Tag: Rishi Sunak

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Rishi Sunak under fire over alleged presence in lockdown party

Sunak, when asked about the surprise birthday party, said he had been in the cabinet room ‘100, 200, God knows how many times’. Adding: ‘You are asking me about something that happened almost two years ago.’…writes Ashis Ray

Rishi Sunak, the Indian-origin chancellor of the exchequer in the British government, was allegedly photographed standing beside Prime Minister Boris Johnson at a gathering in the cabinet room of 10 Downing Street (the historic office-cum-residence of a United Kingdom premier) to celebrate Johnson’s birthday in June 2020. It is being determined in a police inquiry as to whether this get-together violated the prevailing Covid-19 rules.

Sunak is visualised as waiting in the wings to mount a challenge in a ruling Conservative party leadership contest, in the event 15 per cent of its MPs in the House of Commons express no confidence in Johnson. There’s speculation as to whether Sunak’s attendance will affect his prospective candidature.

The Prime MinisterBoris Johnson is joined by the Chancellor of the Exchequer Rishi Sunak as they make their way up the staircase of No10 Downing Street to give a press conference on the Coronavirus. Picture by Andrew Parsons / No 10 Downing Street

The photo reportedly shows the head of government holding a can of Estrella beer, with Sunak next to him. Earlier, reliable media reports indicated there was cake cutting and eating at the event, with Johnson’s wife Carrie attending as well.

Sunak, when asked about the surprise birthday party in an interview by BBC, said he had been in the cabinet room ‘100, 200, God knows how many times’. Adding: ‘You are asking me about something that happened almost two years ago.’

In short, he neither confirmed nor denied he was there. It remains to be seen whether a police investigation currently underway finds him or Johnson culpable in respect to what the UK prime minister’s office claimed to have been an impromptu bash. It has, however, acknowledged there was a surprise birthday celebration organised by Carrie Johnson, maintaining the prime minister stayed at it for only 10 minutes.

On Monday, a redacted report of an intra-government examination by a senior civil servant Sue Grey revealed that 12 of the 16 cases of perceived violations of Covid-19 laws then in force were now being probed by London Metropolitan Police, popularly known as Scotland Yard. The Yard are said to possess around 300 pictures from various sources in addition to records of emails and text messages as they attempt to get to the bottom of a matter that has paralysed the central government in Britain, with the prime minister see as a suspect.

Sources told The Mirror newspaper No 10 aides were present in the cabinet room for the birthday celebration, but there was no birthday cake.

Adam Wagner, a barrister, said to The Guardian daily: “The legal question for the prime minister is whether he participated in the gathering. The fact that he was photographed holding a beer strongly suggests he did and therefore committed a criminal offence of the regulations.”

The punishment for holding social events during the COVID-19 lockdown period is a financial penalty, the sum of which depends on the extent of contravention — in other words, the size of the gathering and the brazenness involved. However, an attempt to erase evidence by deleting messages and pictorial proof is a more serious crime, a sentence for which could even be prison.

Johnson’s woes were compounded during the week with the resignation of a long-serving and trusted head of policy at Downing Street, Munira Mirza, who is of Pakistani-descent. She quit because her boss made a false allegation against the former barrister and now leader of opposition Sir Keir Starmer in parliament about his performance as director of public prosecution and did not comply with her request to the prime minister to withdraw the charge or apologise for it.

Sunak was put a question on the affair at a press conference. He replied: “I wouldn’t have said it.” This has been quickly interpreted as the chancellor distancing himself from the prime minister as the latter battles to save his premiership.

ALSO READ: Revolt Against Boris Begins

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RIFT IN TORY RANKS

Chancellor of the Exchequer Rishi Sunak and Home Secretary Priti Patel — do not appear to be on the same page as far as support to Prime Minister Boris Johnson is concerned, reports Ashis Ray

The two senior cabinet ministers of Indian origin in the British government— Chancellor of the Exchequer Rishi Sunak and Home Secretary Priti Patel — do not appear to be on the same page as far as support to Prime Minister Boris Johnson is concerned. Sunak’s endorsement of his boss is seen by British media as “tepid”, as compared Patels wholesome loyalty to the incumbent of 10 Downing Street.

The Independent reported: “Cabinet divisions the Downing Street party scandal have widened as Priti Patel appeared to criticise Rishi Sunak for declining to back the Prime Minister fully.” She was seemingly referring to Sunak’s absence from “Prime Minister’s Questions” slot in the House of Commons at which Johnson tendered a grovelling apology and was pilloried by the Leader of Opposition Sir Keir Starmer.

Sunak was, in fact, on a visit to Devon, some 225 miles away from London, and only tweeted a message eight hours after the event. His carefully worded message said: “The PM was right to apologise and I support his request for patience while Sue Gray carries out her enquiry.”

