Guernsey business costs 'likely to go up'

A survey of local firms has revealed the cost of doing business in Guernsey is likely to rise over the next year.

The island's Chamber of Commerce and Young Business Group questioned 106 companies and found about two thirds were predicting a rise in costs.

Meanwhile more than 50% predicted their turnover would not increase.

The results of the survey are to be discussed on Wednesday by a panel including Guernsey's chief minister and other members of the Policy Council.

The survey questioned businesses on their performance during 2011 and projections for 2012.

It found that while confidence for the 2012 financial year was low, most companies did not feel their turnover would drop.

Barry Cash, Director of the island's Chamber of Commerce, said: "It's not surprising, we've known for many years that companies are working much harder to try to keep their income up."

He added: "The year coming, we anticipate they will have to work harder, turnover will continue to increase, but they think the profits will probably be the same or just a bit less."

Richard Battersby, Chairman of the Confederation of Guernsey Industry, echoed some of the responses.

He said: "The general costs [of doing business] have risen markedly, the rate of inflation in Guernsey has been higher than the rate of inflation in the UK.

"With the effects of compound interest, do that for a few years and your edge goes."