More fulfilment firms 'will quit' as States drops LVCR appeal

MORE fulfilment companies will leave Guernsey as a result of the Policy Council's decision not to fight on over low value consignment relief, it is feared.

Bulk Mailers' Association chairman Rodney Brouard, pictured, said he was disappointed by the decision, but not surprised.

Guernsey and Jersey lost a High Court challenge last month when it was ruled the UK could target the Channel Islands alone in ending a VAT relief that was available to all countries outside the EU.

It is understood the original high court challenge is estimated to have cost Guernsey £70,000, an increase of £10,000 on the original estimate. It is not known how much the UK costs will be on top of that.

Both islands announced on Monday that they would not appeal the decision, something which will make up the minds of those companies that were still undecided about leaving, according to Mr Brouard.