Rishi Sunak’s wife is a shareholder in a childcare agency that will benefit from a major new policy announced in the spring budget.
The prime minister did not mention Akshata Murthy’s links to Koru Kids when he was questioned by MPs over why the financial announcement favoured private firms.
But as first reported by the i newspaper, Companies House lists her as a shareholder in the organisation as recently as 6 March.
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0:51
Childcare reform biggest ‘in my lifetime’
The Liberal Democrats said this raises “serious questions” for Mr Sunak and called for his ethics adviser, Sir Laurie Magnus, to investigate.
This month Chancellor Jeremy Hunt announced a pilot of incentive payments of £600 for childminders joining the profession, a sum that doubles to £1,200 if they sign up through an agency.
At parliament’s Liaison Committee on Tuesday, Labour MP Catherine McKinnell quizzed Mr Sunak on the logic behind making the bonus twice as much for childminders who sign up through private agencies.
He told Ms McKinnell the policy was “designed in consultation with the sector”.
Pressed on the rationale, he said: “I think it’s a reflection of the fact that they are through intermediaries so there are additional costs.
“And, ultimately, we want to make sure the policy is effective in bringing additional people into the system.”
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He told her he would “happily write back” to the committee on “exactly what conversations were had and the rationale”.
Asked if he had any interest to declare, Mr Sunak replied: “No, all my disclosures are declared in the normal way.”
Koru Kids is one of six childminder agencies in England listed on the government’s website.
It welcomed the budget on its website, saying the “new incentives open to childminders are 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”.
Lib Dem chief whip Wendy Chamberlain said: “There are serious questions for Rishi Sunak to answer over any potential conflict of interest, and any extra income his family could receive from his own government’s policy.
“Too often we have seen Conservative sleaze run amok. The public must be reassured that any breach of the ministerial code by the prime minister will be fully investigated.”
A representative for Ms Murthy, the fashion-designer daughter of a billionaire, has been contacted for comment.
Mr Sunak mentions Ms Murthy’s venture capital company, Catamaran Ventures, in his list of ministerial interests, but does not mention Koru Kids.
But they may not appear on the finished list if there is deemed not to be an issue.
A spokeswoman for the prime minister said: “As the PM said yesterday, all interests have been declared in the usual way.”
Mr Sunak’s press secretary later acknowledged that details of Ms Murthy’s holding in the agency were not in the public domain but indicated they would be included in the updated statement of ministers’ interests due out in May.
“The ministerial code sets out a process by which ministers declare their interests. They do that in writing, in this case to the cabinet secretary. That process was followed to the letter by the prime minister,” she said.
A “cheap ceasefire” between Ukraine and Russia – with Kyiv forced to surrender land – would create an “expensive peace” for the whole of Europe, Norway’s foreign minister has warned.
Espen Barth Eide explained this could mean security challenges for generations, with the continent’s whole future “on the line”.
It was why Ukraine, its European allies and the US should seek to agree a common position when trying to secure a settlement with Vladimir Putin, the top Norwegian diplomat told Sky News in an interview during a visit to London on Tuesday.
“I very much hope that we will have peace in Ukraine and nobody wants that more than the Ukrainians themselves,” Mr Eide said.
“But I am worried that we might push this to what in quotation marks is a ‘cheap ceasefire’, which will lead to a very expensive peace.”
Explaining what he meant, Mr Eide said a post-war era follows every conflict – big or small.
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3:29
Inside Ukraine’s underground military HQ
How that plays out typically depends upon the conditions under which the fighting stopped.
“If you are not careful, you will lock in certain things that it will be hard to overcome,” he said.
“So if we leave with deep uncertainties, or if we allow a kind of a new Yalta, a new Iron Curtain, to descend on Europe as we come to peace in Ukraine, that’s problematic for the whole of Europe. So our future is very much on the line here.”
He said this mattered most for Ukrainians – but the outcome of the war will also affect the future of his country, the UK and the rest of the continent.
“This has to be taken more seriously… It’s a conflict in Europe, it has global consequences, but it’s fundamentally a war in our continent and the way it’s solved matters to our coming generations,” the Norwegian foreign minister said.
Russia ‘will know very well how to exploit vagueness’
Asked what he meant by a cheap ceasefire, he said: “If Ukraine is forced to give up territory that it currently militarily holds, I think that would be very problematic.
“If restrictions are imposed on future sovereignty. If there’s vagueness on what was actually agreed that can be exploited. I think our Russian neighbours will know very well how to exploit that vagueness in order to keep a small flame burning to annoy us in the future.”
Progress being made on peace talks
Referring to the latest round of peace talks, initiated by Donald Trump, Mr Eide signalled that progress was being made from an initial 28-point peace plan proposed a couple of weeks ago by the United States that favoured Moscow over Kyiv.
That document included a requirement for the Ukrainian side to give up territory it still holds in eastern Ukraine to Russia and Mr Eide described it as “problematic in many aspects”.
