Hodge Urged BVI to Abandon Finance
Deputy Premier Julian Fraser says UK envoy Baroness Margaret Hodge suggested the British Virgin Islands should shift away from financial services and focus on tourism during her visit. Fraser criticised the envoy for not pressing London to provide development support such as a runway extension while pressing the territory on financial-sector reforms.
Deputy Premier Julian Fraser has publicly accused UK envoy Baroness Margaret Hodge of urging the British Virgin Islands to abandon its financial services sector and pivot instead to tourism during her visit in September 2025. Fraser said Hodge — who was sent by the UK to press the BVI to adopt public registers for company owners in a form London prefers — spent much of her time praising the islands’ beauty and encouraging tourism development. "Baroness Hodge came to Tortola and all she could talk about is how beautiful the island is, and we should concentrate on tourism," Fraser told local media.
He added that she did not advocate for the UK to provide grants or improved borrowing terms to support major infrastructure projects such as an extended runway. The comments come against a backdrop of tense talks between the BVI and the UK over transparency measures. The UK asked Hodge to press for public registers for beneficial ownership; the BVI has implemented its own accessible registers but argued that the UK's specific recommendations would damage an industry that accounts for roughly 70 percent of the territory’s GDP and provides the majority of public-sector funding.
Financial services are a cornerstone of the BVI economy, generating government revenue, supporting thousands of jobs and funding public services. Local leaders have repeatedly warned that undermining the sector without offering meaningful alternatives or compensatory support would risk serious economic harm.
Fraser’s remarks reflect broader frustration among elected officials that while London continues to apply pressure on financial-sector regulation, it has been less forthcoming in assisting the territory with tangible development priorities. Airport expansion — frequently cited by leaders as essential to growing tourism and improving resilience — has been raised as an example where the BVI would welcome direct UK support.
Opposition to the UK’s preferred approach to registers has centred on concerns that one-size-fits-all measures could cripple the industry and the public finances that depend on it. Government officials in the BVI maintain they are working to balance international transparency expectations with protecting an industry they describe as vital to the territory’s future.
As discussions with the UK continue, local leaders say they want assurances that any regulatory changes will not be imposed without consideration of economic impact and without tangible support for long-term development and diversification plans.
Primary source: BVI News