The chief minister of Guernsey, Deputy Lyndon Trott, said the change would have a "significant impact" on the islands.

BBC: Treasury to close loophole that allows VAT-free DVDs

The report also said Mr Morgan was a poor leader and Treasury Minister Lyndon Trott had made inaccurate and inconsistent statements.

BBC: NEWS | Europe | Guernsey | Ministers quit in hospital furore

Chief Minister Lyndon Trott announced the States would challenge the UK Treasury's decision to end Low Value Consignment Relief to the Channel Islands, claiming it is discriminatory.

BBC: Deputy Barry Brehaut