Anguilla has agreed to undertake a study of the impact of low taxation on the country's economy.

A report done for the British government last month stated that Anguilla and other overseas UK territories must find new methods of raising taxes as they battle the economic crisis.

The report warned that Anguilla reserves could run dry by the end of the year.

The territory's Finance Minister, Victor Banks said the British Government will fund the study.

He said any recommended tax changes will depend on wide public consultation.