Parliament’s standards watchdog has opened an investigation into the prime minister over a possible failure to declare an interest when first asked.
The probe by the standards commissioner, Daniel Greenberg, was launched last Thursday and cited paragraph 6 of the MPs’ code of conduct, which governs how MPs should behave.
The code states that MPs “must always be open and frank in declaring any relevant interest in any proceeding of the House or its committees, and in any communications with ministers, members, public officials or public office holders”.
A spokesperson for Number 10 said: “We are happy to assist the commissioner to clarify how this has been transparently declared as a ministerial interest.”
Mr Sunak faced accusations of a possible conflict of interest after he failed to mention Ms Murty’s links to Koru Kids, a childcare agency, when he was questioned by MPs over why the announcement in the budget that childminders joining the profession will receive incentive payments favoured private firms.
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The i newspaper revealed that Companies House listed her as a shareholder in the organisation as recently as 6 March.
Image: Rishi Sunak and his wife Akshata Murty
In a letter to parliament’s liaison committee, which quizzed the PM last month, Mr Sunak said he had declared his interests in “the normal way”.
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However, in his subsequent letter to the committee, he certified that this was in the ministers’ register, which had not been published at the time he gave evidence to MPs.
While the MPs’ register of interests requires members to declare any payments, donations or hospitality that might be reasonably considered to influence their work in parliament, the MPs’ code of conduct does not require them to record the interests of their spouses or partners.
However, the ministerial register of interests is governed by the ministerial code – which does require the declaration of “interests of the minister’s spouse or partner and close family which might be thought to give rise to a conflict”.
According to the Institute for Government, this distinction makes the ministerial register of interests stricter than that of the MPs’ register of interests.
Any potential punishment is far down the line, but this probe is clearly serious
The overall aim was to boost the number of childminders able to take up work, which came as part of a broader package about expanding childcare for parents of younger children as well.
The allegation is essentially that when Rishi Sunak was being asked about this, he hadn’t flagged up in that instant that his wife was a shareholder in an agency that would potentially benefit from this policy announcement.
Yes, it was out there in the media, but the rules and code of conduct of parliament is that you have to take formal steps to outline these potential interests so that any potential conflicts of interest between your political day job and personal interests are set out and transparent.
This investigation will go on to see whether the prime minister has declared his interests properly.
The defence from the prime minister is that actually because there’s a register of ministerial interests, where ministers declare potential financial interests or conflicts; because that hasn’t been updated for a year or so now, the new register of ministerial interests will have it detailed there.
The standards adviser investigates and comes back with a decision on whether the code of conduct has been broken.
If it has, that’s where the focus shifts onto what type of punishment should be imposed.
That’s quite far down the line, but it is clearly serious.
But critics, including the Labour chairman of the Standards Committee Chris Bryant, have called for the two registers to be combined because the ministerial register is published far less frequently and so is less visible to the public.
In his letter to the committee, Mr Sunak wrote: “I note that there has been some media coverage relating to the minority stake my wife has in relation to the company Koru Kids.
“I was being asked questions by the committee in my capacity as prime minister.
“I would like to clarify for the parliamentary record that this interest has rightly been declared to the Cabinet Office.”
The prime minister said the most recent list of ministerial interests would be published “shortly” by his independent ethics adviser, Sir Laurie Magnus.
“This regime ensures that steps are taken to avoid or mitigate any potential conflict of interest, and that the interests of ministers’ spouses or partners are not something that would influence their actions either as ministers or as members of parliament,” he added.
Mr Sunak has previously said that “transparency is really important” for parliament to operate well.
In reaction to Sky News’ Westminster Accounts projectlaunched in January, the prime minister said there was a reason that “rules and regulations” are in place.
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3:57
Sunak: ‘Transparency is important’
“I think transparency is really important for the healthy functioning of democracy, it’s absolutely right that there’s disclosures around donations and outside interests,” he said.
Mr Sunak wrote to the liaison committee to follow up on points that were raised at its session with the prime minister last month.
Labour MP Catherine McKinnell pointed out that six private childcare agencies were set to benefit from Jeremy Hunt’s budget, in which the chancellor 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.
Ms McKinnell quizzed Mr Sunak on the logic behind making the bonus twice as much for childminders who sign up through private agencies.
His response was that the policy was “designed in consultation with the sector”.
Pressed again 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.”
