Rishi Sunak news - live: Chancellor defends wife over non-dom tax status as Labour demands answers

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Chancellor Rishi Sunak has defended his wife, billionaire Akshata Murty, over her tax-reducing non-domiciled status after Labour demanded answers whether he himself benefitted from her status.

Mr Sunak said his wife had done nothing wrong in choosing a financial arrangement that means she is not legally obliged to pay tax in Britain on foreign income.

He has blamed Labour for the “awful” smears against his family, but the Telegraph reported that unnamed allies of the Chancellor claimed the Prime Minister’s office were behind the leaks – an allegation No 10 and No 11 strongly denied.

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Born to tech-giant Infosys founder Narayana Murty and author Sudha Murty, Akshata Murty has a 0.9 per cent stake in the company worth hundreds of millions of pounds, according to its latest annual report.

Together with her chancellor husband Rishi Sunak, Ms Murty owns the London-based Catamaran Ventures UK, The Guardian reports. Mr Sunak transferred his shares to his wife shortly before entering parliament as an MP in 2015.

Ms Murty, now 42, is also listed as a shareholder in at least six other companies, including Jamie Oliver’s Pizzeria, Wendy’s restaurants in India and New & Lingwood, a men’s apparel store which measures Etonians for tailcoats and silk dressing gowns.

Alice Murphy has more.

The wife of Rishi Sunak, the British chancellor, has claimed non-domicile status to save on her tax bill.

It is not known exactly how much Akshata Murty saved through this, but sources claimed it could have avoided her paying millions of pounds in tax on foreign earnings over several years.

“Non-dom” status is lawful but controversial.

Zoe Tidman has more details here:

The Chancellor’s wife’s tax status continues to lead the nation’s papers on Friday.

The Independent leads on what has been called the “breath-taking hypocrisy” of Mr Sunak on his family’s tax status, while The Guardian says his wife may have avoided £20 million on her bill.

The Chancellor’s allies are claiming the leaks regarding the tax controversy are coming from Number 10, according to The Daily Telegraph, while The Times says Mr Sunak fears a “hit job”.

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Labour is demanding that Rishi Sunak answer 12 key questions about his wife’s non-dom status, including whether he has benefited personally.

As the controversy grows, the chancellor has been urged to set out how much tax has been saved and how he has “ensured he is not involved in Treasury discussions” about the rules.

“As chancellor it is crucial you both follow the rules and lead by example,” James Murray, a shadow Treasury minister has written.

“Any impression that there is one set of rules favouring a few, and another for everyone else, threatens the integrity of tax policy in our country.”

Our deputy political editor Rob Merrick has more:

Rishi Sunak’s wife claims that she has to have non-dom status due to her Indian citizenship. As India apparently does not allow dual nationality, then it follows that she cannot be a UK citizen, with all that implies for her and her children.

I suppose she could always renounce her Indian citizenship, but then she might have to pay more UK tax. Some people do have tough decisions to make in these uncertain times.

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Hello, Sam Hancock here, I’m taking over our rolling UK politics coverage now.

Stay tuned for all the latest updates as chancellor Rushi Sunak continues to be criticised over his wife’s tax status.

Boris Johnson will host Olaf Scholz at Downing Street on Friday as the pair look to discuss how European countries can reduce their reliance on Russian gas following the war on Ukraine.

The UK prime minister is expected to offer assistance to Berlin, which is still heavily reliant on Russian gas, to reduce its dependence on Moscow’s energy exports in a bid to starve Vladimir Putin’s war machine of funds.

It comes after foreign secretary Liz Truss, following a meeting of Nato counterparts in Brussels on Thursday, said she hoped to see “more countries” commit to banning Russian energy imports.

The UK has pledged to end all imports of Russian coal and oil by the end of 2022, with gas to follow as soon as possible. The US has done the same.

Germany has faced criticism from Ukraine and other European nations, including Poland, with claims it has been too slow to phase out Russian energy. Robert Habeck, the German economy and energy minister, has announced plans to stop importing oil and coal from Russia this year, and gas by mid-2024.

Meanwhile, UK and Nato allies have agreed to supply “new and heavier” weapons to Ukraine in an acknowledgement that the conflict has entered a “new and different phase”.