Luxembourg is about to shed its reputation as one of the EU’s largest tax havens

Cracks to international pressure.

Luxembourg Finance Minister, Luc Frieden, announced today that Luxembourg was willing to share account information on global multi-national companies going forward. This extends current information sharing agreements which are limited to US and EU individual tax payers.

"Luxembourg is comfortable to share information about multinationals as well as individuals," Mr Friedan said. This will help shed Luxembourg’s reputation as one of the EU’s largest tax havens.

According to WealthInsight, Luxembourg is the 5th largest private banking centre in the world with assets under management (AuM) of US$350 billion at the end of 2012.

Luxembourg also had mutual fund assets of US$2 trn and additional bank assets of US$550 bn as of year-end of 2012. These figures together amount to US$2.8 trn, which equates to almost 50 times Luxembourg’s GDP of US$57 bn in 2012.

It also equates to over 30 times the total wealth held by locals in the country (US$91 bn). This is an extremely high ratio when considering that Luxembourg is one of wealthiest countries in the world (in per capita terms).

According to the Credit Suisse Wealth Report, Luxembourg has the 8th highest wealth per capita,in the world at US$178,000 per person. This is well above the worldwide (US$28,000) average. Notably, Switzerland is the highest ranked country based on this measure with wealth per capita of US$293,000, followed by Norway in 2nd place (US$243,000) and Australia in 3rd place (US$239,000). The United States had a wealth per capita of US$172,000.

Going forward, WealthInsight expects Luxembourg private banking AuM to stay remain relatively static at US$350 bn, while countries such as Singapore surge ahead.

Singapore is expected to have private banking AuM of over US$2 trillion by 2020, compared to US$550 bin in 2012 and US$50 bn in 2000.

Photograph: Getty Images

Andrew Amoils is a writer for WealthInsight

How Jim Murphy's mistake cost Labour - and helped make Ruth Davidson

Scottish Labour's former leader's great mistake was to run away from Labour's Scottish referendum, not on it.

The strange revival of Conservative Scotland? Another poll from north of the border, this time from the Times and YouGov, shows the Tories experiencing a revival in Scotland, up to 28 per cent of the vote, enough to net seven extra seats from the SNP.

Adding to the Nationalists’ misery, according to the same poll, they would lose East Dunbartonshire to the Liberal Democrats, reducing their strength in the Commons to a still-formidable 47 seats.

It could be worse than the polls suggest, however. In the elections to the Scottish Parliament last year, parties which backed a No vote in the referendum did better in the first-past-the-post seats than the polls would have suggested – thanks to tactical voting by No voters, who backed whichever party had the best chance of beating the SNP.

The strategic insight of Ruth Davidson, the Conservative leader in Scotland, was to to recast her party as the loudest defender of the Union between Scotland and the rest of the United Kingdom. She has absorbed large chunks of that vote from the Liberal Democrats and Labour, but, paradoxically, at the Holyrood elections at least, the “Unionist coalition” she assembled helped those parties even though it cost the vote share.

The big thing to watch is not just where the parties of the Union make gains, but where they successfully form strong second-places against whoever the strongest pro-Union party is.

Davidson’s popularity and eye for a good photo opportunity – which came first is an interesting question – mean that the natural benefactor in most places will likely be the Tories.

But it could have been very different. The first politician to hit successfully upon the “last defender of the Union” routine was Ian Murray, the last Labour MP in Scotland, who squeezed both the  Liberal Democrat and Conservative vote in his seat of Edinburgh South.

His then-leader in Scotland, Jim Murphy, had a different idea. He fought the election in 2015 to the SNP’s left, with the slogan of “Whether you’re Yes, or No, the Tories have got to go”.  There were a couple of problems with that approach, as one  former staffer put it: “Firstly, the SNP weren’t going to put the Tories in, and everyone knew it. Secondly, no-one but us wanted to move on [from the referendum]”.

Then again under different leadership, this time under Kezia Dugdale, Scottish Labour once again fought a campaign explicitly to the left of the SNP, promising to increase taxation to blunt cuts devolved from Westminster, and an agnostic position on the referendum. Dugdale said she’d be open to voting to leave the United Kingdom if Britain left the European Union. Senior Scottish Labour figures flirted with the idea that the party might be neutral in a forthcoming election. Once again, the party tried to move on – but no-one else wanted to move on.

How different things might be if instead of running away from their referendum campaign, Jim Murphy had run towards it in 2015. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

0800 7318496