Rishi Sunak has been put under investigation by parliament’s sleaze watchdog amid claims he failed to declare a conflict of interest.
The prime minister is facing questions after it emerged that a childcare agency part-owned by his wife Akshata Murty would benefit from policy changes in the budget.
The prime minister did not mention his wife’s interest when speaking about the childcare reforms at a parliamentary committee last month – despite being asked if he had anything to declare.
In an announcement on Monday, the parliamentary commissioner for standards said the prime minister was being probed because of a possible failure to declare an interest.
A Downing Street source confirmed that the investigation related to the childcare agency.
The probe is not the first time Ms Murty’s finances and business interests have put the political spotlight on her husband.
The heiress and venture capitalist, who is worth hundreds of millions of pounds, was criticised after The Independent revealed last year that she was avoiding tax by assuming non-dom status.
She later renounced the status after the revelations caused an outcry.
Mr Sunak was specifically asked about possible conflicts of interest relating to the budget when he appeared at a hearing of the Liaison Committee last month.
Asked whether he had anything to declare at the time by Labour MP Catherine McKinnell, he said: “No, all my disclosures are declared in the normal way.”
A No 10 spokeswoman said: “We are happy to assist the commissioner to clarify how this has been transparently declared as a ministerial interest.”
Koru Kids is one of six private childcare agencies being consulted on a pilot scheme as part of the government’s childcare overhaul announced in the Budget.
The government is to test incentive payments of £600 for childminders joining the profession, and £1,200 if they join through an agency like the one part-owned by the prime minister’s wife.
Such agencies are expected to see a major increase in business as a result of the plans, which reward childminders double for using an agency.
Liberal Democrat chief whip Wendy Chamberlain said the revelations amounted to “another day and another accusation of a Conservative prime ministers bending the rules”.
“After months of Conservative sleaze and scandal, the public just want a government who are focused on the country, rather than saving their own skin.”
In January Mr Sunak was fined for not wearing a seatbelt in the back of a car, and last year he paid a fine for breaking Covid regulations in the course of the Partygate scandal.
Mr Sunak also raised eyebrows after it emerged that he held a US green card, declaring himself a permanent resident of the United States while living in Downing Street.
Downing Street said the Prime Minister would clarify how the company ownership had been declared as a ministerial interest, rather than to the Commons.
Mr Sunak says he declared the ownership to the Cabinet Office, but it was not included in the latest register of ministerial interests, which dates from May 2022.
In a letter to the Liaison Committee dated 4 April 2023 Mr Sunak 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.
“The latest List of Ministerial Interests will be published shortly by the Independent Adviser, Sir Laurie Magnus. This regime ensures that steps are taken to avoid or mitigate any potential conflict of interest, and that the interests of Ministers’ spouses or partners are not something that would influence their actions either as Ministers or as Members of Parliament. I shall arrange for a copy of the List to be placed in the Library of the House.”
Angela Rayner, Labour’s deputy leader, said the prime minister should publish his register of interests before the May elections the prove he had “nothing to hide”.
“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,” she said.
“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.”
