Rishi ‘blown chance of being PM’ over tax row
CHANCELLOR Rishi Sunak has blown his chances of succeeding Boris Johnson as Prime Minister, a former cabinet minister said yesterday, in the wake of revelations about his wife’s tax arrangements.
Mr Sunak’s wife, Akshata Murty, has now said she will pay UK taxes on her overseas income, stating that she does not want her “tax status to be a distraction” for her husband.
She is reported to own £700million in shares of IT company Infosys, founded by her father, and to have received £11.6million in dividend payments last year.
Labour says her non-domiciled status – meaning she would not have to pay UK tax at a rate of 39.35 per cent on dividends – “could have saved the Sunak household tens of millions of pounds”.
Opposition parties are now calling on Ms Murty, who remains an Indian citizen, to pay back UK taxes she has saved on her foreign income.
Her announcement came on the heels of Mr Sunak admitting he continued to hold a US green card – making him a lawful permanent resident of the United States – while Chancellor. He returned it in October last year.
The former cabinet minister cast doubt on whether Mr Sunak could become PM, saying: “I think he’s blown his chances altogether for the leadership of the party.”
The senior Conservative thought that the Chancellor had been the victim of a politically motivated attack but doubted that anyone in Downing St was responsible.
“I think somebody knifed him,” they said. “There’s no doubt about that. I don’t believe it is No10 at all. It’s not subtle enough for an internal job. I think it’s probably the Opposition. He thinks it’s the Opposition too.”
Mr Sunak won praise for his delivery of the job-saving furlough scheme during the pandemic but his popularity has been battered since then. Last week pollsters Yougov reported his favourability rating has dropped 24 points in the two weeks since he made his Spring Statement.
He has also faced severe internal criticism over his decision to press ahead with the increase in National Insurance contributions.
The former cabinet minister said this “helped put several nails in his political coffin”. Bookmakers Betfair said Foreign Secretary Liz Truss is now the favourite to succeed Mr Johnson with odds of 13/2, ahead of Mr Sunak on 7/1.
One Tory backbencher expressed surprise about the tax arrangements in the couple’s household, saying: “I think it’s quite amazing they decided to do this with his position in politics...
“Some people live on a different planet to the one we do.”
But support for the Chancellor came from Jacob Rees-mogg, the minister for Brexit opportunities.
Writing today in his regular “words of wisdom” slot in the Sunday Express, he said: “The critics of the Chancellor seem to forget that married women have had control of their own money for 140 years.
“How odd that the Left now screams for a patriarchy.”
‘Somebody knifed him’