The Royal Gazette’s exclusive interview last week with Henry Bellingham, the UK Minister responsible for British Overseas Territories, suggests that relations between the Island the UK are improving.The Conservative Party, the senior partner in the Coalition, has always had a relatively hands off attitude towards Bermuda.That’s a change from Labour, which has always had an ambivalent feeling about colonies, and tended to give the sense that it would really rather not be bothered with them.The exception to that rule was the decision to give British citizenship to the remaining OTs, a decision which has bound them more closely than ever to the UK.What is most welcome is the news that Mr Bellingham, and by extension, the UK government, does not regard Bermuda as a tax haven.Indeed, his words should comfort international companies in Bermuda: I wouldn’t describe Bermuda as a tax haven, I’d describe Bermuda as being a very well run country that is able to have low taxes because it’s got a very strong economy that is able to deliver enough wealth and prosperity to supply services like schools, health, law and order all the essential services a country needs.”Having said that, Bermuda may face more competition from the UK in the future. The decision to lower corporation tax means that fewer UK companies will consider redomiciling, and, as Mr Bellingham said, some may consider a return to the UK.That’s fair enough in the context of open competition; it means Bermuda will have to compete on location, infrastructure and quality of service and cannot rely on different tax structures. In the long term, that is welcome.Mr Bellingham also reiterated the long-standing position that Independence is purely a decision for Bermuda.“We’re not going to do anything to encourage them to go independent, but on the other hand, they know their future is in their hands. So long as they want to remain British, we will cherish that and do all we can to work in partnership in a tough global economy,” he said.This approach means very little will change in Bermuda’s attitude towards Independence as long as the advantages of remaining an Overseas Territory outweigh the genuine frustrations of being a colony.Nonetheless, the relative benefits and disadvantages will shift from time to time. One such example is the UK’s decision to raise university fees, which will make British universities slightly less popular than they have been since Bermudians were able to pay the same fees as UK residents.Nonetheless, because the fees are still affordable and competitive with North American universities, this should not make a major change.The other significant development, of course, is that Premier Paula Cox, although she has clearly, and rightly, been forthright in speaking for Bermuda, is also unlikely to pick a fight with the UK for the sake of it. That alone should lead to better relations.