Rishi Sunak under investigation by parliament's standards watchdog over interest declaration

ITV News' Shehab Khan delivers the latest from Westminster

Rishi Sunak is under investigation by the parliament's standards watchdog over a possible failure to declare the shares held by his wife in a childcare agency that will benefit from the Budget.

The latest update to the parliamentary website shows the investigation was opened last Thursday by the Parliamentary Commissioner for Standards, Daniel Greenberg.

It relates to paragraph six of the MPs code of conduct, which outlines that MPs must "always be open and frank in declaring any relevant interest".

A Downing Street source confirmed the investigation relates to the shares Akshata Murty holds in the childcare agency Koru Kids - one of six private agencies that was boosted by the Budget.

A No 10 spokeswoman responded: “We are happy to assist the commissioner to clarify how this has been transparently declared as a ministerial interest.”

Paragraph six of the code of conduct reads: "Members 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".

Rishi Sunak is questioned over his interests during a liaison committee hearing in March, and insists 'all my disclosures are declared in the normal way'

Last month Chancellor Jeremy Hunt unveiled significant changes to childcare in England, including a pilot of incentive payments for childminders to join the profession.

They can earn £600 if they opt to work in the sector, or £1,200 if they sign up through an agency. Mr Sunak's wife, Akshata Murty, is listed as a shareholder of Koru Kids, which is one of six agencies listed on the government's website.

When questioned in front of the liaison committee on March 28, Labour MP Catherine McKinnell asked Mr Sunak why the chancellor had announced a double bonus for childminders who sign up through a private agency. She asked if Mr Sunak had any interests to declare.

"No, all my disclosures are declared in the normal way," insisted Mr Sunak.

While in front of the liaison committee, the prime minister failed to state that his wife holds shares in one of the private agencies listed on the government website. When the Budget was unveiled, Koru Kids welcomed the new incentives as "great".

At the time the possible conflict of interest emerged, Mr Sunak’s press secretary said the interest would be included in the updated statement of ministers’ interests, due out in May.

But it seems Mr Greenberg's investigation appears to focus on whether the prime minister should have declared the interest to MPs.

The list of ministerial interests has not been updated for nearly a year. It was last compiled by Lord Geidt, who resigned as Boris Johnson's ethics adviser after a tumultuous period under the then-prime minister.

Mr Sunak did not appoint a successor as ministerial interests adviser until December, when Sir Laurie Magnus took on the role.

Labour has raised questions in the Commons over the shares held by the prime minister's wife, in light of the investigation announced on Monday.

Shadow education minister Helen Hayes said: "In the Spring Budget the Chancellor announced new incentives for people registering as childminders and a double incentive to register with childminding agencies.

"Will the minister set out why she considered it necessary to incentivise childminders to sign-up with agencies and what conversations she and the Secretary of State (Gillian Keegan) had with the Prime Minister and the agency in which his wife is a shareholder prior to the Budget?"

Education minister Claire Coutinho replied: "It's a very simple reason, it's because we subsidise Ofsted for the registration costs - so it costs them about £35, whereas a childminder agency to register a childminder costs them, it can be, £500-plus.

"So the discrepancy is just simply to balance that out and to balance out the fact that they have different costs.

"I know the Number 10 team are collaborating with the commissioner to establish facts and show that everything has been transparent and declared."

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."

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