Rishi Sunak is under investigation over 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 MPs are “open and frank” when declaring their interests.
The investigation relates to the shares Akshata Murthy holds in agency Koru Kids.
Downing Street said 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 Parliamentary Commissioner for Standards Daniel Greenberg opened the investigation under the MPs’ code of conduct on Thursday.
“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,” the relevant section reads.
A No 10 spokeswoman responded: “We are happy to assist the commissioner to clarify how this has been transparently declared as a ministerial interest.”
In a bid to increase numbers, Chancellor Jeremy Hunt announced a pilot of bonus payments for new childminders.
He would be “piloting incentive payments” of £600 for childminders who sign up to the profession, but this rose to £1,200 for those who joined through an agency.
Ms Murty was listed as a shareholder in one of those agencies, Koru Kids.
The PM did not mention Ms Murthy’s links the company when he was questioned by MPs about the policy at a parliamentary committee hearing.
When Labour MP Catherine McKinnell asked Mr Sunak whether he had any interest to declare, he replied: “No, all my disclosures are declared in the normal way.”
However, in a letter to the Liaison Committee earlier this month, he acknowledged the “minority stake” his wife holds in Koru Kids and said that it had “rightly been declared to the Cabinet Office”.
Liberal Democrat Chief Whip Wendy Chamberlain MP said: “Another day and another accusation of a Conservative Prime Minister bending the rules.“
“After months of Conservative sleaze and scandal, the public just want a government which is focused on the country, rather than saving their own skin”
It comes as the Lib Dems accused ministers of flouting purdah rules by making a policy announcement in the run-up to local elections next month.
The party has and demanded an investigation.
Purdah rules restrict what communications activity can take place in the weeks before polling day and state Government resources cannot be used for party political campaigning during the period.
On Monday Mr Sunak outlined proposals that would see all pupils studying Maths in some form up to the age of 18.
The Prime Minister’s official spokesman said the Government had ensured its announcements were within the rules.
