Rishi Sunak news – live: Chancellor defends wife over non-dom tax status as Labour demands answers

Our politics reporter Adam Forrest writes:

The Liberal Democrats have called for the cabinet secretary to launch an investigation into chancellor Rishi Sunak after reports emerged that he previously held a US Green Card.

Lib Dem leader Ed Davey has written to the cabinet secretary Simon Case – and the Independent Adviser on Ministers’ Interests Lord Geidt – urging them to open an investigation into whether Sunak broke the ministerial code by failing to declare his residency in the US.

Sir Ed Davey MP: “How could the man who is responsible for UK tax policy regard any permanent residency status for the United States as acceptable? This would be a huge conflict of interest – and a serious breach of the ministerial code.”

“Rishi Sunak must come clean about his own financial arrangements and whether he has ever held a Green Card. If he will not, then we need an independent investigation to get to the bottom of this.”

British chancellor Rishi Sunak is facing questions after The Independent revealed that his wife, Akshata Murthy, pays no tax in the UK on her vast foreign earnings, potentially saving her millions of pounds.

In a statement on Thursday, the chancellor defended his family’s financial affairs and hit out at what he called “smears” directed at his family, adding that scrutiny of his wife was unfair because she is a “private citizen”.

To understand Ms Murthy’s tax liability in India, experts said that is important to first clarify whether she is a resident or non-resident taxpayer in the country, writes Sravasti Dasgupta.

Outgoing Met Police commissioner Cressida Dick has warned against the “politicisation of policing”, saying this is “a threat not just to policing but to trust in the whole criminal justice system”.

She left Scotland Yard for the final time this morning – though her official end of employment date with the Met is 24 April – and was applauded by officers as she walked out.

Sky’s Scott Beasley reports:

In a “letter to London”, which she wrote to mark the end of her post, Dame Cressida said:

“Of course as I look back there is more I wish we had achieved. We hear the criticism, know not everyone has confidence in us to provide a good service when they need us, and have seen among us those whose horrific actions have let you all, and us, down so terribly.

“Each one drives us to get better, to root out those who don’t uphold our standards and don’t deserve to wear our uniform. To improve our response so all our communities feel protected by us.

“We are listening and acting on what you tell us so we can change for the better. Just this week we launched our violence against women and girls plan, shaped by the views of hundreds of Londoners.

“The current politicisation of policing is a threat not just to policing but to trust in the whole criminal justice system. Operational independence from local and central government is crucial for an effective democracy and is a model respected around the world. We must all treasure and protect it.”

Chancellor Rishi Sunak and his allies have hit out at “unpleasant smears” as he came under scrutiny over his wife’s tax-reducing non-domiciled status, while No 10 denied being behind the leaks.

Ms Murty, who married the chancellor in 2009, has confirmed she paid £30,000 to hold non-dom status after The Independent revealed the arrangement earlier this week.

Mr Sunak has blamed Labour for the tax details emerging, but his allies have told newspapers that they suspect No 10 of trying to undermine the chancellor – who has been seen as a favourite to succeed Boris Johnson in any leadership challenge. A No 10 spokeswoman denied the PM’s office was sharing any details.

Adam Forrest has more:

German chancellor Olaf Scholz arrived at Downing Street within the last half an hour for talks with Boris Johnson on reducing Europe’s dependence on Russian gas following the attack on Ukraine.

The UK prime minister greeted Mr Scholz at the door of No 10 at 2.13pm on Friday.

Mr Scholz smiled and nodded at reporters gathered outside before shaking hands with Mr Johnson.

They are set to hold a press conference later this afternoon, after talks behind closed doors.

Sadiq Khan says he is not “going to hide from the fact” he lost confidence in outgoing Metropolitan Police commissioner Dame Cressida Dick.

Speaking at the launch of Labour’s local election campaign in Barnet, north London, the London mayor said:

“In the recent past, she’s worked with many others to help us reduce violent crime but I’m not going to hide from the fact that I lost confidence in her.

“I’m not going to hide from the fact that we’ve had in our city a series of devastating scandals, overt racism, sexism, discrimination, homophobia, we’ve had trust and confidence from Londoners in the police service at rock bottom.

“It’s one of the reasons why I lost confidence in her and it’s one of the things I’ll be looking for in a new commissioner, how they will address some of these serious issues that, frankly speaking, the current commissioner failed to address.”

Dame Cressida quit after Mr Khan criticised her handling of racist, misogynist and homophobic messages shared by a group of officers based at Charing Cross police station and after a series of other scandals faced by the Met.

Her resignation, which came hours after she said in a media interview she had no intention of quitting, was greeted with dismay by many officers.

Dame Cressida’s last day in post will be on Sunday, after which she will take unused annual leave, with her final day of employment being 24 April.

Conservative MPs appear to be defending Rishi Sunak by pushing the message that the chancellor and his wife have not broken the law over their household finances.

Asked about the situation by the BBC on Friday, transport secretary Grant Shapps said: “I don’t think it’s really appropriate for me to comment on the wives and families of politicians.”

And he said: “The most important thing is that the same rules apply to everyone. There is no suggestion that any of this steps outside of the rules and regulations.”

It comes after senior Tory MP Tobias Ellwood suggested the rules around non-dom taxes needed reviewing, rather than blaming Mr Sunak.

“Every minister, when you enter government, has to make a declaration … which is confirmed to be legal before you can take up the post, so there’s nothing illegal about what’s bee done by the chancellor whatsoever,” he told Sky News earlier.

Our politics reporter Adam Forrest has this:

Labour leader Keir Starmer has said Rishi Sunak must “come clean” about his family’s tax affairs following revelations about his wife’s tax-reducing non-domiciled status.

“There is no argument to say those who have had their taxes increased aren’t entitled even to know if the chancellor’s family … are making use of schemes to reduce their own tax burden,” he said.

“There are simple questions, we need simple answers from the chancellor has his family.”

Starmer also said: “I think as we’ve seen in the last few days, I think the Sunaks will probably be alright in this cost-of-living crisis.”

He added: “At least we’ve solved one mystery that’s been alluding me for the last few days – we now know why the chancellor calls himself a tax-cutting chancellor.”