THE UK last week did nothing less than declare economic warfare on the Channel Islands.

NOW that the anticipated announcement has been made by the UK Treasury about ending VAT relief for local businesses exporting to the UK, it is clear to see that this is a potentially shattering blow for not just the hundreds working in the fulfilment sector but also for the two Channel Island economies.

A GROUP of Guernsey companies is mounting a legal challenge against the scrapping of a relief that allows goods under £15 to be shipped VAT-free from the Channel Islands to the UK.

THE Chancellor of the Exchequer has sent out another strong message that he intends to limit further the ability of the Channel Islands to send goods VAT-free to the UK.

THE Policy Council has poured cold water on Jersey’s claim that UK government cutbacks are slowing up laws being passed by the Privy Council.

GUERNSEY will be given more freedom on the international stage by the new coalition government.

NEWS that one of the first actions of Guernsey’s special ‘friends’ in the UK government will be to try to make life difficult here for the bulk mailers in the fulfilment sector is a reminder to the chief minister that there are no real pals in politics.

NEXT week George Osborne will deliver the emergency Budget promised by the Conservatives in the run-up to the general election. Ernst & Young partner Graham Parrot wonders if the UK’s emergency Budget will achieve the coalition government’s goal.

IN FEWER than 50 days, Britain’s new coalition government is expected to deliver an emergency budget aimed at bringing down the country’s extraordinary levels of debt.

GUERNSEY is trying to become exempt from a 90-day- stay rule that threatens to put local residents into the UK taxation net.