Row over islands’ business secrets

MINISTERS faced a furious backlash from MPs last night after blocking attempts to impose financial transparency rules on Jersey, Guernsey and the Isle of Man.

A cross-party group of MPs was threatening to force the Crown Dependencies to abandon the secret ownership of companies registered with them.

Led by former Tory Cabinet minister Andrew Mitchell and Labour’s Dame Margaret Hodge, the rebellion had enough votes to overturn Theresa May’s narrow majority in the Commons. It would have forced anyone to declare publicly if they owned 25 per cent of any company based on one of the islands.

But ministers pulled the Financial Services Bill at the last minute to avoid defeat. Mr Mitchell said the amendment would have tackled money laundering and tax evasion. Downing Street indicated ministers needed to study the bill’s constitutional implications for the dependencies, which set their own fiscal rules.