Rees-mogg investigated over £6m loan from his firm

JACOB REES-MOGG is under investigation by the Standards Commissioner over allegations that he failed to properly declare £6million in loans from one of his firms.

The leader of the House of Commons reportedly borrowed up to £2.94million a year in “director’s loans” from Saliston Ltd, his holding company, between 2018 and 2020.

Kathryn Stone, the Standards Commissioner, is looking into allegations made under category one of the rules around MPS’ financial interests. But the MP for North East Somerset insisting his involvement with Saliston had been “declared clearly” in the register of interests.

He received £2.9million from Saliston Ltd in 2018 and the bank took out a loan worth £2.87 million in the same year, according to The Mail on Sunday.

Mr Rees-mogg told the publication the loans had been taken out “primarily” to buy and finance his home.

Saliston Ltd holds shares in Somerset Capital Management Ltd, a parent company of Somerset Capital Management (Cayman) Ltd in the Cayman Islands.

Mr Rees-mogg lists himself as a shareholder of Saliston Ltd and an unpaid partner in Somerset Ltd in the register of MPS’ interests. He stepped down from a separate part-time role with Somerset, an investment firm, on joining the Cabinet in 2019.

His director’s loans totalled £2.94million in 2018, £2.3million in 2018-19 and £701,513 in 2019-20, Companies House documents show.

He paid no interest on a director’s loan taken in 2018, and paid £46,915 and £2,030 on further loans in 2018-19 and 2019-2020 respectively.

There is no mention of director’s loans in the category one rules surrounding the register of interests, which requires the declaration of taxable expenses, allowances, benefits, salaries and fees.

Mr Rees-mogg said: “Saliston is 100 per cent owned by me and this is declared clearly in the Commons register and to the Cabinet Office.

“It has no activities that interact with government policy. The loans from 2018 were primarily taken out for the purchase and refurbishment of 7 Cowley Street as temporary cash flow measures. All loans have either been paid with interest in accordance with HMRC rules or paid as dividends and taxed accordingly. The register asks for earnings, not loans. Loans are not earnings and are not declarable in the register of interests.”