A collaborative approach is essential for advancing mutual interests between the new United Kingdom (UK) Government and its Overseas Territories’ (Ots) International Finance Centres (IFCs). Panellists expressed this sentiment at the recent BVI Finance Breakfast Forum held to discuss key strategic priorities for the OT in their relationship with the UK Government under the new Labour leadership.
The Breakfast Forum, moderated by BVI Finance CEO, Elise Donovan, featured experts in public policy, regulatory frameworks, and international finance, including Mitchell Cohen, Head of Public Affairs at Lansons, with a strong background in public policy and experience with the Labour Party; Oliver Cooper, Policy Lead at Speechlys LLP and Counsel at the IFC Forum, specializing in international tax, trade, and financial services regulation; and Benito Wheatley, Special Envoy to the Government of the Virgin Islands, with extensive experience in UK-BVI relations and as a policy fellow at the University of Cambridge.
The panel examined several critical areas, including the implications of the new Labour Government elected on July 4; Potential changes in policies affecting international finance centres like the British Virgin Islands; and an analysis of regulatory frameworks, economic stability, and financial transparency under the new government.
Impact of UK Elections
Key factors leading to the Labour Party's victory were examined, including the public's desire for change after a prolonged Conservative rule and Labour's effective positioning as a credible alternative. The panel also highlighted Labour’s immediate actions and anticipated policy changes, which are likely to affect IFCs.
The discussion emphasized Labour’s collaborative approach to engaging with Overseas Territories and its commitment to radical changes in housing, planning, and financial regulation. Labour’s focus on addressing climate change and promoting sustainable development was also noted. The panel underscored Labour’s preference for Civil Service advice and constructive engagement with Overseas Territories to ensure mutual prosperity and economic resilience.
Positive Contributions and Collaboration: Benito highlighted, "The Overseas Territories are aligned with the UK in combating illicit finance and supporting UK geopolitical interests, such as sanctions against Russia. We have established an effective Sanctions Unit and continue to contribute positively to shared objectives."
Labour Party Ideology and Challenges: Mitchell discussed Labour's stance, saying, "While Labour has distanced itself from past narratives labelling some territories as problematic, there remains a need for substantial educational efforts. We must inform new MPs about the significant and positive contributions of the Overseas Territories."
Role of Key Figures: Mitchell noted, "Figures like Foreign Secretary David Lammy and Minister of State with responsibility for OTs Stephen Doughty play pivotal roles in supporting the Overseas Territories within the UK Government. Their collaborative approach is essential for advancing our mutual interests."
Civil Servant Support: Oliver highlighted that “Civil Servants in the UK Government have been very supportive of an approach that's collaborative and that tries to encourage rather than forcing the Overseas Territories to move towards the UK Government standard.”
Strategic Messaging and Education: "We emphasize the importance of strategic messaging," Mitchell stressed. "It is crucial to educate stakeholders, including Parliamentarians, on how the Overseas Territories contribute to economic growth and sustainability within the British family."
Empowerment of OT Minister: Mitchell and Benito emphasized the need to empower Stephen Doughty, the OT Minister. "Stephen plays a critical role in advocating for the Overseas Territories within the Financial, Commonwealth and Development Office (FCDO) and across government departments," noted Mitchell, highlighting the importance of effective representation.
Financial Services and Economic Resilience: Benito underscored, "The financial services sector in the overseas territories is vital for economic resilience, especially during crises like hurricanes. Sustaining this sector is crucial for maintaining stable public finances."
UK Support and Climate Finance: "Initial UK support, such as grants to Cayman, demonstrates solidarity with the Overseas Territories," mentioned Benito. "However, we seek further assistance in accessing climate finance to fund resilient infrastructure projects, which are essential for long-term sustainability."
Potential Legal Challenges and Public Registers: "There are precedents in the EU and US regarding public registers. The ECJ judgment allows member states to introduce them voluntarily. Moreover, the ECHR could potentially support challenges against public registers under human rights grounds," elaborated Oliver Cooper, highlighting legal strategies for OTs.
Impact of Labour Government on Financial Services: "The Labour Government presents both opportunities and risks for international finance centres like the BVI. Early engagement and proactive communication will be key to navigating potential policy shifts," emphasized Mitchell Cohen.
The BVI Finance Breakfast Forum concluded with a call for continued dialogue, collaboration and a modern partnership between the Overseas Territories and the UK Government, focusing on mutual interests and strategic priorities.
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