UK Politics

Intense traffic congestion around Dover is partly down to “Brexit scenarios”, according to the head of the British Ports Association.Chief executive Richard Ballantyne said the gridlock was mainly down to the suspension of sailings by P&O Ferries after it sacked 800 workers – but pointed to Brexit bureaucracy as another factor.“There’s still congestion,” he told Sky News on Saturday. “P&O Ferries is out of service at the moment, which is probably the main cause of all the congestion – coupled with one or two other little incidents, and other Brexit scenarios.”Mr Ballantyne added: “We’re hoping things clears as soon as possible, but I appreciate for those stuck in queues at the port and Eurotunnel it must be very frustrating.”Britons trying to travel to France over Easter have been advised to bring food and drink for expected delays, as lengthy queues continue around Dover.The congestion in Kent has mainly blamed on the shortage of ferries caused by the suspension of sailings by P&O Ferries following the controversial mass sacking of seafarers without notice.But problems with a key IT system for post-Brexit customs checks are also contributing traffic chaos around Dover, where thousands of commercial lorries have been stuck in queues.The Road Haulage Association (RHA) said the HMRC was “continuing to have issues” with its new GVMS system for customs declarations needed by hauliers following Britain’s exit from the EU.Drivers lack scannable barcodes needed for the rapid check of lorries at ports including Dover, and temporary workaround could be in place until Monday, the RHA said.A message on the HMRC site says: “We are undertaking robust investigations into our systems to address the underlying issues behind this outage. We will provide a further update by midday, Monday 11 April.”Hauliers have said it has been taking 15 to 20 minutes for each driver to clear checks needed since full customs controls came into force at the beginning of January.A 23-mile stretch of the M20 has been closed to store queues of lorries heading for Dover as part of Operation Brock, while the A20 Roundhill Tunnel has also been closed under the TAP traffic scheme.Dover County Council has said it is ready to declare “a major incident” should the traffic disruption around Dover continue this weekend.Mr Ballantyne said both Operation Brock and Operation Tap were helping prevent “complete breakdown” in Dover town – as well as keeping the port and Eurotunnel operational.“As frustrating as it is for people in queues, it is actually working,” said the ports chief on the traffic management plan.Asked how soon P&O Ferries will able to start up again, Mr Ballantyne said: “There’s politics involved in this … We’re expecting probably imminently an announcement about P&O going live again.”Last month The Independent revealed that that the government is exploring a delay to new controls on imports set to come in July 2022 because of growing alarm over the cost of living crisis.The Cold Chain Federation has warned of a potential “collapse” in trade among “small volume” British businesses if the new Sanitary and Phytosanitary (SPS) inspection of imported agri-food and plant products are imposed in the summer. More

A key ally of Rishi Sunak has defended the chancellor’s wife’s continued non-domicile tax status – insisting that the rules help the UK “attract wealthy people from other countries”.Akshata Murty has announced she will pay UK taxes on all her worldwide income, but it has emerged she could still save £280m in inheritance tax by holding onto her non-dom status.“This is not a tax dodge,” said Conservative MP Kevin Hollinrake on her non-dom status. “It’s a deliberate policy to attract wealthy people from other countries from around the world to the UK on the basis that the create jobs and create wealth.”The backbencher, whose constituency sits next door to Mr Sunak’s, said both Labour and Tory governments had been happy with non-dom rules. “They’re there for a reason,” he told BBC Radio 4’s Today programme.However, Labour said Mr Sunak’s family saved “potentially tens of millions of pounds” through Ms Murty’s non-dom status – and has urged the chancellor’s wife to “pay back all the tax she saved”.Louise Haigh, shadow transport secretary, said Mr Sunak had also failed to be transparent about his family’s tax status at a time when he was raising taxes for the nation.“He has come out on a number of occasions to try and muddy the waters around this and to obfuscate,” the frontbencher told the Today programme.She added: “It is clear that was legal. I think the question many people will be asking is whether it was ethical and whether it was right that the chancellor … benefiting from a tax scheme that allowed his household to pay significantly less to the tune of potentially tens of millions of pounds less.”Top tax expert Richard Murphy said Ms Murty might still be able to avoid up to £280m in inheritance tax because of a “loophole” created in treaty between the UK and India dating back to the 1950s.Mr Murphy said: “This is a massive tax advantage: her potential inheritance tax bill is thought to be as much as £280m on her shares in Infosys, which are estimated to be worth £700m.”It comes as The Independent revealed that Mr Sunak had been listed as a beneficiary