Gray is a senior civil servant, who has been entrusted with the onerous and unenviable task of investigating into 17 odd parties reportedly held at Downing Street during Covid lockdowns. Her brief is to find out if these were social gatherings and, so, broke the law. Johnson’s prime ministership is said to hinge on her discovery, although, technically, whether he violated the ministerial code by having knowledge of or attending non-work get-togethers, may not be her remit. There is separately the more serious issue of Johnson misleading Parliament, which is reason for a resignation. Gray’s report is expected next week.

Asked on Sky News if she agreed with Sunak’s “lukewarm support” for Johnson’s apology in the Commons, Patel replied: “No! On the contrary, I have publicly supported the Prime Minister and actually you’re speaking to the Home Secretary who spends all my time day in day out supporting the Prime Minister, his agenda of delivering on the people’s priorities and the work that we do.”

Big trouble for PM

Johnson is in trouble on various fronts, from accepting a donation from a businessman to refurbish his official residence – a significant part of which he allegedly failed to declare, as is mandatory under ministerial and MPs’ codes in the United Kingdom – and about he and his office serially violating Covid-19 lockdown laws introduced by his government and ratified by Parliament since 2020.

Rather notoriously, there was a garden party at Downing Street on May 20, 2020 during the height of restrictions on the public, where 100 people were invited and asked to “bring you own bottle” or “BYOB”. The invitation went out from Johnson’s Principal Private Secretary and was attended by the Prime Minister and his wife Carrie. His explanation that he thought it was a work meeting and didn’t know it the assembly contravened the existing law has been rejected by an overwhelming section of Britons in opinion polls.

Furthermore, the night before the British monarch Queen Elizabeth’s late husband, the Duke of Edinburgh’s funeral last year – when Britain was in official mourning as well as in Covid lockdown – there was a party in the basement of Downing Street, with drinking and dancing to disco music conducted by a DJ. The alcohol for the binge was smuggled into the building in a suitcase.

Sunak and Patel’s political standings at present are quite different. The former who entered parliament five years after the latter did, has sped past her and is the bookmakers’ favourite to succeed Johnson in case he steps down. Sunak’s performance as Chancellor in saving livelihoods with generous grants and furloughs during the Covid crisis has endeared him to his party and the British public.

Patel, on the other hand, has from all accounts struggled at the Home Office. She was also indicted for violating the ministerial code with “bullying” behaviour towards civil servants. But Johnson did not dismiss her as has been the convention. The senior-most civil servant in her ministry resigned and had to be paid heavy compensation by the treasury to withdraw a suit he had filed at a tribunal.

A leadership contest in Johnson’s ruling Conservative party is triggered by 15 per cent of its MPs asking for it. This works out to 54 lawmakers. Senior Conservative MP David Davies shocked the Commons on Wednesday by telling Johnson to his face: “In the name of God, go!”

Govt accused of ‘blackmail’

Prime Minister Boris Johnson on Thursday dismissed new allegations that his aides had tried to “blackmail” and threaten Conservative rebels, in a potentially criminal twist to Downing Street’s “partygate” scandal.

Senior Tory William Wragg disclosed the alleged intimidation campaign as Downing Street battles to shore up Johnson against calls from within the party for his resignation.

“The intimidation of a member of parliament is a serious matter. Reports of which I am aware would seem to constitute blackmail,” said Wragg, one of seven Tory MPs who have publicly called for a party confidence vote.

Addressing MPs, Wragg said any affected members should report it to the police and to the Speaker’s office in the House of Commons.

Speaker Lindsay Hoyle, addressing the chamber in sombre tones, said any such campaign would amount to “contempt” of parliament, which is a criminal offence.

Scotland’s First Minister First Minister Nicola Sturgeon alleged the charge amounted to “corruption”, and accused Johnson of “tarnishing the office of prime minister”.

But Johnson told reporters: “I’ve seen no evidence, heard no evidence, to support any of those allegations.

“What I am focused on is what we’re doing to deal with the number one priority of the British people, which is coming through Covid,” he said on a visit to a medical clinic in southwest England.

Johnson refused to confirm his aides’ assertion that he would fight any no-confidence vote and not comment further on the dramatic defection of Conservative MP Christian Wakeford to the Labour party on Wednesday.

The alleged intimidation campaign includes threats to withdraw funding from rebels’ constituencies, and to leak damaging stories to the media.

Wakeford said he had been told his seat in northwest England could lose a school if he did not fall into line.

Prior to Wragg’s explosive intervention, Johnson allies had been talking up the prime minister’s chances of survival, after Wakeford’s cross-party switch focused Tory minds on the threat from a resurgent Labour opposition.

