Tag Archives: british overseas territories

The Liberal Democrats’ Defending Democracy policy paper calls for a codified UK constitution. If democratic consent and self-government matter at home, they must also shape our relationship with Britain’s 14 Overseas Territories, ten of which have permanent populations. In 2025, UK and Territory leaders agreed to develop voluntary Partnership Compacts, and in September 2026 the UK published a Charter affirming “devolution and democratic autonomy” and “nothing about you without you”. These are welcome commitments, but they must translate into a more equal constitutional partnership.

Recognising national identities

“Dependent Territories” became “Overseas Territories” in 2002, reflecting a move towards partnership. Yet there is still room to consider how the constitutional relationship can better recognise the distinct identities and democratic aspirations of each Territory. For some islanders, their primary sense of identity may be rooted in their own island and community, rather than in English, Scottish, Welsh or Irish identity. For others, local and British identities may coexist. These identities should be recognised on their own terms, rather than assumed to fit a mainland British model.

A survey conducted in Gibraltar in 2000 and reported in 2001 found that 45% of respondents identified as both Gibraltarian and British. Though dated and specific to Gibraltar, this illustrates how identities can overlap. We should invite discussion with Territory governments and communities about whether the term “British Overseas Territory” remains appropriate, or whether alternatives such as “British Overseas Nation” would better reflect the identities of some communities. 

A partnership in Official Development Aid

Financially self-sufficient Territories should be invited to invest in overseas development alongside British International Investment (BII), combining development benefits with financial returns.

A voluntary co-investment scheme could direct Territory government or institutional capital into independently managed projects, such as small-business finance and climate-resilient infrastructure. In 2025, BII, Zambia’s pension authority and Sweden’s Swedfund launched a platform with an initial close of about £52 million to finance Zambian small businesses.

Some Territories have institutions that could explore similar opportunities. Cayman’s Public Service Pensions Board held around £1.3 billion in assets at the end of 2024, while the Falkland Islands Government reported a £156.7 million Growth Fund in its 2025 accounts. Any investment must have local approval, credible returns and safeguards for pensions, public services and reserves. Participation must remain voluntary, with no expectation that Territories dependent on UK budget support contribute. Britain could invite interested Territories to design a pilot with BII.

Putting elected representatives in charge