flat threshold rise benefits higher earners just as much as those on lower wages. The councillors firmly believe that if the Government can find capital for other new initiatives, it should prioritise lifting the financial burden on the island’s most vulnerable earners.
A unique constitutional challenge complicates this saga. Under current parliamentary rules, non-ministers are strictly prohibited from proposing an increase to any financial amount stated within a Bill. As Dr Essex explained to radio listeners, the backbenchers’ hands are tied. Unless a Minister can be persuaded to formally move an amendment during the Legislative Council sitting on Thursday, 19 March, the representatives’ only genuine power is to vote the bill down entirely a drastic move that would leave the allowance frozen at £7,000.
With the formal vote looming, the district representatives are urgently taking the debate directly to the electorate to secure a mandate.
Two public meetings have been scheduled for tonight, Thursday 12 March, commencing at 7:30 PM. The gatherings will be held simultaneously at the Harford Community Centre and the Half Tree Hollow Community Centre. Three councillors will be present at each venue to listen to community views, answer questions, and determine whether the public wishes them to support the Government’s modest step or reject the Bill entirely.
For residents unable to attend tonight’s meetings, there remains a strong plea to engage before the 19th March session. Islanders are actively encouraged to submit their comments in writing to the Clerk of Council, Anita Legg, via email at anita.legg@sainthelena.gov.sh. Alternatively, constituents can reach out to their representatives directly. The Councillor’s Office can be contacted on 22590. Individual members are also taking calls, with Dr Corinda Essex available on 22038, Ronald Coleman on 24250, and Rob Midwinter on 51500. All councillors can also be reached via email using the standard format of firstname.lastname@parliament.sh.