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Progress Report includes warnings from UK

The initial report by Michael Foot into British offshore financial centres has flagged up a number of areas of concern.

It also warns of growing international initiatives against tax abuse.

Business editor John Moss has been looking at what's called a Progress Report (text, below, from attached audio file):

In a confident reply, the the Manx government speaks of the "new world that is emerging", and that's the key phrase.

In the review itself are comments such as "the need to have the infrastructure in place to deal with major shocks" and "to consider funding implications for a major call on a compensation scheme".

Mr Foot is building a picture of jurisdictions which could prove fiscally fragile, should the cold winds blow for any length of time.

The review gives the impression of concern from the UK that their dependencies might prove just that should things take a downturn.

In its bullish response, the Manx Government speaks of the review being "a wholly appropriate action, given the financial turmoil" and cites its 14 tax agreements and its place on the OECD white list.

But the review clearly indicates that Gordon Brown expects every jurisdiction not just consider the new landscape, but to actively move to become part of it.

Clip 1

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