SHOPPERS will have to take lead against retailers that charge VAT-inclusive prices. ‘The customers have a choice. They can shop in places that they consider to be good value or they can shop elsewhere,’ said Chamber of Commerce retail subcommittee chairman Tony Creasey.

‘That applies also to mail order and Internet shops.’

Mr Creasey said UK firms that charged VAT-inclusive prices would be reluctant to spend money on technology to deduct that from goods for their Channel Islands outlets. ‘The cost would far outweigh the benefits,’ he said.

‘They may decide that it is not worth it because it would be a cost that would not make the branch viable because they have high management costs.

‘There is no doubt that a lot of firms find that business in Guernsey is quite expensive and servicing retail units on the island as part of a UK group comes with significant costs.

‘Also a lot find over here that the wages are a lot more than they are paying on the mainland and rent costs are continuing to rise,’ he said.

‘The cost of employment over here is quite high and a lot of these stores have relatively big and complex point of sale systems. The cost of getting software enhancements for one or two stores in their network can be high and may not be one they wish to entertain.’

Mr Creasey is managing director of Creasey’s department store.

‘As far as possible, we try to make sure that our prices are lower than they would be in a similar business in the UK, but, of course, it is true to say that is not always the case,’ he said.