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UK politics live: Starmer accuses Sunak of taxation ‘hypocrisy’ UK politics live: Starmer accuses Sunak of taxation ‘hypocrisy’
(about 1 hour later)
Latest updates: Labour leader says ‘it really is one rule for them, and another for everyone else’Latest updates: Labour leader says ‘it really is one rule for them, and another for everyone else’
And here is a fuller account of what Keir Starmer has been saying about the Sunak family’s tax arrangements on a campaign visit to Sunderland. Like Wes Streeting this morning (see 11.03am), Starmer argued that unfairness was the real problem, not potential breaches of the ministerial code.And here is a fuller account of what Keir Starmer has been saying about the Sunak family’s tax arrangements on a campaign visit to Sunderland. Like Wes Streeting this morning (see 11.03am), Starmer argued that unfairness was the real problem, not potential breaches of the ministerial code.
Starmer accused Rishi Sunak of taxation “hypocrisy” on the grounds that he was putting up taxes for ordinary Britons while his family has been reducing its own tax liabilities. Starmer said:Starmer accused Rishi Sunak of taxation “hypocrisy” on the grounds that he was putting up taxes for ordinary Britons while his family has been reducing its own tax liabilities. Starmer said:
It is Rishi Sunak’s wife, Akshata Murty, who has non-dom status, and Sunak’s initial response to this revelation was to insist that her financial affairs were not a matter for him. But the couple implicitly conceded the weakness of this argument at the end of last week, when Murty said she would start paying UK tax on her worldwide income (even though her non-dom status allows her not to), and Starmer is arguing that Sunak must share responsibility for his wife’s decisions.It is Rishi Sunak’s wife, Akshata Murty, who has non-dom status, and Sunak’s initial response to this revelation was to insist that her financial affairs were not a matter for him. But the couple implicitly conceded the weakness of this argument at the end of last week, when Murty said she would start paying UK tax on her worldwide income (even though her non-dom status allows her not to), and Starmer is arguing that Sunak must share responsibility for his wife’s decisions.
Starmer said the Sunak family tax arrangements were unfair. He said:Starmer said the Sunak family tax arrangements were unfair. He said:
He challenged Boris Johnson to confirm that no other cabinet ministers have been using non-dom arrangements to reduce their tax. He said:He challenged Boris Johnson to confirm that no other cabinet ministers have been using non-dom arrangements to reduce their tax. He said:
Asked what schemes to reduce tax were unacceptable, Starmer replied:Asked what schemes to reduce tax were unacceptable, Starmer replied:
Starmer’s answer implies that he wants to keep the focus just on non-dom status rather than open up a wider debate about what constitutes tax avoidance.Starmer’s answer implies that he wants to keep the focus just on non-dom status rather than open up a wider debate about what constitutes tax avoidance.
Starmer said that he would expect all his cabinet ministers to pay their taxes in full. He said:Starmer said that he would expect all his cabinet ministers to pay their taxes in full. He said:
Even though Rishi Sunak and his wife, Akshata Murty, effectively conceded last week, when Murty announced she would pay more tax, that they could no longer maintain that their financial affairs were entirely separate (because her tax breaks must have benefited the whole family - see 2.19pm), the message does not seem to have got through to Jacob Rees-Mogg, the Brexit minister. He posted this on Twitter this morning.
That triggered this response from Labour’s Jess Phillips.
A £19,500 artwork commissioned to represent the 2019 general election has gone on display in parliament, PA Media reports. PA says:
The president of the National Education Union has said that Ofsted “is and always has been a failed project”. Speaking at the NEU’s annual conference in Bournemouth earlier today, Daniel Kebede said that Ofsted was a “project that sends your workload rocketing and drives so much of the rot in education”. He went on:
Subsequently the union voted to establish a new commission investigating the reliability of Ofsted’s judgements, and to create a new inspection system for schools based on “collaborative support”.
Following the conference vote, Mary Bousted, the union’s joint general secretary, said in a statement:
When Rishi Sunak announced that the government was cutting energy bills by £200, but asking people to repay the money in £40 installments over five years, the Treasury called this a “rebate”. But it’s a loan, and the attempt by ministers to pretend it isn’t has been met with derision.
As the i’s Paul Waugh points out, the government has now quietly rebranded it.
