Overseas Territories: Tax Transparency

Tom Hayes Excerpts

Wednesday 5th February 2025 Westminster Hall

[Tom Hayes (Bournemouth East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Turner. I commend my hon. Friend the Member for Kensington and Bayswater (Joe Powell) for bringing forward this excellent debate.

Extreme inequality is out of control around our world. Oxfam says that the global wealth of almost 5 billion people—the poorest 60%—has fallen; meanwhile, the world’s richest men have more than doubled their fortunes since 2022. It says that global poverty will not be eradicated for another 230 years; meanwhile, the world could have its first trillionaire within a decade. Here in our country, just like overseas, millions are suffering daily hardship. This is personal for me. I grew up in poverty, with parents who I cared for unable to get a foot in the door of public services starved of resources. That is why I stood to be a Labour MP who campaigns against tax secrecy.

A contributor to the widening inequality crisis is a rigged, secretive global tax system. Let us be clear: tax abuse and corruption go hand in hand. Leaked confidential documents dating back over a decade reveal a global spider’s web of secretive offshore tax havens. The super-rich and multinational corporations evade scrutiny and avoid paying their fair share of tax. In the words of the previous World Bank president, corporate tax dodging is

“a form of corruption that hurts the poor”.

Poor countries and poor people in our society need us to raise our voices to end the era of tax havens. This Government can do something about it. Ministers have set out our transparency expectations to the overseas territories. In his reply to the written question I tabled in October about our recent steps to ensure that OTs establish public registers, the Minister of State, Foreign, Commonwealth and Development Office, my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty), noted that he had written to OT Governments to

“set out UK transparency expectations”,

and say that

“full public accessibility remains our expectation.”

He also said:

“Access filtered to those with ‘legitimate interest’ should be delivered to a clear timetable, as an interim step”

and he outlined to the OTs

“a set of minimum requirements that UK Government would expect to see in any ‘legitimate interest’ regime.”

The Government are resetting our relationship with the overseas territories and seeking a partnership based on transparency and accountability—but, as we heard, it takes two to dance. Regrettably, OTs such as the British Virgin Islands are doing all they can to fall short and continuing to facilitate illicit finance and kleptocracy, as we heard from the right hon. Member for Sutton Coldfield (Mr Mitchell). It is a scandal. The public want solutions, and that is why we MPs are calling for action.

While the rich get richer and the rest fall back, public services collapse and public spaces rot. Populists do not create grievances, but they do not half exploit them. There are plenty of grievances to exploit in our country because of the toxic cocktail of inequality and austerity, which has been worsened by tax secrecy and tax avoidance. Our determination as a Government to be on the side of working people will require decisive action towards tax secrecy and tax avoidance. We can secure tax justice, and when we do, we will help the hungry to be fed and help families to know that politics is once again on their side.

I commend the fact that the Foreign Secretary will hold a global summit, but I would call it an anti-corruption summit, to follow the one that happened 10 years ago. I believe that is what we need.

Chagos Islands

Tom Hayes Excerpts

Wednesday 13th November 2024 Commons Chamber

[Stephen Doughty]

I thank the hon. Gentleman, who speaks for the Liberal Democrats, for his questions. I know that the future of the islands is hugely important to the Chagossian community. I have engaged with the Chagossian community over many, many years and since I have been in government. We have always been clear about the importance of respecting their interests. I have to say, though, that the negotiations were between the UK and Mauritius, as sovereign states, with our priority being to secure the full operation of the base on Diego Garcia. However, it is crucial that we recognise the importance of Chagossian interests within this process and we have done that.

I am confident that when the full deal is presented to Parliament, which it will be in due course, there will be important provisions in there that will reassure members of the Chagossian community. As I mentioned, some of them have already been made public: the ability to visit, the ability to resettle on the outer islands, the UK citizenship guarantees, the trust fund, and, of course, the UK’s own support, which is crucial and comes on the back of the support we have provided for some time.

The hon. Gentleman asked about the Sri Lankan migrants on Diego Garcia. This Government inherited a deeply troubling situation which remained unresolved under the last Administration for years after the migrants arrived on Diego Garcia, resulting in mounting legal challenges. We have been working at pace to find a solution that protects the welfare of individuals and the integrity of British territorial borders. Due to the exceptional nature of the cases, the Government have taken the decision to relocate a small number of the migrants to the UK, but that is subject to security checks. They will get a short period of permission to enter the UK, when the individuals can consider their personal circumstances and next steps.

[Tom Hayes (Bournemouth East) (Lab)]

One of the wonderful things about our Parliament and our democracy is that our citizens can see our proceedings, but so too can our foes. Those who wish us harm and have no good intentions towards us will look across at the Opposition Benches and see that there is not a credible national security team when they are asking questions of this Government.

I want to confine my question to a constituent of mine who has lived in the UK for the last 17 years after leaving the Chagos islands. He is keen to reunite with his family who are now UK citizens, but housing costs are an issue. Will the Minister get back to me with information on whether housing support could be part of the Government’s overall support for the Chagossian community?