In a letter to the JEP which sheds new light on the relationship between Jersey and Westminster, Sir Philip Bailhache says that the Treasury has been ‘hostile and unfriendly from the start’.

He says: ”From information received from our European advisers, it is an open secret that the pressure to amend zero-ten is coming not from the EU but from the Treasury itself, which is driving the opposition to the zero-ten policy.’

The letter comes days after a rift between Treasury Minister Philip Ozouf’s department and their counterparts in Whitehall was revealed over the ongoing dispute about the Island’s zero-ten tax regime.