UK report on offshores is published

A report into the long-term viability of the Isle of Man and other offshore financial centres has concluded the Manx economy has adjusted well to the global economic downturn.

But the Foot Review makes it clear that if more stringent tax rules were imposed on the Crown Dependencies and Overseas Territories, investment would go to non-United Kingdom jurdisdictions.

Michael Foot's report was ordered by the UK government almost a year ago, as the downturn left economies around the world in crisis.

Initially questions were raised about the Foot Review's agenda.

It was commissioned by UK chancellor Alisitair Darling last December, in the wake of his comment that the Isle of Man was 'a tax haven sitting in the Irish Sea' .

Its remit was to examine the threats and challenges to offshore jurisdictions caused by turmoil in financial markets.

On the positive side, the report recognises the Isle of Man's pledge to move to automatic exchange of information with EU members, and praise for its ombudsman complaints scheme.

Tony Brown says he's pleased Mr Foot acknowledges the Island's contribution to the UK economy by routing funds to the City totalling more than £330 billion pounds in one quarter this year.

But if more rigid regulations are imposed, it seems the UK offshores would find themselves less attractive to investors, who would take their money elsewhere.

The report was carried out before last week's 'VAT bombshell', and the effect of that on the Island's long term prosperity has yet to be seen.