From Barrie Stevens.
THE UK does not need to impose constitutional change or directly interfere with Island tax rates and fiscal autonomy by way of the intended review. The ability to do this by auto-suggestion and proxy is already built into the system.

Allegedly the planned UK review of smaller British jurisdictions – aka financial centres, according to the UK Chancellor, and for which it is ultimately responsible as the sovereign metropolitan power – will examine the robustness or otherwise of their financial stability so as to be sufficiently self-funding in the face of economic global turmoil. Effectively, the UK is exercising its responsibility to ensure ‘good government’.

Curiously, the UK does not define what form that economic turmoil might take or say if it will be a deliberate political creation. A continuance or worsening of current conditions? New and unified global political developments regarding delinquent taxes instigated by co-operative cash-hungry governments?

Perhaps London foresees future turmoil evolving, consequent to pressure applied to reduce or terminate the tax sensitive role of UK sovereign ‘financial centres’ so as to create a state of tame dependence on the existing, or some ‘to be nominated’ metropolitan power? A closer fiscal relationship with the EU under UK auspices as an existing member of the British Islands group is a possibility.

Seeds of turmoil have been sown in that so many banks globally are propped up or nationalised such that the taxpayer is effectively the guarantor of whatever credit exists, even to the extent of securing the very existence of offshore banks and the like intent, however legally, in facilitating tax ‘avoidance’.

The UK Chancellor’s pre-Budget report referred to the need to review the ‘long-term opportunities and challenges for the UK’s Crown Dependencies and overseas territories as financial centres’. Their life blood, in other words. It specifically includes fiscal arrangements as a target.

London must avoid interfering with existing autonomy in order to avoid a premature exodus of funds and institutions. If it be the political intent, then the UK will carefully ensure that the islands are gradually forced to rely almost solely upon internal tax and spend powers, thus creating the circumstances necessary to bring Island parliaments to heel through that democratic self-determination which UK sovereign risk itself serves to guarantee.
Direct interference would implicate the UK in assuming the burden of financing the islands as offshore counties by compensating for what it had effectively destroyed when EU involvement may be the long-term plan.
Being 80% dependent for government funding on the goodwill of the UK via a Customs and Excise agreement, we can be certain that the Isle of Man will not take much pushing down whichever road the UK may finally ‘suggest’!
4 Leigh Terrace,
Douglas,
Isle of Man.