Defeat for islands in LVCR appeal

GUERNSEY'S economy suffered a devastating blow yesterday after the Channel Islands lost a legal bid aimed at saving the fulfilment industry.

Some 600 people are employed locally in the sector, and the export trade could shrink from £265m. a year to just £30m. as a result.

In Jersey, 1,500 workers are employed either directly or indirectly in the industry.

A ruling yesterday on a judicial review brought by the islands in London's High Court found that the UK could legally exclude the Channel Islands from the relief, which will still be available to other non-EU countries.

Chancellor George Osborne's Budget next week will include the measure, to take effect from 1 April.

Guernsey and Jersey will have to pick up a large portion of the UK Government's costs in the case, but the opportunity to appeal has been left open.