Financial Transparency: Overseas Territories

Tom Hayes Excerpts

Wednesday 5th November 2025 Westminster Hall

[Tom Hayes (Bournemouth East) (Lab)]

I thank my hon. Friend the Member for Bolton West (Phil Brickell) for securing this debate. I recognise that there are many British overseas territories that are trying to do the right thing, but as we have heard today, some are magnets for dirty money and safe havens for the wealth of autocratic aggressors, laundering billions under the British flag. We must put a stop to that now.

Let us be clear about what the offshoring of dirty means here at home, in my constituency of Bournemouth East. It is money stolen from the public purse. Billions are being siphoned away that could go directly into our hospitals and schools, and into lower tax rates. This is about our housing crisis. When the super-rich pour their ill-gotten gains into luxury property in our towns and cities, homes sit empty while families cannot afford a roof over their heads. Young people tell me all the time that they have to move away to get on in life because they cannot afford a home in Bournemouth.

This is about our high streets, where there are trust-owned properties, hidden behind secrecy, lying empty and untouchable. Enforcement officers cannot act because they cannot trace the owners. Our high streets lie empty, robbed of vitality. Indeed, where there is activity, it is in the form of candy or vape shops that are so brightly lit they can be seen from space, themselves a front for money laundering. This is about money being stolen from workers’ wages and from the Treasuries of the world’s poorest nations. Twenty years ago we said, “Make Poverty History”; let us make dirty money history too.

Where does the trail lead? Time and again to the British Virgin Islands. After investigation, I can share that the total number of properties in Bournemouth East reported as offshore entities stands at 82. These are owned through entities based in the Crown dependencies or the overseas territories, and unsurprisingly the BVI figures prominently. Where entities are required to declare their beneficial owners, the choice of jurisdictions appears to be selected for their secrecy. Fifty-seven have not reported the price paid—just 25 have done so. Even when beneficial ownership is shared, details about the person benefiting from the property are not always available to the public.

[Lloyd Hatton]

My hon. Friend speaks very eloquently on that point. Living in communities like Bournemouth or my hometown of Weymouth, individuals and businesses seemingly do not have a choice about registering a business and being transparent about who owns a property and what tax they pay. Does he share my concern that unless we see further action here, there will be one rule for the majority of people in our constituencies, and seemingly a whole separate raft of rules for the very wealthiest?

[Tom Hayes]

I could not agree more. In Dorset, we have constituents who want to play by the rules but are routinely let down by the lack of tax transparency.

For the 25 properties that have reported the price paid, the combined total is £7.2 million. With the 57 shrouded in secrecy, the total sums involved will clearly be significant. The BVI should be supporting action to track down crime. Instead, as we have heard, it is giving criminals a head start, tipping them off when there is an investigation under way. Because half the entities exposed in the Panama papers were linked to the BVI, Parliament acted decisively. A deadline was set and the will was clear. However, here we are years later, and Parliament’s will continues to be flouted by the BVI.

My question to the Minister, who I know is an excellent tax transparency campaigner of many years, is: when the remedy exists, are the Government open to using an Order in Council if progress is not made in the next year? Without transparency, we cannot follow the money, and if we cannot follow the money, we cannot truly fund our public services. Without action to correct tax secrecy, we cannot claim to stand for integrity, and without integrity, we cannot truly say that democracy works in the interests of everyone.