of tax trusts British Virgin Islands and Cayman Islands while setting taxes in the UK as chancellor.And Mr Sunak admitted holding a US green card while he was chancellor between February 2020 and October 2021 – paying tax in the States while setting UK tax policy.The Lib Dems accused Mr Sunak of breaking the ministerial code over the green card – pointing to sections which require ministers to be “as open as possible” and ensure “no conflict arises, or appears to arise” between public duties and private interests.The White House refused to be drawn into the residency row – saying it does not have any information on the green card held by Mr Sunak for nearly two years.White House refuses to be drawn into Sunak row after chancellor admits US green cardBoris Johnson has defended his chancellor, and has denied No 10 had been briefing against him. The prime minister also said he had no knowledges of Ms Murty’s non-dom status during Friday’s Downing Street press conference.“I think that Rishi is doing an absolutely outstanding job,” said the PM, before adding: “I don’t think people’s families should be dragged into things.”But few Conservatives have attempted to defend Mr Sunak over his family’s tax arrangements, and some have questioned whether he will ever be prime minister. “His standing has certainly fallen,” one senior Tory told The Independent.Douglas Ross, the Scottish Tory leader, called on Mr Sunak to be “open and upfront” about his family’s tax affairs. “If there are more issues that come up, the public deserve to get answers promptly about it, and I would expect the chancellor to answer those concerns.”The Spectator’s editor Fraser Nelson said: “He misjudged this in that he thought initially that it wasn’t anybody’s business what his wife’s tax status was. If she lives in Downing Street, yes, it’s the public’s business.”Asked if Mr Sunak could still manage the country’s economy, Mr Hollinrake told Today: “Yes, absolutely I do”, before praising the chancellor’s “incredible skill and incredible judgement”. More

Chancellor Rishi Sunak has admitted to holding a green card while living in Downing Street – declaring him a permanent resident of the US.It comes in the wake of The Independent’s revelation that Mr Sunak’s wife, Akhshata Murty, has non-dom tax status, which means she is not required by law to pay UK taxes on her overseas income.A spokeswoman for the MP for Richmond, in Yorkshire, earlier released a statement confirming a Sky News report that Mr Sunak held a green card while he was chancellor until seeking guidance ahead of his first US trip in a government capacity.Overseas applicants must declare an intention to eventually become US citizens if they are to be granted a green card.In addition, holders are required to pay US tax on their global income and also make a legal commitment to make the States their permanent home.But Mr Sunak’s spokesman said he had filed US tax returns while he held the green card, “specifically as a non-resident, in full compliance with the law”, adding “no rules were broken”.As calls for the chancellor’s resignation mount, The Independent takes a look at what green cards are and why it matters that Mr Sunak held one.What is a green card?Known officially as a “permanent resident card”, a green card is a document that grants foreign nationals the right to live and work permanently in the US without becoming a full citizen.According to US inland revenue, anyone who has a green card is treated as a “lawful permanent resident” and is considered a “US tax resident for US income tax purposes”.The eligibility criteria for receiving a green card is either being a relative of full US citizens or a foreign national wanting to live and work in the US.Applications are open to those who can demonstrate “extraordinary ability in the sciences, arts, education, business or athletics, or … are a multinational manager or executive who meets certain criteria,” the green card website reads.Holders of a green card – so named for the coloured card it was historically printed on – must pay tax in America and declare their intention to make the US their permanent home.As such, the chancellor would have been expected to pay tax twice on some of his income – both in the US and the UK.Why does it matter that Rishi Sunak held one?Mr Sunak has been an MP since 2015, yet he only forfeited his green card in October last year.But, according to US citizenship and immigration services (CIS) rules, those serving in a foreign government or standing for an election in a foreign government are not compatible with lawful permanent residence status.Put plainly, Mr Sunak held the green card for nearly two years after becoming chancellor which legally declared him a “permanent US resident” – all the while living in Downing Street.On Friday, prime minister Boris Johnson rushed to defend the chancellor in the wake of the revelations regarding his green card.Mr Johnson said: “As I understand it the chancellor has done absolutely everything he was required to do.”But the Liberal Democrat leader Sir Ed Davey, who had called for cabinet secretary Simon Case to investigate the a “huge conflict of interest” of the US residency, implied Mr Sunak should be fired.“Never mind a green card, it’s time to give Rishi Sunak the red card,” Sir Ed said.Meanwhile, Labour’s shadow chief secretary to the Treasury Pat McFadden questioned why Mr Sunak kept the green card after becoming MP, and whether it gave him “any tax advantage”. More

