MAIL order giant Littlewoods yesterday agreed to stop charging VAT on local sales. And chief executive Mark Newton-Jones said that anyone who had been forced to pay the UK tax would get their money back.

The catalogue empire climbed down after the Guernsey Press highlighted the situation at the highest level.

Shortly after copies of the newspaper’s Fair Play campaign had been sent to the company’s head office, Mr Newton-Jones, who heads Littlewoods Shop Direct Group, called to say that VAT relief would be given to all Channel Island customers after all.

He blamed the decision to impose it on an oversight as Littlewoods changed systems following its merger with Shop Direct. The company, which also owns Kays, Lifestyle, Choice for You and Great Universal, said it had changed platforms and the one chosen did not have VAT relief built in.

As a result, about 3,000 Channel Island customers out of its five million total had lost this rebate.

‘We have now found a manual workaround which will give this relief,’ he said.

He emphasised the scale of the system alterations and said that many tens of thousands of man-hours had gone into making it happen.

‘Unfortunately, with the sheer level of system changes needed, this was an oversight.’

When the Guernsey Press coverage was drawn to his attention, questions were asked as to how it had happened and a solution was found ‘because our customers come first’.

David Boardman, Littlewoods’ head of communications, said: ‘These things can slip through but it’s good when it’s something we are able to rectify.’

The news will delight hundreds of catalogue shoppers, many of whom were prepared to boycott the company over its action.

The move was also welcomed by deputy Commerce and Employment minister Carla McNulty Bauer, who has supported the newspaper’s stance on the issue.

Littlewoods’ speedy change of heart will, however, put pressure on other retailers here who continue to charge VAT.