Image: Rishi Sunak giving evidence to the liaison committee in March
Asked if he had any interest to declare, Mr Sunak replied: “No, all my disclosures are declared in the normal way.”
The Liberal Democrats previously said that Ms Murty’s shareholding raised “serious questions” for Mr Sunak and called on Sir Laurie to investigate.
In response to the launch of the investigation, Liberal Democrat chief whip Wendy Chamberlain said: “Another day and another accusation of a Conservative prime minister bending the rules.
“After months of Conservative sleaze and scandal, the public just want a government which is focused on the country, rather than saving their own skin.”
Labour’s Deputy Leader Angela Rayner 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.
“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.
“While this prime minister fails to deliver the integrity he promised and preserves the rotten standards regime he inherited as the Tories resist tighter rules, Labour has a plan to clean up politics with an Independent ethics and integrity commission to restore standards in public life.”
The prime minister is just the latest MP to be investigated by the commissioner, who is looking into the behaviour of six MPs in total.
Last week investigations were opened into three MPs, including former health secretary Matt Hancock, Tory MP Henry Smith and independent MP Scott Benton.
So much for an end to chaos and sticking plaster politics.
Yesterday, Sir Keir Starmer abandoned his flagship welfare reforms at the eleventh hour – hectic scenes in the House of Commons that left onlookers aghast.
Facing possible defeat on his welfare bill, the PM folded in a last-minute climbdown to save his skin.
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0:23
Welfare bill passes second reading
The decision was so rushed that some government insiders didn’t even know it was coming – as the deputy PM, deployed as a negotiator, scrambled to save the bill or how much it would cost.
“Too early to answer, it’s moved at a really fast pace,” said one.
The changes were enough to whittle back the rebellion to 49 MPs as the prime minister prevailed, but this was a pyrrhic victory.
Sir Keir lost the argument with his own backbenchers over his flagship welfare reforms, as they roundly rejected his proposed cuts to disability benefits for existing claimants or future ones, without a proper review of the entire personal independence payment (PIP) system first.
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4:31
Welfare bill blows ‘black hole’ in chancellor’s accounts
That in turn has blown a hole in the public finances, as billions of planned welfare savings are shelved.
Chancellor Rachel Reeves now faces the prospect of having to find £5bn.
As for the politics, the prime minister has – to use a war analogy – spilled an awful lot of blood for little reward.
He has faced down his MPs and he has lost.
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4:38
‘Lessons to learn’, says Kendall
They will be emboldened from this and – as some of those close to him admit – will find it even harder to govern.
After the vote, in central lobby, MPs were already saying that the government should regard this as a reset moment for relations between No 10 and the party.
The prime minister always said during the election that he would put country first and party second – and yet, less than a year into office, he finds himself pinned back by his party and blocked from making what he sees are necessary reforms.
I suspect it will only get worse. When I asked two of the rebel MPs how they expected the government to cover off the losses in welfare savings, Rachael Maskell, a leading rebel, suggested the government introduce welfare taxes.
Meanwhile, Work and Pensions Select Committee chair Debbie Abrahams told me “fiscal rules are not natural laws” – suggesting the chancellor could perhaps borrow more to fund public spending.
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0:45
Should the govt slash the welfare budget?
These of course are both things that Ms Reeves has ruled out.
But the lesson MPs will take from this climbdown is that – if they push hard in enough and in big enough numbers – the government will give ground.
The fallout for now is that any serious cuts to welfare – something the PM says is absolutely necessary – are stalled for the time being, with the Stephen Timms review into PIP not reporting back until November 2026.
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1:10
Tearful MP urges govt to reconsider
Had the government done this differently and reviewed the system before trying to impose the cuts – a process only done ahead of the Spring Statement in order to help the chancellor fix her fiscal black hole – they may have had more success.
Those close to the PM say he wants to deliver on the mandate the country gave him in last year’s election, and point out that Sir Keir Starmer is often underestimated – first as party leader and now as prime minister.
But on this occasion, he underestimated his own MPs.
His job was already difficult enough – and after this it will be even harder still.
If he can’t govern his party, he can’t deliver change he promised.
Sir Keir Starmer’s controversial welfare bill has passed its first hurdle in the Commons despite a sizeable rebellion from his MPs.
The prime minister’s watered-down Universal Credit and Personal Independent Payment Bill, aimed at saving £5.5bn, was backed by a majority of 75 on Tuesday evening.
A total of 49 Labour MPs voted against the bill – the largest rebellion since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.
