Billions of City financing from British offshore centres targeted in continuing 'Paradise Papers' aftermath

08 November 2017

Written by Dr Andy Sloan

In his first blog for Guernsey Finance, economist Dr Andy Sloan, Acting Director of Strategy for the promotional agency, shares his thoughts on what he regards as a strategic threat to the City of London arising from the continuing aftermath of the so called ‘Paradise Papers’.  

Despite meeting every international transparency standard thrown at them, British offshore finance centres are being used as pawns in a battle by the EU27 in a fight over the future of the UK finance sector post-Brexit.

In a story published by the Financial Times earlier this week, titled ‘EU warns 53 jurisdictions of tax blacklist threat’, the EU agenda against the UK and the City of London itself was made clear.

British offshore financial centres perform a vital economic role funnelling trillions of pounds of capital into the City of London and supporting the UK financial services industry.

Whilst ensuring continued continental access to centres such as Liechtenstein, Monaco and Switzerland, the EU threat of black listing and withholding taxes on the British offshore centres is a proxy attack on the City of London designed to hamper the UK finance sector, cutting it off from its traditional hinterland at a time when numerous EU27 members states are also actively seeking to entice its business away.

UK policy makers would be failing their electorate by allowing themselves to be duped by the current propaganda and failing to support and protect the UK’s global economic interest. Going forward, the British offshore centres' role in supporting UK competitiveness and growth post 2019 must be supported, not undermined.

 

Download Find a related practitioner