The UK government has pulled a debate on imposing beneficial ownership laws on the island - and so averted for now a potential constitutional crisis.

A group of 40 MPs led by Labour’s Margaret Hodge and ‘Plebgate’ Tory Andrew Mitchell had tabled amendments to the Financial Services Bill which would have forced the Crown Dependencies to create a public register of the real owners of companies.

Chief Minister Howard Quayle joined counterparts from Jersey and Guernsey for meetings with MPs in London today (Monday) to object to the ’wholly unnecessary’ move.

But the debate was pulled at the 11th hour. Mrs Hodge said the Westminster government had taken the ’outrageous step’ as it knew those in support of the amendments commanded a majority.

The bill is one of several pieces of crucial legislation required to be passed before the UK leaves the EU. In a statement the governments of Isle of Man, Jersey and Guernsey welcomed the decision to defer the debate.

It said: ’This deferral provides the opportunity for meaningful engagement with UK Ministers and parliamentarians, in a way that does not contravene the well-established constitutional relationships between our islands and the Crown.

’In particular, we want to move forward in a way that does not breach the rule that the UK does not legislate for the Crown Dependencies on domestic matters without our consent.

’All of the Crown Dependencies observe the highest standards of financial services regulation and transparency.

’We share a common policy aim with the UK of preventing international financial systems being used for criminal activity.

’We are committed to exchanging adequate, accurate and current information on beneficial ownership to combat tax evasion, money laundering and corruption. Our track records on this matter demonstrates that commitment.

’We are determined to work with the UK Government, the OECD and FATF in order to develop an effective global standard that addresses the global problems of financial crime and tax evasion.’