Today is the day when the annual rise in the value of benefits takes effect. Most of them are going up by 3.1%, in line with inflation in September, even though inflation reached twice that level in February, and is forecast to rise even more.
On Radio 4’s the World at One, the Conservative MP Nigel Mills said that, if inflation remained high, he thought the government would have to provide more help for claimants.
This, from Labour’s Jess Phillips, gives an insight into what MPs are hearing from their constituents about the cost of living crisis.
Under Ed Miliband and Jeremy Corbyn Labour went into general elections committed to abolishing non-dom status. But for the moment the party has abandoned that pledge. When Steve Reed, the shadow justice secretary, was asked about it in interviews this morning, he just said Labour was reviewing its stance on tax, and he seemed to take some pleasure in telling the Today programme that just because something was in Corbyn’s manifesto, that did not mean it was policy now.Under Ed Miliband and Jeremy Corbyn Labour went into general elections committed to abolishing non-dom status. But for the moment the party has abandoned that pledge. When Steve Reed, the shadow justice secretary, was asked about it in interviews this morning, he just said Labour was reviewing its stance on tax, and he seemed to take some pleasure in telling the Today programme that just because something was in Corbyn’s manifesto, that did not mean it was policy now.
Momentum, the Labour group set up to defend Corbyn and his policies, has said that wanting to abolish non-dom status should be a “no-brainer” for the party.Momentum, the Labour group set up to defend Corbyn and his policies, has said that wanting to abolish non-dom status should be a “no-brainer” for the party.
In an interesting article for ConservativeHome, David Gauke, a Treasury minister at the time, recalls the panic created in Tory circles when Ed Miliband announced plans to scrap non-dom status during the 2015 election campaign. The Conservatives only relaxed when a recording emerged of Ed Balls, the then shadow chancellor, telling a meeting a few months earlier that abolishing non-dom status completely might be a bad idea.In an interesting article for ConservativeHome, David Gauke, a Treasury minister at the time, recalls the panic created in Tory circles when Ed Miliband announced plans to scrap non-dom status during the 2015 election campaign. The Conservatives only relaxed when a recording emerged of Ed Balls, the then shadow chancellor, telling a meeting a few months earlier that abolishing non-dom status completely might be a bad idea.
Gauke claims that the Tory policy, which has involved tightening non-dom rules, but not abolishing the perk altogether, makes sense. He says:Gauke claims that the Tory policy, which has involved tightening non-dom rules, but not abolishing the perk altogether, makes sense. He says:
But, in an interview with LBC this morning, Balls himself said that now it was time for a rethink on non-dom policy. He said that the distribution of income across society had changed considerably from what it was when Labour came to power, and he said Labour was reviewing policy in this area anyway. He predicted that Rishi Sunak would do something too. He said:But, in an interview with LBC this morning, Balls himself said that now it was time for a rethink on non-dom policy. He said that the distribution of income across society had changed considerably from what it was when Labour came to power, and he said Labour was reviewing policy in this area anyway. He predicted that Rishi Sunak would do something too. He said:
The Foreign Office has announced sanctions against Bosnian-Serb politicians Milorad Dodik and Željka Cvijanović for “deliberately undermining the hard-won peace in Bosnia and Herzegovina”. In a statement, it said:The Foreign Office has announced sanctions against Bosnian-Serb politicians Milorad Dodik and Željka Cvijanović for “deliberately undermining the hard-won peace in Bosnia and Herzegovina”. In a statement, it said:
Dodik is the Bosnian-Serb member of Bosnia and Herzegovina’s three-member presidency, and Cvijanović is president of Republika Srpska.Dodik is the Bosnian-Serb member of Bosnia and Herzegovina’s three-member presidency, and Cvijanović is president of Republika Srpska.
Downing Street has rejected a call by NHS leaders to reintroduce greater mask-wearing and a push to encourage mixing outdoors, PA Media reports. PA says:Downing Street has rejected a call by NHS leaders to reintroduce greater mask-wearing and a push to encourage mixing outdoors, PA Media reports. PA says:
And here is a fuller account of what Keir Starmer has been saying about the Sunak family’s tax arrangements on a campaign visit to Sunderland. Like Wes Streeting this morning (see 11.03am), Starmer argued that unfairness was the real problem, not potential breaches of the ministerial code.And here is a fuller account of what Keir Starmer has been saying about the Sunak family’s tax arrangements on a campaign visit to Sunderland. Like Wes Streeting this morning (see 11.03am), Starmer argued that unfairness was the real problem, not potential breaches of the ministerial code.
