If the British Government raises taxes further, more UK companies will consider moving their domiciles to lower-tax jurisdictions.

That is the view of Michael Spencer, chief executive officer of Icap, the world's largest inter-dealer broker, who is also treasurer of Britain's Opposition Conservative Party.

Bermuda is already home to several Lloyd's of London insurers, including Hiscox and Catlin, and would be a candidate to attract more UK companies if the British Government tries to cut its escalating debt by raising corporate taxes.

In an interview with The Sunday Telegraph, Conservative Party treasurer Mr. Spencer disclosed that the issue of a move is regularly on the agenda at Icap because of the rising costs of being domiciled in the UK. He also said "a hell of a lot of high producers" would also leave but refused say whether he included himself.

"If the Conservatives are not elected and if Labour continue to increase taxes as they probably will then regrettably we would presumably have to reconsider moving domicile," Mr. Spencer said.

"In every company that's properly managed the directors have a duty to their shareholders, and our duty to our shareholders encompasses from time to time considering whether their best interests are served by moving the domicile to another country."