Rishi Sunak investigated after 'failure to declare wife's interest'

Rishi Sunak is under investigation by Parliament’s sleaze watchdog over a possible failure to declare his wife’s interest in a childcare agency.

The inquiry relates to shares Akshata Murty holds in the firm Koru Kids, which was boosted by the Budget.

Daniel Greenberg, the parliamentary commissioner for standards, opened the investigation last Thursday, under rules demanding that MPs are “open and frank” when declaring their interests.

The relevant section reveals: “Members must always be open and frank in declaring any relevant interest in any proceeding of the House or its committees, and in any communications with ministers, members, public officials or public office holders.”

Technically, Mr Sunak could face suspension from the House if he does not agree to correct the record in retrospect.

Downing Street said the Prime Minister will clarify how it was declared as a ministerial interest, rather than to the Commons.

A No 10 spokesman said: “We are happy to assist the commissioner to clarify how this has been transparently declared as a ministerial interest.”

Mr Sunak faced demands to “come clean” about his family shares last month after being questioned by MPs over why the childcare policy favoured private firms.

Appearing before the liaison committee, he did not mention Ms Murty's shares in the firm, in which she has been listed as a shareholder on Companies House.

A fortnight earlier, Jeremy Hunt, the Chancellor, announced a pilot of incentive payments of £600 for childminders joining the profession.

Questioning why the sum doubles to £1,200 if workers sign up through an agency, Catherine McKinnell, the Labour MP, asked if Mr Sunak had any interests to declare.

“No, all my disclosures are declared in the normal way,” said Mr Sunak.

Koru Kids, which is one of six childminder agencies listed on the Government's website, welcomed the new incentives in the Budget as “great”.

At the time the possible conflict of interest emerged, Mr Sunak's press secretary said the interest would be included in the updated statement of ministers' interests, due out in May.

But Mr Greenberg's investigation appears to centre on whether the Prime Minister should have declared the interest to MPs.

Mr Sunak wrote to the liaison committee to clarify a number of issues that were raised with him during his appearance in front of the committee on March 28.

On the shares issue, he said: “I note that there has been some media coverage relating to the minority stake my wife has in relation to the company Koru Kids.

“I was being asked questions by the committee in my capacity as Prime Minister. I would like to clarify for the parliamentary record that this interest has rightly been declared to the Cabinet Office.”

He said the new list of ministerial interests, which has not been updated for nearly a year, would be published “shortly”.

Angela Rayner claimed Mr Sunak was “dodging proper scrutiny”.

The deputy leader of the Labour Party said: “This Government's failure to update the rules or publish a register of ministers' interests in nearly a year has left a transparency black hole which is enabling the Prime Minister and those he has appointed to dodge proper scrutiny of their affairs.

“If Rishi Sunak has got nothing to hide, he should commit to publishing the register before May's elections so the public can see for themselves.

“While this Prime Minister fails to deliver the integrity he promised and preserves the rotten standards regime he inherited as the Tories resist tighter rules, Labour has a plan to clean up politics with an Independent Ethics and Integrity Commission to restore standards in public life.”

The register of ministerial interests was last compiled by Lord Geidt, who resigned as Boris Johnson’s ethics adviser after a tumultuous period under the then-prime minister.

Mr Sunak did not appoint a successor as ministerial interests adviser until December, when Sir Laurie Magnus took on the role.

The Prime Minister entered No 10 in October promising “integrity, professionalism and accountability at every level”.

He has since been fined by police for not wearing a seatbelt, adding to the fixed penalty notice he was handed for a coronavirus lockdown breach alongside Mr Johnson.

Wendy Chamberlain, the Liberal Democrat chief whip, said: “Another day and another accusation of a Conservative prime minister bending the rules.

“After months of Conservative sleaze and scandal, the public just want a government which is focused on the country, rather than saving their own skin.”