The White House has said it does not have any information to offer in regard to the US green card held by Rishi Sunak for nearly two years after becoming chancellor which legally declared him a “permanent US resident”.It follows the chancellor’s admission on Friday that he had held a US green card while living in Downing Street. Its holders must pay tax in America and declare their intention to make the US their permanent home.It follows an exclusive report from The Independent which revealed that the chancellor’s wife, Akhshata Murty, has non-dom tax status despite residing in Whitehall – which means she is not required by law to pay UK taxes on her overseas income.An MP since 2015, Mr Sunak only surrendered his green card in October last year – despite the fact that those serving in a foreign government or standing for an election in a foreign government are not compatible with lawful permanent residence status, according to US rules.Citing the US citizenship and immigration services (CIS) manual, a journalist for The Independent asked press secretary Jen Psaki why the White House had not flagged the matter sooner.In reply, Ms Psaki pointed our reporter in the direction of the US state and homeland security departments, adding she had “no more comment from here.”When asked if president Joe Biden saw it as a problem that someone serving at a high level in a foreign government had maintained permanent resident status in the US, she again declined to comment.“I’ll see if there’s more we can provide you,” she said.A spokeswoman for the MP for Richmond, in Yorkshire, earlier released a statement confirming a Sky News report that Mr Sunak held a green card while he was chancellor until seeking guidance ahead of his first US trip in a government capacity.According to US inland revenue, anyone who has a green card is treated as a “lawful permanent resident” and is considered a “US tax resident for US income tax purposes”.She said Mr Sunak continued to file US tax returns, “but specifically as a non-resident, in full compliance with the law”, having obtained a green card when he lived and worked in the States.“As required under US law and as advised, he continued to use his green card for travel purposes,” the spokeswoman said.“Upon his first trip to the US in a government capacity as chancellor, he discussed the appropriate course of action with the US authorities. At that point it was considered best to return his green card, which he did immediately.“All laws and rules have been followed and full taxes have been paid where required in the duration he held his green card.” More

Rishi Sunak has been listed as a beneficiary of tax haven trusts while setting taxes in the UK as chancellor of the exchequer, according to documents seen by The Independent. Trusts in the British Virgin Islands and Cayman Islands, created to help manage the tax and business affairs of his wife Akshata Murty’s family interests, note Mr Sunak as a beneficiary in 2020, according to people familiar with Ms Murty’s financial affairs and evidence reviewed by this publication. Mr Sunak became chancellor in February that year, and had previously been chief secretary to the Treasury since 2019. Documents seen by The Independent show trusts linked to Ms Murty, her family and companies linked to their businesses. In a number of them, Mr Sunak was listed as a beneficiary.Pat McFadden, Labour’s shadow chief Treasury secretary, said Mr Sunak being listed as a beneficiary of tax haven trusts is “extremely serious” and called for answers. He said: “We need urgent answers from the chancellor as to why he has been linked to a tax haven. We need full transparency about this and the other stories about the chancellor emerging over the past 24 hours.”Questions about Mr Sunak’s financial arrangements have come to the fore since The Independent revealed on Wednesday that Ms Murty had non-dom status, meaning she is not obligated to pay UK tax on foreign earnings. Sources also claim that Ms Murty, whose family business is worth £3.5bn, had created a trust which would perpetuate some of these benefits of non-dom status beyond the 15-year limit. In a U-turn on Friday, Ms Murty announced she will now pay UK taxes on all her worldwide income, saying she did not want her financial arrangements to be a “distraction” for her husband in his role as chancellor. A spokesperson for Mr Sunak said they “did not recognise” the claims on use of tax havens, while a spokesperson for Ms Murty declined to comment. They previously claimed that she was a non-dom as a result of being an Indian citizen, though experts pointed out that use of the tax status was her choice.On Friday, Mr Sunak admitted he had also held a US green card while living in Downing Street. Green card holders must pay tax in America and declare their intention to make the US their permanent home. A spokesperson for the chancellor said he had used his green card for travel purposes until October 2021 on his first US trip in a government capacity, at which point he returned it after discussion with authorities. They added: “Rishi Sunak followed all