Rishi Sunak faces probe by ethics watchdog over Budget ‘benefit’ to wife’s shares in childcare agency

PM accused of ducking ‘proper scrutiny’ as he faces probe relating to wife’s shares in firm boosted by Budget

Rishi Sunak is under investigation by parliament’s sleaze watchdog over allegations of a possible failure to declare the shares held by his wife in a childcare agency boosted by the recent Budget.

The prime minister is facing a series of questions about his ties to the firm as No 10 confirmed the inquiry opened by the standards watchdog relates to the shares Akshata Murty holds in the Koru Kids agency.

The prime minister did not mention his wife’s interest when grilled about the childcare reforms at a parliamentary committee last month – despite being asked by MPs if he had anything to declare.

Parliamentary commissioner for standards Daniel Greenberg will now examine whether Mr Sunak breached the MPs’ code of conduct – specifically the rules demanding MPs are “open and frank” when declaring their interests.

The standards probe is a major embarrassment for Mr Sunak, who vowed to bring “integrity” back to government when he entered No 10. It follows a fine for not wearing a seatbelt, and the Partygate fine for attending Boris Johnson’s rule-breaking birthday bash.

Labour accused Mr Sunak of dodging “proper scrutiny” and challenged the PM to produce an updated list of ministers’ interests before the local elections in England in two weeks time.

Mr Sunak was asked about possible conflicts of interest relating to Jeremy Hunt’s Budget at the liaison committee in March. Asked whether he had anything to declare by Labour MP Catherine McKinnell, he said: “No, all my disclosures are declared in the normal way.”

But Downing Street revealed on Monday that Mr Sunak had later written to MPs in a 4 April letter, following attention on his wife’s ties to Koru Kids, that he had declared the interest to the Cabinet Office.

While it does not appear on the MPs’ register of interest or the latest register of ministerial interests, which dates back to May 2022, No 10 said an updated register of ministerial interests would be published soon.

Mr Sunak’s spokesperson said: “We are happy to assist the commissioner to clarify how this has been transparently declared as a ministerial interest.”

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

But the PM’s official spokesperson refused to say when exactly the PM declared his wife’s shareholding to the department.

And No 10 would not say when the updated register of ministers’ interests would be published – saying only that Mr Sunak’s ethics adviser Sir Laurie Magnus would set it out “as soon as possible” and try to return to the “rhythm” of publishing every six months.

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.

Rishi Sunak giving speech on maths on Monday (PA)

The probe is not the first time Ms Murty’s finances have put the political spotlight on her husband.

The 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.

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.”

The Liberal Democrats’ 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 sleaze and scandal”.