Inflation threat is another cause for worry

NOT only are islanders faced with having to pay more tax fairly soon, now, if they fancy treating themselves to a meal out, they will probably need to dig deeper into their pockets to pay for it.

The perfect storm of Brexit and Covid-19 has, among other disruption across the UK, made it much more difficult to find and employ foreign nationals in the island – bad news for the industry which tends to use that labour most, which, in our case, is hospitality.

With a number of venues now restricting opening hours because of staff shortages, things don’t seem to be getting any better locally.

And if you can find a table, investment expert Kevin Boscher says in today's business page that you’ll probably need to pay more for it.

Guernsey authorities have moved to assist the local industry, with more help promised next year, when a ‘Work in Guernsey’ campaign will be launched with the hospitality industry.

The States has done what it can within the constraints of, or arguably the opportunities created by, the island’s population management regime.

Whether that help extends far enough has not been clarified by the local hospitality sector, but as venues continue to cut back, we can guess not.

However the States continues to progress opportunities, now liaising with Jersey over the potential to work together, while having to work with the UK to overcome Brexit constraints.

Mr Boscher also warns that disruption to supply chains, restricting local economic sectors at various times and often leaving supermarket shelves sadly empty, can be expected to continue for some time.

‘Yes, it’s having an impact on the prices we have to pay. Inflation is going up,’ he said.

The spectre of inflation, after so many years of being low to negligible, will be bad news for Guernsey.

With the job market tight and overheated, alongside high demand in the construction sector, there are enough challenges already facing islanders without cause for a further drain on strained and soon-to-be-heavily-taxed wage packets.

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