Steerpike Steerpike

Is Labour behind Rishi’s tax woes?

TOLGA AKMEN/AFP via Getty Images

Who’s out to get Rishi? That’s the question allies of the Chancellor are asking after a week of revelations about the Richmond MP. They include the non-domiciled tax status of his wife, Akshata Murthy, Sunak’s decision to hold a US green card and pay tax in America for his first 18 months in No. 11 and his own alleged links to tax havens. There have also been leaks over briefing battles, including the Treasury’s opposition to insulating homes in the energy strategy and a proposal to double the energy rebate.

The timing of such stories – coinciding with Boris Johnson emerging from the darkest period of his premiership – has raised suspicions about Johnson loyalists seeking revenge for Sunak’s lukewarm support during partygate. ‘It’s all coming from No 10,’ one ally of Sunak is quoted as telling the Telegraph. ‘Ever since he sat down from the Spring Statement, it’s been one thing after the other. I don’t think it’s in anyone’s interest other than the Prime Minister’s.’ Another ally is quoted in the Times as saying ‘I’m absolutely certain that No 10 have got an operation against the Chancellor. Ukraine has only suspended the issues around Boris. They’re trying to hit the most credible contender.’

Someone within government certainly does appear to be leaking, given the confidentiality surrounding personal tax affairs. The Mail reports that there is ‘white-hot fury at the Treasury’ over the leak of Murthy’s tax status, which had been revealed to ‘only a few senior officials to comply with conflict of interest rules.’ Yet it is by no means clear that it is Johnson lieutenants who are responsible. The finger of blame has also been pointed at ‘Labour-supporting officials.’ Remember that it was just last spring that some ministers feared there was a ‘Redthroat mole’ at the heart of government, wreaking revenge for Dominic Cummings.

As usual with such leaks, the truth about who is actually responsible will likely never emerge. Mr S does note however that it was less than eight weeks ago that some prescient ‘Labour figures’ were telling the New Statesman that they thought the issue of ‘questionable tax practises’ would ‘eventually become a political headache’ for Sunak. This was because his wife’s wealth was ‘tied up in so many ventures.’ Excellent political judgement has been a rare thing in the Labour party in recent times, suggesting perhaps some level of involvement in Sunak’s recent woes.

Cockup or conspiracy? Nostradamus or Machiavelli? Steerpike will leave that one to his readers to work out.

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