After multiple concessions made due to threats of a Labour rebellion, many MPs questioned what they were voting for as the bill had been severely stripped down.
They ended up voting for only one part of the plan: a cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.
The Institute for Fiscal Studies (IFS) said the bill voted through “is not expected to deliver any savings over the next four years” because the savings from reducing the Universal Credit health element for new claimants will be roughly offset by the cost of increasing the UC standard allowance.
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Just 90 minutes before voting started on Tuesday evening, disabilities minister Stephen Timms announced the last of a series of concessions made as dozens of Labour MPs spoke of their fears for disabled and sick people if the bill was made law.
In a major U-turn, he said changes in eligibility for the personal independence payment (PIP), the main disability payment to help pay for extra costs incurred, would not take place until a review he is carrying out into the benefit is published in autumn 2026.
An amendment brought by Labour MP Rachael Maskell, which aimed to prevent the bill progressing to the next stage, was defeated but 44 Labour MPs voted for it.
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4:31
Welfare bill blows ‘black hole’ in chancellor’s accounts
A Number 10 source told Sky News’ political editor Beth Rigby: “Change isn’t easy, we’ve always known that, we’re determined to deliver on the mandate the country gave us, to make Britain work for hardworking people.
“We accept the will of the house, and want to take colleagues with us, our destination – a social security system that supports the most vulnerable, and enables people to thrive – remains.”
But the Conservative shadow chancellor Mel Stride called the vote “farcical” and said the government “ended up in this terrible situation” because they “rushed it”.
He warned the markets “will have noticed that when it comes to taking tougher decisions about controlling and spending, this government has been found wanting”.
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1:02
‘Absolutely lessons to learn’ after welfare vote
Work and Pensions Secretary Liz Kendall said: “I wish we’d got to this point in a different way. And there are absolutely lessons to learn.
“But I think it’s really important we pass this bill at the second reading, it put some really important reforms to the welfare system – tackling work disincentives, making sure that people with severe conditions would no longer be assessed and alongside our investment in employment support this will help people get back to work, because that’s the brighter future for them.”
She made further concessions on Monday in the hope the rebels’ fears would be allayed, but many were concerned the PIP eligibility was going to be changed at the same time the review was published, meaning its findings would not be taken into account.
Her changes were:
• Current PIP claimants, and any up to November 2026, would have the same eligibility criteria as they do now, instead of the stricter measure proposed
• A consultation into PIP to be “co-produced” with disabled people and published in autumn 2026
• For existing and future Universal Credit (UC) claimants, the combined value of the standard UC allowance and the health top-up will rise “at least in line with inflation” every year for the rest of this parliament
• The UC health top-up, for people with limited ability to work due to a disability or long-term sickness, will get a £300m boost next year – doubling the current amount – then rising to £800m the year after and £1bn in 2028/29.
Labour’s welfare reforms bill has passed, with 335 MPs voting in favour and 260 against.
It came after the government watered down the bill earlier this evening, making a dramatic last-minute concession to the demands of would-be rebel MPs who were concerned about the damage the policy would do to disabled people.
The government has a working majority of 166, so it would have taken 84 rebels to defeat the bill.
In total, 49 Labour MPs still voted against the bill despite the concessions. No MPs from other parties voted alongside the government, although three MPs elected for Labour who have since had the whip removed did so.
Which Labour MPs rebelled?
Last week, 127 Labour MPs signed what they called a “reasoned amendment”, a letter stating their objection to the bill as it was.
The government responded with some concessions to try and win back the rebels, which was enough to convince some of them. But they were still ultimately forced to make more changes today.
In total, 68 MPs who signed the initial “reasoned amendment” eventually voted in favour of the bill.
Nine in 10 MPs elected for the first time at the 2024 general election voted with the government.
That compares with fewer than three quarters of MPs who were voted in before that.
A total of 42 Labour MPs also voted in favour of an amendment that would have stopped the bill from even going to a vote at all. That was voted down by 328 votes to 149.
How does the rebellion compare historically?
If the wording of the bill had remained unchanged and 127 MPs or more had voted against it on Tuesday, it would have been up there as one of the biggest rebellions in British parliamentary history.
As it happened, it was still higher than the largest recorded during Tony Blair’s first year as PM, when 47 of his Labour colleagues (including Diane Abbott, John McDonnell and Jeremy Corbyn, who also voted against the bill on Tuesday) voted no to his plan to cut benefits for single-parent families.
The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.