VAT changes risk hundreds of Jersey jobs, says minister

Low Value Consignment Relief allows Channel Island companies to sell goods to the UK without VAT

The closure of a VAT loophole could put hundreds of jobs at risk, Jersey's economic development minister fears.

Removal of Low Value Consignment Relief (LVCR), from 1 April, will increase prices of goods sent from Jersey to the UK.

Senator Alan Maclean said they were working with other sectors to find ways to create and preserve jobs.

He said about 700 people, 1.3% of the total workforce, would be affected by the change.

The minister said the government would expand employment schemes like Advance to Work and Advance Plus.

'Training needs'

"Online sales are an important part of Jersey's e-commerce sector," said Senator Maclean.

"Its companies employ more than 700 people, the majority of whom are locally qualified.

"This business also produces significant revenue for Jersey Post and other postal operators."

Social Security Minister, Deputy Ian Gorst, said they would work with major employers in hospitality, retail, agriculture and construction sectors to tackle the issues.

"The Skills Executive has commissioned the Skills Board to work with the Education Department to examine the training needs of those who may lose their jobs and to recommend what additional capacity is needed at Highlands College and elsewhere," he said.

"As the department is notified of job vacancies, a team will be contacting employers with lists of suitable candidates who are registered as unemployed with five or more years of residency, in order to enhance the prospect of locals securing jobs."

The change to LVCR means that all goods sold from Jersey to the UK, regardless of value, will be subject to UK VAT.