Removal of GST could see the prices rise in foods

The head of the Channel Islands' biggest retailer are warning that removing GST from food could lead to price rises elsewhere.

It comes after retailer Alliance promised to bring the prices of many of its items down to match the UK.

Andrew Bagot, Managing Director of Alliance, said he hoped the move would prompt a debate on pricing and whether GST should be applied to food.

Tony O'Neill from Sandpiper CI, which has franchise partnerships with multiple UK retail chains, says his company continues to oppose the tax being added to food.

However, he said if food was exempt from GST this would leave “a rather large hole to fill" in revenue.