Why is Rishi Sunak being investigated by standards watchdog?

PM is being probed over possible failure to declare shares his wife holds in childcare agency boosted by Budget

Rishi Sunak is under investigation after facing allegations of a possible failure to declare the shares his wife holds in a childcare agency that was boosted by the recent Budget.

The inquiry opened by parliament’s standards watchdog relates to the shares Akshata Murty holds in Koru Kids, a No 10 source confirmed.

So why is Mr Sunak being probed on the link to the childcare agency? The Independent took a closer look at the growing row, and the transparency rules for ministers.

Why is the Sunak link to Koru Kids under scrutiny?

Mr Sunak faced demands to “come clean” about his family shares in March after being questioned by MPs over why the childcare policy favoured private firms, which six agencies listed on the government website.

Appearing before the MPs’ liaison committee, he did not mention his wife Ms Murthy’s shares in Koru Kids – which is one of six childminder agencies listed on the government’s website – in which she has been listed as a shareholder on Companies House.

A fortnight earlier, chancellor Jeremy Hunt announced a pilot of incentive payments of £600 for childminders joining the profession. Koru Kids welcomed the new incentives in the Budget as “great”.

Questioning why the sum doubles to £1,200 if workers sign up through an agency, Labour MP Catherine McKinnell asked if Mr Sunak had any interests to declare. “No, all my disclosures are declared in the normal way,” Mr Sunak said.

Who is investigating Sunak?

The new Parliamentary Commissioner for Standards Daniel Greenberg has opened an investigation into Mr Sunak under the MPs’ code of conduct – specifically the rules demanding MPs are “open and frank” when declaring their interests.

Rishi Sunak with his wife, Akshata Murty (PA Wire)

There is no mention of Mr Suank’s wife shares in the Koru Kids firm in the register of MPs’ interests which they are obliged to update every fortnight.

On the more irregular list of ministers’ interests – last published almost a year ago in May 2022 – Mr Sunak’s wife is only listed as owning an investment company, Catamaran Ventures UK Ltd. It does not go into detail of any of its shareholdings.

A revised version of the list of ministers’ interests is supposed to be published every six months. Suggesting there had been no failure to be open and frank, Downing Street said the PM will clarify how it was declared as a ministerial interest.

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

So did Sunak declare the interest or not?

It has emerged that Mr Sunak wrote to MPs on the liaison committee on 4 April to say his wife’s shareholding in the childcare agency had been “rightly declared” to the Cabinet Office.

But on Monday, No 10 would not say exactly when Mr Sunak declared the link to the Cabinet Office.

Rishi Sunak giving a speech on education at London Screen Academy on Monday (PA)

In his letter, the PM also told MPs: “The latest list of ministerial interests will be published shortly by the Independent Adviser, Sir Laurie Magnus.”

At the time the possible conflict of interest around the Budget emerged in March, Mr Sunak’s press secretary pointed to the forthcoming updated statement of ministers’ interests, due out in May.

But on Monday, No 10 would not say if the interest related to Mr Sunak’s wife’s shareholding in Koru Kids would be on the updated list in May, despite having been flagged to the Cabinet Office.

It understood that government considers that a declaration to the register of MPs’ interests is not necessary when it comes Mr Sunak’s family links because any potential conflict would be examined under the ministerial declaration process.

Angela Rayner called for list of ministers’ interests before local elections (Getty)

What is the reaction the investigation?

Labour’s deputy leader Angela Rayner accused Mr Sunak of dodging “proper scrutiny” – and challenged No 10 to produce the new list of ministers’ interests before the local elections in two weeks.

She 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”.

Accusing Mr Sunak of “preserving the rotten standards regime”, Ms Rayner added: “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.”

Lib Dem chief whip Wendy Chamberlain – who wrote to the ethics adviser Sir Laurie to ask him to examine whether rules had been broken – said on Monday: “Another day and another accusation of a Conservative prime ministers bending the rules.”

She added: “This is on the same day that Rishi Sunak may have broken election rules for his government announcement today. 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.”