Financial Transparency: Overseas Territories

Richard Foord Excerpts

Wednesday 5th November 2025 Westminster Hall

[Steff Aquarone (North Norfolk) (LD)]

I congratulate the hon. Member for Bolton West (Phil Brickell) on the way he has framed this discussion, because we are debating the impact of these tax arrangements in the overseas territories on UK communities. Every penny being shielded from paying the fair share in these places is a penny that is not getting into our NHS and is not going to support local schools or improve public transport.

Hard-working people in North Norfolk pay their taxes fairly, but thanks to the shady systems of places like the BVI or the Cayman Islands, the multimillionaires and multibillionaires can squirrel their money away and pay very little tax at all. With their shell corporations and subsidiaries, trusts and transfer pricing, the fat cats can get away without paying their fair share. It is a tax system that is “pay to play”, and the billionaires are playing all of us.

The BVI, the Cayman Islands and Bermuda all have something in common: up there, in the top left-hand corner of their flags, is the Union Jack. Many look at this as a legacy of centuries past, but it must actually represent the existing British responsibility for—dare I say, complicity in—tens of billions of pounds of corporate tax avoidance and abuse. We still hold power over many of these places, and we can take steps to force their hand if necessary. Orders in Council have been drafted previously, which can require our overseas territories to take this action. Governments have been understandably reluctant to take this step, not wanting to appear as the colonial hand reaching across the ocean to meddle in the affairs of its territories. But if we are to provide defence and security for them, stand up for their interests internationally and support them in their hours of need, it is not too much to ask that the Governments of those territories play fair.

[Richard Foord (Honiton and Sidmouth) (LD)]

The Panama papers, released in 2016, were so-called because the company whose papers were exposed, Mossack Fonseca, was headquartered in Panama. Is my hon. Friend aware that one out of every two companies listed in the Panama papers was incorporated in the British Virgin Islands?

[Steff Aquarone]

Yes, I am frighteningly aware, because I have tried to access these registers myself, and I have relied upon reports by other organisations to tell me what is really going on. When a country’s wealth in savings is a multi-hundred-times multiple of its GDP, that brings all this into sharp focus.

But to get back to my focus, when people in North Norfolk see their health services closing down, their children’s schools unable to buy glue sticks and the cuts to public services, and then they look at the billionaires and their yachts, mansions, football clubs and private jets, they smell a rat—they know something is not working here. Something has to change. That change is real, and it is possible, if the Government have the will and the guts to stand up for it. I hope the Minister and his Government can finally be the ones to end this scandal, secure money for our public services and stop these tax havens once and for all.