Shops will close if GST is taken off food

Saturday 7th March 2009, 9:58AM GMT.

From Catherine Pitman.
AS a Jersey girl working in accountancy in Nottingham, my heart sank when I read that Deputy Carolyn Labey was trying again to take GST off food.

Who is she trying to help? She quotes Treasury figures that the cost of taking GST off food and domestic energy is £6.5m, and that the poorest in Jersey have already had £11.5m back in increased social security and allowances. So it isn’t them.

Next she says that Jersey should cut GST because Britain has just reduced VAT. And how much of the lower VAT does she think shops have passed on to customers? Apart from ‘big ticket’ items such as electrical goods and cars, nothing. Day-to-day prices have not changed. To think that people will have an extra £6.5m in their pockets is just naive.

Has she thought about the costs to businesses of the changes she wants? They will pass these costs on to customers. And she says that there is software in Britain that businesses can use. Most software suppliers don’t sell to the Channel Islands because it is too costly for them to provide post-sale support. And she assumes that all shops have computerised till and stock systems. Many local shops don’t, and can’t afford them. Some will close if this goes ahead.

Deputy Labey talks about those on fixed incomes suffering in the recession. My (widowed) mother is on a fixed income; she is not poor, but not rich either. Her local store, run by two sisters as old as she, is five minutes walk away. They will close if they have to decide which of the thousands of lines they sell have got GST on and which have not, rather than know that it is on everything. So instead of the possibility of a few pence off her local shopping bill, my mother will have to spend more than before by driving into town.

And what about shoppers? Even after several years in Britain I can’t tell you which foods have VAT on and which don’t. So will the Jersey Consumer Council (or Breckon’s bulldog, as my mother calls it) demand labelling on the shelves at shops? And who will pay for this? That’s right — the customer will.
So please, if Deputy Labey really wants to do something to help the people of Jersey, she should drop this one. Did she know that ferry fares are twice as high to travel from Jersey to Britain as from Britain to Jersey? Now there’s something she can help us with.
7 Mona Road,
West Bridgeford,
Nottingham.


  1. 1
    milo

    Spot-on!
    In the last States there were a few Members courageous enough to stand up to this UK-VAT-style nonsense, even under the threat of the “you won’t get re-elected unless you agree” brigade. I just hope that there are enough sensible, level-headed Members left to reject this again. I’ve been speaking to a greengrocer/florist about this and he is really concerned about the confusion it will bring to his own small business. I fear that could be as threatened by this proposal as the little shop Ms Pitman mentions.

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  2. 2
    DA-DO RON

    get rid of GST on food and ever thing else for that matter

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  3. 3
    JULIE

    Just one thing I would like to point out- Marks and Spencer have passed on the VAT reduction on everything- your till receipt clearly shows the reduction no matter how small the item so it is not just “big ticket” items which have been reduced.I am talking about in the UK of course-Marks in Jersey have NOT reduced their prices I am told!

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  4. 4
    Sarah

    Its easy for you to sit in the uk and say what laws should be in Jersey. Those on income support get some money back to help with GST but when we are all encouraged to eat healthily, what about taking GST off fruit and veg and healthy foods, and leave it on high fat, high sugar items to encourage people to lose weight.

    Also the uk doesnt have VAT on essential items such as childrens clothes and nappies etc and it should be the same with GST over here.

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  5. 5
    R B Bougourd

    Of course Jersey will move to UK style VAT because as far as I can see Jersey GST doesn’t offer any perks to business users – If it does the business users haven’t let on yet or the rest haven’t twigged.

    All of a sudden you will find lots of people needing to drive double cab pick up trucks. That should give you all something different to moan about instead of 4x4s on the school run.

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