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Wednesday, 30 November 2011

"So Where Is The Fight Pip-Squeak Ozouf Promised?"

UK decision on fulfilment ‘will net UK half a billion pounds’

UK Chancellor George Osborne making his speech yesterday
UK Chancellor George Osborne making his speech yesterday

THE UK government is predicting that it will rake in almost half a billion pounds over the next five years following the closure of the Channel Islands’ fulfilment industry.

In a politically charged speech to Parliament yesterday, UK Chancellor George Osborne reconfirmed plans to shut down the industry that currently employs around 1,000 people in Jersey alone.

He accused it of undercutting the struggling British high street and in a document accompanying the statement estimated that its closure would bring in for the UK a total of £490 million in extra tax receipts by 2017.

Yesterday the JEP reported how that money – £90 million in the first year rising to £110 million a year by 2017 – had already been earmarked to fund a new infrastructure project aimed at boosting the UK economy and creating jobs there.

1 comment:

  1. Absolutely cracks me up how the UK say Jersey is indermining the UK high street shops. Its got nothing to do with people using their high street shops it is down to laziness/convenience. A high street shop is not going to prosper in this day and age especially so for dvds and cds etc when you have the convenience of ordering online and having the item delivered.

    Yes, Jersey may have undercut UK sales, but only online nothing to do with high street shopping. When it is more convenient to actually go to the high street and buy something rather than having it delivered then maybe they will have a decent point, but unless they cancel the internet in the uk then that wont happen.

    The worst case scenario is that uk is able to undercut Jersey online prices. Probably ot difficult when going against say whose prices were always above the rest of the online retailers, no wonder their owners sold out. But any company operating from Jersey only has to compete better for prices and the low value tax thing ruining the high street shopping is blown out the window.

    Its probably quite clear that I am pessimistic that this decission will make things any better for the UK high street retailers! Its just a matter of looking to be doing the right thing now and sod the fact it wont really make a difference, despite what the government says.