ANOTHER small business is closing due to spiralling costs. Lighting Solutions has been trading for five years from the former coal sheds at South Side.

Its lease expires this month and as it anticipates facing an increase, it has decided not to renew it and will close on Friday.

It is also proving too difficult to find new premises.

‘It will not be long before Guernsey has no more small businesses operating,’ said owner Michael Watson.

‘The rising costs of rental premises along with the increasing freight and service costs are rendering it almost impossible to continue a small business, let alone start a new one.’

According to shop manager Hazel Mahy, it would cost between £20,000 and £30,000 to relocate.

‘It’s really squeezed us out of the market finding affordable premises in a decent area,’ she said.

‘I’ve looked around and there are no premises that we could afford.’

Ms Mahy said she would have liked to have moved into Town but the rental costs would have made it nearly impossible for the shop to survive. She said that most of those opening there were UK chain outlets.

‘Half of Town is empty because people can’t afford the leases,’ she said.

‘Mansell Street and Mill Street used to be vibrant. It’s starting to grow again but I know three people who own shops there and they are struggling. I think that’s happening a lot.’

Another factor is trying to compete with the salaries offered by the finance industry.

‘Then on top of everything you’re trying to find staff and trying to pay them a decent wage,’ said Ms Mahy.

‘You can’t employ too many staff because of the overheads.’

As a result of the costs, Ms Mahy has noticed that there are fewer businesses being set up in Guernsey.

She sees young people leaving the island and looking to start a life elsewhere.

She also feels that zero-10 is scaring away potential shop owners.

‘It’s very difficult to start up a business anyway,’ she said.

‘In truth I’ve tried to find a buyer for this, but no one is interested in starting new ventures at the moment. I’m just worried that people are getting more nervous because of zero-10.

‘No one really knows what effect it will have. People are asking if it is the right time to start up a business.’