Starmer accused Rishi Sunak of taxation “hypocrisy” on the grounds that he was putting up taxes for ordinary Britons while his family has been reducing its own tax liabilities. Starmer said:Starmer accused Rishi Sunak of taxation “hypocrisy” on the grounds that he was putting up taxes for ordinary Britons while his family has been reducing its own tax liabilities. Starmer said:
It is Rishi Sunak’s wife, Akshata Murty, who has non-dom status, and Sunak’s initial response to this revelation was to insist that her financial affairs were not a matter for him. But the couple implicitly conceded the weakness of this argument at the end of last week, when Murty said she would start paying UK tax on her worldwide income (even though her non-dom status allows her not to), and Starmer is arguing that Sunak must share responsibility for his wife’s decisions.It is Rishi Sunak’s wife, Akshata Murty, who has non-dom status, and Sunak’s initial response to this revelation was to insist that her financial affairs were not a matter for him. But the couple implicitly conceded the weakness of this argument at the end of last week, when Murty said she would start paying UK tax on her worldwide income (even though her non-dom status allows her not to), and Starmer is arguing that Sunak must share responsibility for his wife’s decisions.
Starmer said the Sunak family tax arrangements were unfair. He said:Starmer said the Sunak family tax arrangements were unfair. He said:
He challenged Boris Johnson to confirm that no other cabinet ministers have been using non-dom arrangements to reduce their tax. He said:He challenged Boris Johnson to confirm that no other cabinet ministers have been using non-dom arrangements to reduce their tax. He said:
Asked what schemes to reduce tax were unacceptable, Starmer replied:Asked what schemes to reduce tax were unacceptable, Starmer replied:
Starmer’s answer implies that he wants to keep the focus just on non-dom status rather than open up a wider debate about what constitutes tax avoidance.Starmer’s answer implies that he wants to keep the focus just on non-dom status rather than open up a wider debate about what constitutes tax avoidance.
Starmer said that he would expect all his cabinet ministers to pay their taxes in full. He said:Starmer said that he would expect all his cabinet ministers to pay their taxes in full. He said:
As my colleague Jessica Elgot reports, Keir Starmer has said all cabinet ministers should declare whether they have ever used schemes like non-dom status to reduce their tax.As my colleague Jessica Elgot reports, Keir Starmer has said all cabinet ministers should declare whether they have ever used schemes like non-dom status to reduce their tax.
I will post more from the Starmer comments shortly.I will post more from the Starmer comments shortly.
And here is a summary of the main lines from the Downing Street lobby briefing.And here is a summary of the main lines from the Downing Street lobby briefing.
The No 10 spokesperson was unable to confirm that the inquiry into Rishi Sunak’s declarations of ministerial interests will cover his decision to retain his US green card as a minister and chancellor. (See 12.29pm.) Asked about the point of the inquiry, when the Cabinet Office said at the weekend that Lord Geidt, the independent adviser on ministerial standards, was “completely satisfied with the chancellor’s propriety of arrangements”, the spokesperson implied that that statement covered Sunak’s declarations when he became a minister in 2018. The spokesperson also said Boris Johnson has full confidence in Sunak.The No 10 spokesperson was unable to confirm that the inquiry into Rishi Sunak’s declarations of ministerial interests will cover his decision to retain his US green card as a minister and chancellor. (See 12.29pm.) Asked about the point of the inquiry, when the Cabinet Office said at the weekend that Lord Geidt, the independent adviser on ministerial standards, was “completely satisfied with the chancellor’s propriety of arrangements”, the spokesperson implied that that statement covered Sunak’s declarations when he became a minister in 2018. The spokesperson also said Boris Johnson has full confidence in Sunak.
