The sleaze watchdog of parliament has opened an investigation against Rishi Sunak over allegations that he failed to disclose a conflict of interest.
After it was discovered that a daycare organisation owned in part by the prime minister’s wife, Akshata Murty, would profit from budgetary policy changes, the prime minister came under fire.
While discussing the childcare reforms at a parliamentary committee last month, the prime minister did not bring up his wife’s involvement, despite being prompted to do so.
In an announcement on Monday, the parliamentary commissioner for standards said the prime minister was being probed because of a possible failure to declare an interest.
A Downing Street source confirmed that the investigation related to the childcare agency.
The probe is not the first time Ms Murty’s finances and business interests have put the political spotlight on her husband.
The heiress and venture capitalist, who is worth hundreds of millions of pounds, was criticised after The Independent revealed last year that she was avoiding tax by assuming non-dom status.
She later renounced the status after the revelations caused an outcry.
Mr Sunak was specifically asked about possible conflicts of interest relating to the budget when he appeared at a hearing of the Liaison Committee last month.
Asked whether he had anything to declare at the time by Labour MP Catherine McKinnell, he said: “No, all my disclosures are declared in the normal way.”
A No 10 spokeswoman said: “We are happy to assist the commissioner to clarify how this has been transparently declared as a ministerial interest.”
Koru Kids is one of six private childcare agencies being consulted on a pilot scheme as part of the government’s childcare overhaul announced in the Budget.
The government is to test incentive payments of £600 for childminders joining the profession, and £1,200 if they join through an agency like the one part-owned by the prime minister’s wife.