Rishi Sunak’s wife gives up controversial stake in childcare firm

Akshata Murty gave her 1 per cent stake in the childcare agency to charity in order to let the company ‘focus on its work and grow’

Rishi Sunak’s wife has donated her controversial shareholding in Koru Kids to charity, amid fears her involvement had become an “unnecessary distraction” for the company.

Akshata Murty gave her stake in the childcare agency to ShareGift, a charity which accepts donations in the form of shares, last month.

The company said Ms Murty made the decision after her investment became an “unfair” distraction, adding that “she wishes for the company to be able to focus on its work and growth”. She owned around 1 per cent of the company, it is understood.

It caused a storm for Mr Sunak when he was found to have breached parliament’s rules by failing to properly declare Ms Murty’s shares in the agency, which was boosted by last March’s budget.

The chancellor, Jeremy Hunt, announced incentive payments of £600 for childminders joining the profession, and £1,200 if they join through an agency, like Koru Kids, which Akshata Murty has shares in.

Prime Minister Rishi Sunak and his wife Akshata Murty (Stefan Rousseau/PA) (PA Wire)

Quizzed on the rationale for the disparity, Mr Sunak cited a “reflection of the fact that they are through intermediaries so there are additional costs”.

Koru Kids was one of six childminder agencies listed on the government’s website at the time, and welcomed the new incentives as “great”.

It said a bonus of “£1,200 – yes double” would be paid “if you come through an agency like Koru Kids who offer community, training and ongoing support”.

Parliament’s commissioner for standards Daniel Greenberg opened a probe into the shareholding after criticism from Mr Sunak’s political opponents.

He concluded Mr Sunak had “inadvertently” breached the code of conduct by failing to declare Ms Murty’s financial interest in Koru Kids and the PM apologised for the mistake.

Mr Sunak’s wife’s wealth has often been a source of controversy for the PM since The Independent revealed last April she was avoiding tax through non-dom status.

She is the daughter of Indian IT billionaire NR Narayana Murty, who founded the tech giant Infosys.

Last week Labour claimed questions remain about a company owned by Mr Sunak’s wife which is now being wound up.

Pat McFadden, Labour’s national campaign co-ordinator, wrote to the government amid reports that her investment vehicle Catamaran Ventures UK is being liquidated.

Another of Ms Murty’s investments made headlines in May last year, when it was revealed by the Sunday Times that Catamaran held shares in Study Hall, an education start-up which had received almost £350,000 of UK grant money

Mr McFadden asked what the impact of Catamaran’s winding up would be on Study Hall and “any other companies in which Catamaran retains a stake”, as well as whether the company would be “fulfilling all its liabilities to the British taxpayer” by arranging to pay any outstanding taxes.

Prime Minister Rishi Sunak and his wife Akshata Murty disembark their plane as they arrive at Tokyo Airport ahead of the G7 Summit on May 18, 2023 (Getty Images)

On Tuesday, the founder and chief executive of Koru Kids, Rachel Carrell, said: “When Akshata Murty made the decision to invest in Koru Kids, she was one of the first, and we are delighted that she believed in Koru Kids enough to invest in our mission to give parents greater access to high-quality, flexible childcare.

“The childcare sector in the UK is one of the most expensive in the world - and we at Koru Kids will continue to campaign for greater investment and to improve access to wrap-around care for families, but this message was lost in the media attention surrounding this investment.

“As we move into 2024, we need to ensure that school-age children are not left behind in any new plans that materialise from the government’s levelling up plans for childcare, without any distractions for our business.”