The spokesperson would not say whether or not Johnson knew that Rishi Sunak had a green card when be became chancellor. But she said it was not a requirement to disclose that to the PM. Asked if there might be other ministers with a green card, she said she would not speculate. Asked if he knew if any of his ministers had non-dom status, or had been non-doms in the past, she said ministers have to make relevant declarations.The spokesperson would not say whether or not Johnson knew that Rishi Sunak had a green card when be became chancellor. But she said it was not a requirement to disclose that to the PM. Asked if there might be other ministers with a green card, she said she would not speculate. Asked if he knew if any of his ministers had non-dom status, or had been non-doms in the past, she said ministers have to make relevant declarations.
The spokesperson said Johnson will be at Chequers this week having “a bit of a break” for a couple of days. He plans to “get some rest and spend some time with family”, she said. But he will continue to receive updates, particularly on Ukraine.The spokesperson said Johnson will be at Chequers this week having “a bit of a break” for a couple of days. He plans to “get some rest and spend some time with family”, she said. But he will continue to receive updates, particularly on Ukraine.
The spokesperson said that Johnson was in Kyiv for around five hours on Saturday. She said:The spokesperson said that Johnson was in Kyiv for around five hours on Saturday. She said:
As PA Media reports, the spokesperson said that, upon their return, they held a further full bilateral meeting over dinner. The pair had a starter of goats cheese salad and chicken soup, followed by a main of roast beef and cherry dumplings for dessert. Johnson was accompanied by one member of his private office and his security detail, the spokesperson said.As PA Media reports, the spokesperson said that, upon their return, they held a further full bilateral meeting over dinner. The pair had a starter of goats cheese salad and chicken soup, followed by a main of roast beef and cherry dumplings for dessert. Johnson was accompanied by one member of his private office and his security detail, the spokesperson said.
Neither Sunak nor his family are aware of any trusts they have naming Sunak as a beneficiary, No 10 indicated. But, according to the Independent, Sunak has been named as a beneficiary. No 10 has not issued an on the record statement denying this.Neither Sunak nor his family are aware of any trusts they have naming Sunak as a beneficiary, No 10 indicated. But, according to the Independent, Sunak has been named as a beneficiary. No 10 has not issued an on the record statement denying this.
This is what Angela Rayner, the deputy Labour leader, said in her letter to the PM yesterday calling for an inquiry into Rishi Sunak about why it should cover his decision to hold on to his US green card for so long. She said:This is what Angela Rayner, the deputy Labour leader, said in her letter to the PM yesterday calling for an inquiry into Rishi Sunak about why it should cover his decision to hold on to his US green card for so long. She said:
The full text of the Rayner letter raises several other issues that should be covered by the inquiry and runs to five pages.The full text of the Rayner letter raises several other issues that should be covered by the inquiry and runs to five pages.
At the Downing Street lobby briefing the No 10 spokesperson confirmed that Lord Geidt, the independent adviser on ministerial standards, would be conducting an inquiry into Rishi Sunak’s declarations of interest. Sunak requested one last night – but Geidt is only allowed to launch an inquiry with the permission of the PM, which has now been given.
But the spokesperson was unable to confirm that the inquiry would cover Sunak’s decision to retain his US green card after he became a minister, and even while he was chancellor. It is reported that he only gave it up last October.
The spokesperson said the prime minister “has agreed to the request from the chancellor for Lord Geidt to undertake this work”. Asked if the inquiry would consider the green card issue, which was not explicitly mentioned as a topic it should examine in the letter Sunak released last night, the spokesperson said she thought the inquiry would just cover what Sunak suggested it should cover (his declarations of interest) but that Geidt would say more in due course.
I will post more from the briefing shortly.
Last week, after Koci Selamaj was sentenced to life in jail for the murder of the primary school teacher Sabina Nessa, Priti Patel, the home secretary, posted a message on Twitter saying she hoped this would bring some small comfort to Nessa’s family.
In an interview with the Today programme this morning Jebina Yasmin Islam, Nessa’s sister, criticised Patel for her tweets. Claiming that there had been a “lack of support” for the family from government, she said:
Islam claimed the family had not received any correspondence from Patel about Nessa’s murder. But Sadiq Khan, the London mayor, had sent a letter, she said.
As Sami Quadri reports for the Evening Standard, Islam also claimed that if the family had been white, they would have been treated more favourably, and Nessa’s murder would have received more publicity.
