UK politician, Ed Miliband is threatening to put Jersey and Guernsey on a tax black-list unless measures are made to improve transparency.
He says if the Labour Party are voted in during the next election, he will take action within six months of coming into power.
Labour has reiterated Ed Miliband's warning that if Labour comes to power he will penalise the islands for being tax havens.
The party's Shadow Exchequer Minister, Shaban Mahmood, met with Guernsey's Treasury Minister today.
But she did say that Labour are listening to Guernsey's message on tax.
Jersey's Chief Minister has responded to Ed Miliband's threats to put the island on a tax black-list by inviting him to Jersey.
Lord Mandelson said he strongly supported the Labour leader and dismissed claims that he had 'sounded out' a possible replacement.
Offshore tax havens would have just six months to open their books or face international blacklisting if Labour win the election in May.