Tory rebels force Government climbdown on offshore tax havens

THE GOVERNMENT was yesterday forced by Tory rebels and Labour to back down and ensure the UK’s offshore tax havens are made to be more transparent.

Foreign Office Minister Sir Alan Duncan conceded to demands of Labour’s Dame Margaret Hodge and some 20 Tory MPs to ensure British overseas territories publish details of the true owners of firms, in a bid to clampdown on money laundering, corruption and tax dodging.

Sir Alan had insisted the territories are separate jurisdictions with democratically-elected governments, responsible for their fiscal matters and unrepresented in the British Parliament, and warned that legislating without their consent “effectively disenfranchises their elected representatives”.

But with defeat looming and last-ditch Government amendments not selected by Speaker John Bercow for debate, he conceded in a move which highlighted the fragility of Theresa May’s minority administration, which relies on a confidence and supply deal with the DUP.

Dame Margaret’s amendment to the Sanctions and Anti-Money Laundering Bill will force the likes of the British Virgin Islands and the Cayman Islands to establish public registers of the beneficial ownership of firms in their jurisdictions by the end of 2020.

The former Public Accounts Committee chair said it was “a remarkable, important and really world-changing measure in relation to the fight against corruption”.

Conservative former Cabinet Minister Andrew Mitchell, who led support on the Tory benches, added: “The overseas territories share our freedom. They travel under our flag, and they should also share our values.”

But Tory backbencher Geoffrey Cox, who represents Torridge and West Devon, said Britain was breaking a promise made to the Cayman Islands in 2009 not to legislate for the territory without its consent.

He said: “We are breaking that promise to them It is beneath the dignity of this Parliament to do away with that promise and pledge of good faith.”