Michael Foot is leading a UK government inquiry into the relationship beween the UK & its Crown dependencies. Shortly he will be setting out a number of options to government ministers in the report in the face of increasing concern in Whitehall over exactly what is going on with respect to Britain's Crown dependencies.
A number of British overseas territories are facing serious problems which could get worse. In the event of further economic deterioration, they could become failed states. Leaked information indicates that the government may need to make provision for the financial failure of British tax havens. The failure of a major tax haven could cost UK taxpayers billions of pounds.
The Isle of Man, Jersey, Guernsey are the UK's closest Crown dependencies. The 14 overseas jurisdictions that come under the Crown include Bermuda, the Cayman Islands, Gibraltar and the British Virgin Islands. Collectively these tax havens tie up trillions of dollars & Sterling, which constitute a strangle hold on the world's economy.
Together they drain the UK economy of an estimated £25bn annually through their role in aggressive tax avoidance and evasion involving a whole plethora of financial jiggerypokery to make millions of already ultra-wealthy people stinking rich whilst billions around the world starve.
The IoM government relies heavily on this financial 'trade' to maintain its budget in a state of surplus. It admits that the thousands of ordinary expats who deposit their life savings on the IoM are not tax dodgers and that their contribution to the economy is relatively insignificant. So the government puts out propaganda that it isn't concerned about the campaign of the dispossessed Kaupthing depositors: 'DON'T BANK ON THE ISLE OF MAN'. The banks themselves might have a very different view. So might the credit rating agencies, despite the fact that they are very much in the pocket of the IoM government.
So Foot may well be putting in a heavy boot when he reports on his findings in relation to the three-legged Isle of Man.
Here's a short video from the depositors' campaign on Youtube.com:- 'Dallas comes to Douglas'