FULFILMENT operator The Hut Group, which employs 50 people in the Channel Islands, is expected to remain in Guernsey.

There are serious fears for more than 600 jobs in the sector after HM Treasury announced last week that it was abolishing tax-relief for Channel Islands-based operators which meant they could export goods under £15 into the UK VAT-free. Social Security is preparing to act should the levels of unemployment be realised.

Altium Securities head of consumer and e-commerce research Greg Feehely said that it was well known that the UK would take steps and so it had been factored into investors’ targets. ‘From a Hut perspective, it would not expect to downsize its Guernsey operations as a result of these changes,’ he said.

He said it could now focus on supplying the European market.