guidance and continued to file US tax returns, but specifically as a non-resident, in full compliance with the law. All laws and rules have been followed and full taxes have been paid where required in the duration he held his green card.”Last year she collected dividends of £11.5m from her estimated £700m stake in Infosys, the IT firm set up by her father, potentially saving around £4.5m in UK taxes through her non-dom status. She has previously stated that she “has always and will continue to pay UK taxes on all her UK income”.It comes as Mr Sunak’s popularity with voters has sunk to an all-time low, according to polls, as increases in inflation and national insurance contributions (NICs), as well as energy bills, spark a cost-of-living crisis. Mr Sunak’s spring statement last month was criticised for not doing enough to help the worst off. More

Rishi Sunak has admitted holding a US green card while he was UK chancellor because he had “lived and worked” in America.Mr Sunak was granted permanent residency in the US – but returned the green card when making his first trip to the country as chancellor in October 2021, according to his spokeswoman.Labour had urged the chancellor to “come clean” on both his US residency arrangements and his family’s tax affairs after The Independent revealed that his wife Akshata Murty has non-dom tax status.On Friday Mr Sunak released a statement admitting he had held a green card which allowed permanant residency in the US until around October 2021, having become chancellor back in February 2020.“Rishi Sunak had a green card when he lived and worked in the US,” said his spokeswoman – who suggested the chancellor had paid US taxes during the 19-month period.The chancellor’s spokeswoman said Mr Sunak had not been “presumed” to be a US resident “just by dint of holding a green card”.She also said Mr Sunak had followed “all guidance and continued to file US tax returns, but specifically as a non-resident, in full compliance with the law”.The spokeswoman said: “Upon his first trip to the US in a government capacity as chancellor, he discussed the appropriate course of action with the US authorities. At that point it was considered best to return his green card, which he did immediately.”She added: “All laws and rules have been followed and full taxes have been paid where required in the duration he held his green card.”However, Labour said the chancellor’s admission that he held a US green card for the first 19 months of his time in the post only “begs further questions”.Pat McFadden, shadow Treasury secretary, said: “Why did he keep a green gard for so long while being a UK MP? Was there any tax advantage in doing so? And why did he give this up after holding it for so long?”The Liberal Democrats accused Mr Sunak of breaking the ministerial code – pointing to sections which require ministers to be “as open as possible” and ensure “no conflict arises, or appears to arise” between public duties and private interests.“It turns out he has failed to keep to the ministerial code,” said Lib Dem leader Sir Ed Davey. “Never mind a green card, it’s time to give Rishi Sunak the red card.”It comes as Boris Johnson denied that he and his No 10 team had been briefing against Mr Sunak – insisting that he had not known anything about the non-dom tax status used by chancellor’s wife.Mr Sunak has blamed Labour for the fact that details of his wife’s tax arrangements first emerged in The Independent this week – but some of the chancellor’s allies have said they suspect No 10 has been trying to undermine the chancellor.The prime minister told a Downing Street press conference: “If there are such briefings, they are not coming from us in No 10 – heaven knows where they are coming from.”Backing his under-pressure chancellor, Mr Johnson said: “I think that Rishi is doing an absolutely outstanding job,” adding: “I don’t think people’s families should be dragged into things.”Mr Johnson also suggested the chancellor had done nothing wrong when it came to his use of a US green card. “As I understand it the chancellor has done absolutely everything he was required to do,” said the PMEarlier, in an interview with The Sun, Mr Sunak said there had been attempts to “smear my wife to get at me”. Asked if he thought Labour was behind a smear campaign, Mr Sunak replied: “Yeah.”But a Labour source responded: “The chancellor would do better to look a little closer to home. It’s clear that No 10 are the ones briefing against Rishi Sunak.”Sir Keir Starmer said Mr Sunak and his family will probably “be alright” in the cost-of-living crisis following revelations about the chancellor’s wife’s tax status.“What the chancellor needs to do is to just come clean,” said the Labour leader. “If the chancellor’s family … are using schemes to reduce their own household tax, then the public are entitled to know about that.”Ms Murty – who has reportedly received £11.6m in dividends from an Indian IT giant firm founded by her father in the past year – has confirmed she paid £30,000 to hold non-dom status.The arrangement may have saved Ms Murty up to £20m, according to one estimate – but Mr Sunak claimed the non-dom status was not about paying less tax in India. “The rates don’t make a difference … She loves her country like I love mine,” he told The Sun. More