Overseas Territories: Tax Haven Status

Baroness Chakrabarti Excerpts

Monday 26th February 2024 Lords Chamber

Asked by

[Baroness Chakrabarti]

To ask His Majesty’s Government what assessment they have made of the economic benefits for the United Kingdom of the tax haven status of the Overseas Territories.

[Baroness Chakrabarti (Lab)]

My Lords, in polarised times, I look across and see the significant space where the temperate voice of our friend Lord Cormack ought to be. We will all miss him. I beg leave to ask the Question standing in my name on the Order Paper.

[The Parliamentary Secretary, HM Treasury (Baroness Vere of Norbiton) (Con)]

My Lords, the UK has not made any recent quantitative assessment of the economic benefits of the overseas territories to the UK, but we continue to support the territories to build vibrant and sustainable economies, including through encouraging greater links to the UK economy. The overseas territories are an integral part of the British family. The elected Governments of inhabited overseas territories are responsible for fiscal matters, including tax, and are committed to upholding international tax standards.

[Baroness Chakrabarti (Lab)]

I am grateful to the Minister, if not exactly any the wiser. Last November, the UN General Assembly voted overwhelmingly in favour of a new framework convention on tax justice. His Majesty’s Government were among a small club of rich countries that voted against. Now that that Motion has been so overwhelmingly carried, and there will be negotiations for a treaty to deal with tax avoidance and evasion in the world, will His Majesty’s Government engage?

[Baroness Vere of Norbiton (Con)]

As the noble Baroness will know, there is an enormous amount of work going on at the moment around international tax. That has been led by the OECD and the inclusive framework, involving 130 countries and jurisdictions from around the world working on two pillars: one for the greater share of group profits to be taxed in market countries, and the second a global minimum tax, where all profits will be subject to a 15% minimum effective tax.