Profitable peripherals
Think tank: Adam Smith Institute
Author(s): James Kingston
February 25, 2025
This report from UK think tank the Institute of Economic Affairs argues that the UK should use its offshore network to embrace financial and technological innovation.
Territories (CDOTs) are not a ‘Second Empire’ of illicit finance, but indispensable pillars of the UK’s economic strength.
Far from being strategic liabilities, these jurisdictions act as sophisticated conduits that funnel international capital into the British economy. For instance, capital intermediated through Jersey alone supports nearly one million UK jobs annually. The analysis contends that both the UK and CDOTs are integral components of a broader, US-led global financial system.
Post-Brexit, the Government should leverage these ‘profitable peripherals'”‘ as regulatory laboratories for emerging sectors like AI, blockchain, and space finance. By fostering closer integration and rejecting punitive oversight, the UK can secure its status as a premier global hub against rising competition from Dubai and Singapore
