UK’s Sunak to Be Investigated by Ministerial Interests Adviser Following Self-Referral

Rishi Sunak speaks at a statement on the economic update session, at the House of Commons in London on March 23, 2022. UK Parliament/Jessica Taylor/Handout via Reuters

Prime Minister Boris Johnson has asked the independent adviser on ministers’ interests to investigate his finance minister, 10 Downing Street confirmed on Monday.

It comes after the Chancellor of the Exchequer Rishi Sunak—who in the past week was embroiled in accusations around his financial interests—wrote to Johnson on Sunday, asking the prime minister to order a review into his declarations of interest.

On Monday, a spokeswoman for Johnson confirmed that the prime minister had agreed to Sunak’s request, and asked Independent Adviser on Ministers’ Interests Christopher Geidt to undertake the inquiry.

“The prime minister has full confidence in the chancellor,” the spokeswoman added.

Then-Private Secretary to the Sovereign Christopher Geidt on May 6, 2015. Dominic Lipinski/PA Media

Sunak has endured a torrid week in which a substantial increase in taxes came into effect as the tax arrangements of his family also came under scrutiny.

As daughter of one of the founders of Indian IT giant Infosys, Sunak’s wife Akshata Murty owns 0.93 percent of the company, entitling her to a dividend payment worth £11.6 million ($15.12 million) last year. She has confirmed that she held non-domiciled tax status, meaning she did not have to pay UK tax on foreign earnings as long as they are not brought into the UK.

While the status was legal, critics said the arrangement was incompatible with Sunak’s decision to raise taxes on workers and employers from April 6 at a time when high inflation is causing a cost-of-living squeeze for many households. On Friday, Murty said she would pay British tax on her worldwide income so her tax status wouldn’t be a “distraction” for her husband.

Sunak was also criticised for keeping his U.S. green card until October last year when he sought guidance ahead of his first U.S. trip in a government capacity. It was more than six years after he became an MP and nearly two years after he was appointed as chancellor.

The Independent also said that trusts in the British Virgin Islands and the Cayman Islands were created to help manage Murty’s tax and business affairs, and some of them noted Sunak as a beneficiary in 2020.

But a spokesperson for Sunak said no one in the families of Murty or Sunak was aware of the alleged trusts.

Chancellor of the Exchequer Rishi Sunak alongside his wife Akshata Murty attend a reception to celebrate the British Asian Trust at the British Museum in London on Feb. 9, 2022. Ian West/PA Media

In the letter to Johnson on Sunday, Sunak said he is “confident” that a review of his declarations “will find all relevant information was appropriately declared.”

“I have throughout my ministerial career followed the advice of officials regarding matters of propriety and disclosure and will continue to do so,” he wrote.

Sunak said his “overriding concern is that the public retain confidence in the answers they are given” and he believes an independent review is the best way to achieve it.

“To that end I would recommend that Lord Geidt makes all his conclusions public,” he wrote.

On Monday morning, Labour deputy leader Angela Rayner said she had written to Johnson requesting an investigation into the “troubling revelations regarding the tax status and business connections of the Chancellor and his household” hours before Sunak’s self-referral.

After Murty’s non-dom tax status emerged, Health Secretary Sajid Javid also confirmed that he held the same tax-reducing status for six years prior to his political career.

Labour leader Sir Keir Starmer said he wants “an assurance” from the prime minister “as to whether other members of the Cabinet have been using these schemes to reduce their tax.”

Reuters contributed to this report.