But he said: “I think we’ve now had a good conversation between Ukraine, leading European countries and the US on how to adapt and develop that into something which might be a good platform for Ukraine and its allies to go to Russia with.
“We still don’t know the Russian response, but what I do know is the more we are in agreement as the West, the better Ukraine will stand.”
Lithuania has declared a state of emergency over smuggler balloons from Belarus that have disrupted aviation.
Vilnius airport has been closed because of the balloons, which Lithuania says have been sent by smugglers transporting cigarettes in recent weeks.
It also says they constitutes a “hybrid attack” by Belarus, which is a close ally of Russia.
Lithuania is a NATO member and ally to Ukraine during its fight against Russia’s full-scale invasion in 2022.
On Tuesday Lithuania’s interior minister Vladislav Kondratovic told a government meeting: “The state of emergency is announced not only due to civil aviation disruptions but also due to interests of national security.”
Mr Kondratovic added that the Lithuanian government had asked parliament to grant the military powers to act with police, border guards and security forces during the state of emergency.
Should parliament agree, the army will be given permission to limit access to territory, stop and search vehicles, perform checks on people, their documents and belongings, and to detain those resisting or suspected of crimes.
Image: European Commission President Ursula von der Leyen described the balloon incursions as “completely unacceptable”. Pic: AP
Lithuania’s defence minister Robert Kaunas said the military would be permitted to use force for these functions.
Belarus has denied responsibility and accused Lithuania of provocations.
This includes sending a drone to drop “extremist material”, which Lithuania denies.
With more than a thousand troops being killed or wounded every day, there’s no sign that Donald Trump’s push to end Russia’s war in Ukraine is reducing the battles on the ground.
Quite the opposite.
Ukraine‘s military chief says Vladimir Putin is instead using the US president‘s focus on peace negotiations as “cover” while Russian soldiers attempt to seize more land.
That means much greater pressure on the Ukrainian frontline, even as Russian and American, or American and Ukrainian, or Ukrainian and European, leaders shake hands and smile for cameras before retreating behind closed doors in Moscow, Alaska, and London.
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3:05
This was not an upbeat meeting of Ukraine and its allies
Putin’s not counting on peace
The lack of any indicators that the Kremlin is looking to slow its military machine down also makes the risk of war spreading beyond Ukraine’s borders increasingly likely.
It takes a huge amount of effort, time, and money to put a country on a war footing as Putin has done, partially mobilising his population, allocating huge portions of government spending to the military and realigning Russia’s vast industrial base to produce weapons and ammunition.
Image: Putin has been in India to shore up support from Narendra Modi. Pic: Reuters
But when the fighting stops, it requires almost as much focus and energy to switch a society back to a peace time rhythm.
Deliberately choosing not to dial defence down once the battles cease means a nation will continue to grow its armed forces and weapons stockpiles – a sure sign that it has no intention of being peaceful and is merely having a pause before going on the attack again.
The absence of any preparations by Moscow to slow the tempo of its military operations in Ukraine – where it has more than 710,000 troops deployed along a 780-mile frontline – is perhaps an indicator that Putin is anticipating more not less war.
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3:07
What is Putin trying to achieve in India?
How could the war end?
What happens next in Europe will depend on the content of any peace deal on Ukraine.
An all-out Russian defeat is all but impossible to conceive without a significant change of heart by the Trump White House and a massive increase in weapons and support.
The next best result for Ukraine would be a settlement that seeks to strike a fair balance between the warring sides and their conflicting objectives.
This could be done by pausing the fighting along the current line of contact before substantive peace talks then take place, with Ukraine’s sovereignty supported by solid security guarantees from Europe and the US.
But such a move would require Europe’s NATO allies, led by the UK, France and Germany, genuinely to switch their respective militaries and populations back to a wartime footing, with a credible readiness to go to war should Moscow attempt to test their support of Ukraine.
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6:47
Why Ukraine’s allies may welcome Trump walking away
Will Starmer level with the public?
That does not just mean increased spending on defence at a much faster rate – in the UK at least – than is currently planned. It is also about the mindset of a country and its willingness to take some pain.
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1:46
New UK military technology unveiled
Worst case scenario?
The other alternative when it comes to Ukraine is a scenario that sees a sidelined Europe unable to influence the outcome of the negotiations and Kyiv forced to agree to terms that favour Moscow.
This would include the surrender of land in the Donbas that is still under Ukrainian control.
Such a deal – even if tolerated by Ukraine, which is unimaginable without serious unrest – would likely only mean a temporary halt in hostilities until Putin or whoever succeeds him decides to try again to take the rest of Ukraine, or maybe even test NATO’s borders by moving against the Baltic States.
With Trump’s new national security strategy making clear the US would only intervene to defend Europe if such a move is in America’s interests, it is no longer certain that the guarantees contained in NATO’s founding Article 5 principle – that an attack on one member state is an attack on all – can be relied upon.
In the scenario, Washington does not come to Britain’s defences, which leaves the British side with very few options to respond short of a nuclear strike.
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