PUBLIC spending for the next five years has been agreed as part of the States Business Plan.

Yesterday, the States agreed to adopt the ambitious plan, which it is hoped will help balance the books as early as next year.

It limits spending growth to 2.5 per cent a year, while still putting pressure on committees to cut spending and become more efficient.

It also takes the House a step closer to ministerial government.

The scheme will prepare the way for, and see in the introduction of the Island’s first goods and services tax as well as the zero-ten corporate tax system.

It sets out how much the States will be able to spend each year and then leaves it up to the Budget debate at the end of the year for the details to be ironed out.

In his role as vice-president of Policy and Resources, Senator Terry Le Sueur explained that it was a significant milestone in the transition to the new system of government.