Tax havens ‘cannot rely on UK bail-out’

October 29th, 2009

The future of Britain’s tax havens is in question after a Government report raised doubts over Britain’s willingness to act as a lender of last resort in future unless they raise taxes and impose new regulations on their businesses.

The Daily Telegraph

A Treasury-commissioned review by Michael Foot, the former Bank of England director, concluded that unless a number of havens increase taxes, they will be vulnerable to future budget crises and may not be able to rely on full support from the UK.

The UK has never had to bail out one of its offshore territories (save for Montserrat following its 1995 volcano disaster), but, according to the Foot Review, many of them assume that the Crown would act as a lender of last resort in dire circumstances.

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