In a recent development which might pose problems for Overseas Territories and Crown Dependencies, a report by the British Treasury is all set to demand that these raise taxes to save from getting crushed under the economic crisis. It is being feared that British might have to bail out tax havens which are currently showing signs of acute financial stress, and in order to save others from the same fate, the country's authorities are urging Jersey, the Isle of Man, Cayman Islands, and others to take necessary steps now.

"Crown Dependencies", said the Treasury Report drafted by Sir Michael Foot, a former director of the Bank of England, "make a significant contribution to the liquidity of the UK market". In the year's second quarter reports it was confirmed that these provided funds to the British banks which totaled to a whopping $323 billion (?195 billion). Out of the total funds, Jersey's contribution was $218 Billion while $74 Billion and $40 Billion came from Guernsey and the Isle of Man, respectively.

In light of the recent demands made by UK's Treasury Report, the current nine Crown Dependencies and Overseas Territories have been faced with difficult decisions. These might have to change their stance to taxes to maximize the revenue currently generated, which is important if they want to survive the current economic times.

Some now face difficult decisions and will need to look afresh at options for controlling public expenditure and increasing revenue", said Sir Michael.