Prime Minister Rishi Sunak is under investigation following allegations of a possible failure to declare the shares his wife holds in a childcare agency that was boosted by the Budget.
Parliament's standards watchdog opened the inquiry into the Prime Minister under rules demanding that MPs are "open and frank" when declaring their interests. The investigation relates to the shares Akshata Murthy holds in Koru Kids, a Downing Street source revealed to the PA News Agency.
Downing Street said that the Prime Minister will clarify how it was declared as a ministerial interest, rather than to the Commons. An update to the parliamentary website showed Daniel Greenberg, Parliamentary Commissioner for Standards, opened the investigation under the MPs' code of conduct on Thursday.
Read more: Newcastle MP grills Rishi Sunak over 'in crisis' childcare system as concerns raised over new policy
The relevant section reads: "Members must always be open and frank in declaring any relevant interest in any proceeding of the House or its committees, and in any communications with ministers, members, public officials or public office holders."
A No. 10 spokeswoman responded: "We are happy to assist the commissioner to clarify how this has been transparently declared as a ministerial interest.
Mr Sunak faced demands to "come clean" about his family shares last month after being questioned by MPs over why the childcare policy favoured private firms. When appearing before the Liaison Committee, he did not mention his wife's shares in the firm, though she is listed as a shareholder on Companies House.
A fortnight earlier, Chancellor Jeremy Hunt announced a pilot of incentive payments of £600 for childminders joining the profession. Catherine McKinnell, Labour MP for Newcastle North, questioned why the sum doubles to £1,200 if workers sign up through an agency and asked the Prime Minister if he had any interests to declare.
Mr Sunak replied: "No, all my disclosures are declared in the normal way."
Koru Kids is one of six childminder agencies listed on the Government's website, and welcomed the new incentives in the Budget. When the possible conflict of interest emerged, Mr Sunak's press secretary said the interest would be included in the updated statement of ministers' interests due out in May.
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