On his LBC show Wes Streeting, the shadow health secretary, has said it was right for Boris Johnson to visit Kyiv on Saturday to show support for Ukraine. It was an important visit, he said. And he said that some of the people criticising Johnson for the trip on social media (on the grounds that it was a stunt, and that Johnson was grandstanding) were the same people who were praising Ursula von der Leyen, the European Commission president, when she visited the city the day before.
Wes Streeting, the shadow health secretary, is hosting the morning programme on LBC today, standing in for James O’Brien, who is on holiday. Even though his shadow cabinet colleague Steve Reed used his morning interviews this morning to highlight Labour claims that Rishi Sunak may have broken the ministerial code (see 9.34am), Streeting used his opening spiel to argue that this aspect of Sunak’s conduct wasn’t the real problem. He said:
Streeting said what was objectionable was that Sunak and his family were able to organise their tax affairs so as to minimise their liabilities in a way other people cannot. He explained:
To be fair, it was Rishi Sunak’s wife who was using non-dom status to minimise her tax bills, not Sunak himself. And Sajid Javid has admitted being a non-dom in the past, but he gave that up before he became an MP.
Rishi Sunak visited the Treasury’s base in Darlington this morning in a bid to show he is getting on with the job of being chancellor despite the storm around his family’s financial arrangements, PA Media reports.
The Ministry of Defence has said it fears Russia may use white phosphorus (WP) munitions in the bombardment of the besieged Ukrainian port Mariupol. It has issued the warning in its latest regular intelligence update on the war.
In his interviews this morning George Eustice was also asked about the Homes for Ukraine scheme for refugees, and why by the end of last week only about 1,200 people granted visas under this scheme had arrived in the UK. When it was put to him on LBC that this was a shambles, he would not accept that. He said:
UK growth slowed more than expected in February amid a slump in car manufacturing, despite a sharp recovery in overseas holiday bookings after the easing of Covid restrictions, my colleague Richard Partington reports.
George Eustice, the environment secretary, was on “defend the government” duty on the airwaves this morning and, although he was meant to be talking about government plans to stop councils charging people for dumping DIY waste in tips (in the hope this will reduce fly-tipping), he spent much of his time talking about Rishi Sunak’s family finances. Here are the main points he made.
Eustice claimed that Sunak had been “very candid” about his affairs. Asked about claims that Sunak had not declared relevant interests, Eustice said:
Eustice sidestepped a question about whether he understood the anger that the revelation about the chancellor’s wife being a non-dom had caused. Asked by Sky’s Kay Burley if he understood why people were unhappy about this, Eustice suggested Sunak should be judged on his record, and he stressed that Sunak has paid all his taxes.
Eustice failed to explain why Sunak had kept his US green card for so long. He said the green card was “a hangover” from the time when Sunak was working in the US. But Eustice could not explain why Sunak still had it when he became chancellor.
Eustice said he did not think Sunak was too wealthy to be chancellor or prime minister. When this suggestion was put to him, he replied:
Good morning. Last night there were calls for an inquiry into Rishi Sunak’s financial interests - from the chancellor himself. This amounts to voluntarily handing yourself in to the regulatory authorities, and it is a tactic often used by MPs facing misconduct allegations when they a) want to regain control of the narrative, and b) are reasonably confident that they will be cleared.
On the latter point, Sunak does not seem to have any doubts. He has asked for an inquiry by Lord Geidt, the prime minister’s independent adviser on ministerial standards, into the declarations of interest he has made as a minister and he says he is “confident that such a review of my declarations will find all relevant information was appropriately declared”.
Sunak made his move in response to a letter from Angela Rayner, Labour’s deputy leader, calling for an inquiry into Sunak’s alleged failure to declare relevant financial interests, as well as other matters, including his possession of a US green card until quite recently. But Sunak’s statement has failed to silence Labour, and this morning Steve Reed, the shadow justice secretary, renewed his claim that Sunak may have broken the ministerial code. Asked if he thought this was possible, Reed told the Today programme:
George Eustice, the environment secretary, was defending Sunak in his morning interview round. I will post highlights from his interviews shortly.
Parliament is not sitting, and the diary for today is relatively empty. But we have a Downing Street lobby briefing at 11.30am, and Keir Starmer is campaigning in the north-east. And in Bournemouth the National Education Union’s conference is taking place.
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