Anguilla’s fiscal discipline offers lessons for BVI

As the BVI continues to advocate for less scrutiny and oversight from the UK, Anguilla’s Premier Cora Richardson-Hodge has hinted that stronger self-sufficiency and sound fiscal management helped her country to regain control over its own affairs and avoid direct intervention from London.

Speaking during a panel discussion at the BVI’s Diplomatic Week 2025, Premier Richardson-Hodge was asked if she had any advice for the BVI, stemming from the difficult period when Anguilla’s economy collapsed after the 2008–2009 global downturn.

This caused the UK to approve and oversee Anguilla’s national budget, something Richardson-Hodge said taught valuable lessons about building fiscal resilience and regaining control of their country from the UK.

“It’s said that Anguilla fell off the cliff in the wake of the economic downturn,” Richardson-Hodge said. “For a number of years, we had difficulties, and the UK government had to ultimately approve our budget. There were certain parameters we had to meet.”

She added: “I recall the pains and the struggles at that time. But fast forward to today — we have come out of that situation. We recently passed a budget, and that budget would have, once we met certain parameters, there was no issue from the UK government.”

A key factor in Anguilla’s fiscal turnaround was tax reform. The Premier said her government had to introduce reforms to strengthen the economy and also put aside funds to respond to emergencies.

“One thing we were able to do as well was to reform a goods and services tax that had been implemented in 2022,” Richardson-Hodge indicated. “[We had to ensure] that we had a broad-based tax and that we were able to meet our financial obligations when they arose, that we were able to have sufficient funds to address situations such as natural disasters, etc.”

“At the end of the day, once we continue to meet certain parameters, we’re in a position to take care of ourselves — the UK has little to say,” the leader added.

Her remarks carry particular relevance for the BVI, which remains under close UK scrutiny following the 2022 Commission of Inquiry that exposed serious governance failures. The UK maintained an Order in Council over the BVI for more than two years, allowing it to suspend the Territory’s constitution if governance reforms faltered.

BVI leaders, including Premier Dr Natalio Wheatley, have repeatedly called for greater flexibility from the UK, arguing that local institutions are capable of managing the territory’s affairs responsibly.

But Richardson-Hodge’s comments suggest that credibility must be earned through tangible performance — not just constitutional debate.