Panama Papers: David Cameron accused of being ‘dictated to by tax havens’ after failing to secure public registers deal

Oxfam chief executive ‘deeply disappointed’ PM has not forced overseas territories to reveal who ultimately benefits from offshore funds

Oxfam have said the Prime Minister is 'failing to act in the interests of the UK and the world's poorest people' (PA)

David Cameron has allowed himself to be “dictated to by tax havens”, Oxfam has claimed, after the Government failed to secure agreement for public lists showing who owns companies in Britain’s overseas territories.

The charity’s chief executive said he was “deeply disappointed” that the Prime Minister had not forced Crown Dependencies and overseas territories which operate as tax havens, such as the Cayman Islands and British Virgin Islands, to make the registers, which reveal who ultimately benefits from offshore funds, fully public.

Instead the Government has agreed a system whereby UK law enforcement and tax agencies will be able to access to the registers, which will be held by the companies’ themselves.

Labour leader Jeremy Corbyn challenged Mr Cameron over the decision at Prime Minister’s Questions after the premier of the Cayman Islands, Alden McLaughlin, issued a statement hailing the deal and saying he was “glad and proud” that his government’s “perseverance” in persuading the UK that public registers were not required had “finally paid off”.

Mr Cameron said the deal had been necessary because otherwise some overseas territories “might have walked away from this co-operation altogether”, but conceded there was more to do.

But Mark Goldring, Oxfam’s chief executive, said: "It's deeply disappointing that the Prime Minister is allowing himself to be dictated to by tax havens, especially given the huge public anger about tax dodging following the Panama Papers' publication. Instead of delivering on his promise to make tax dodgers 'wake up and smell the coffee', the Prime Minister today put up a Do Not Disturb sign.

“David Cameron has often stressed the importance of transparency in tackling all forms of corruption but by dropping efforts to end offshore secrecy he is failing to act in the interests of the UK and the world's poorest people - both of whom lose out to tax dodgers.

“The UK is about to introduce a public register of the real 'beneficial' owners of companies - if Britain is able to do this without problems, why can't the British Virgin Islands and other UK-linked territories, too?”

Labour has published a set of new measures it said would help tackle tax avoidance including “strict minimum standards” for overseas territories and Crown Dependencies that would include public registers of owners, directors, major shareholders and beneficial owners.