THE increase in postal charges could offset any advantage in the rise in UK VAT for Guernsey business according to an industry spokesman.

Guernsey Bulk Mailers’ Association chairman Rodney Brouard doubted that the rise in VAT from 17.5% to 20% from the start of next year – announced in UK Chancellor George Osborne’s emergency budget on Tuesday – would make much difference to the plants and postal flowers exporters in particular.

‘Postal charges have gone up enormously recently so the advantage that Guernsey businesses could have over UK ones may well be cancelled out,’ he said. The situation could be different for smaller items such as DVDs, he said, but it was too early to know yet.

Under ‘Low Value Consignment Relief’ postal items under £18 are imported into the UK VAT-free.

• Read the full story in the Guernsey Press. See below for subscription details.