ALSO READ-BRICS: Another eventful year for India

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Rishi Sunak not out of running to be PM if Boris is ousted

The pro-Conservative Daily Mail reported: “Boris Johnson has slumped to his lowest ever popularity rating among Tory members, a poll has found.”…reports Ashis Ray

In 2012, two years into his premiership, David Cameron had said that his Conservative party will be the first in Britain to have a Prime Minister of Indian-origin.

“We were the first party to have a woman Prime Minister (Margaret Thatcher) – (there has been a second one since in Theresa May) – we were the first party to have a Jewish Prime Minister in (Benjamin) Disraeli, and when I look at the talent behind me, I think we are going to be the first party to have a British Indian Prime Minister,” Cameron had said.

In fact, historically persons of Indian origin in the United Kingdom felt more at home with the Labour party and virtually voted en mass for it. Beginning with giving Keith Vaz a ticket in 1987, the Labour party had steadily increased its number of MPs of Indian descent by 2010, at which point Cameron, an Indophile, decided to correct the imbalance by making two of the current cabinet ministers in the British government of Prime Minister Boris Johnson — Priti Patel and Alok Sharma — first-time MPs.

Five years later, he awarded a seat to Rishi Sunak, now Chancellor of the exchequer.

Speculation is mounting about the future of Johnson – he having condoned sleaze among his colleagues, been allegedly corrupt himself, and 10 Downing Street, his office-cum-residence, apparently serially breaching Covid lockdown rules (which were legislated in Parliament and were therefore law) by having not exactly work gatherings in the premises last winter.

UK Prime Minister Boris Johnson (Andrew Parsons / No 10 Downing Street)

These included at least one in which the Prime Minster himself participated on-screen from his private flat in the building, so seemingly with his knowledge and approval. Ordinary citizens have been prosecuted and punished for similar violations during the same period.

The pro-Conservative Daily Mail reported: “Boris Johnson has slumped to his lowest ever popularity rating among Tory members, a poll has found.”

It added: “The Prime Minister is the most unpopular member of the Cabinet, according to the Conservative Home survey, with a net approval score of minus 34 per cent.”

The British public is clearly livid. Another quite comprehensive opinion poll indicated that if a general election is held now, the Conservatives would lose 111 seats in the House of Commons, including Johnson’s. And the Labour party would emerge as the largest single party, within striking distance of an absolute majority.

In such a climate, discussion is rife as to who could succeed Johnson in the event he is ousted by his party.

The Daily Mail again provided an indication. It published that until recently, Sunak was leading the pack within the party. Foreign Secretary Liz Truss has, however, according to the Daily Mail quoting Conservative Home, “leapfrogged the Chancellor”. But it’s close. Truss is preferred by about 23 per cent and Sunak by around 20 per cent.

Redfield & Wilton Strategies found that 35 per cent of Conservative voters ‘strongly support’ removing Johnson and another 25 per cent ‘support’ this. A total of 20 per cent were neutral.

The same research also received a feedback that suggested “Rishi Sunak would be the preferred replacement in No 10”.

It detailed: “Some 29 per cent thought that he would be better and a further 14 per cent saw him as a ‘significant’ upgrade – superior figures to both Truss and Sajid Javid (the Health Secretary).”

Sunak did himself no disfavour by adopting a Keynesian, rather an un-Conservative approach to massive borrowing and spending on furloughs and grants to the tune of hundreds of billions of pounds to alleviate distress for businesses and people amid the Covid crisis.

Thus, Cameron’s forecast that the Conservatives will produce the first British Prime Minister of Indian extraction appears to be in the mix, even if this doesn’t happen in the short term.

It would be a considerable leap of faith for the rank and file of the right-wing Conservative party, which, until 15 years ago, was quite white dominated, to rally around a non-white as party leader and Prime Minister.

Tom Tugendhat, with a little over 5 per cent support in Conservative Home’s survey, is eyed as a dark horse. He is presently Chairman of the House of Commons’ select committee on foreign affairs, with a military background and a record of distinguished service in Afghanistan and Iraq.

But a backbench MP, with no experience in government, is normally not catapulted from the back benches to the top job.

ALSO READ-Sunak delivers Budget for stronger economy

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Sunak delivers Budget for stronger economy

A new temporary business rates relief for the hospitality industry, a freeze on fuel and alcohol duties and increasing the country’s National Living Wage to GBP 9.50 from April 2022, were among some of the key announcements, reports Asian Lite News

Chancellor of the Exchequer Rishi Sunak delivered his Autumn Budget to the House of Commons on Wednesday, with the promise of delivering stronger growth for the pandemic-hit British economy.

While warning of some ‘challenging months’ ahead with inflation expected to rise, the minister unveiled an extra GBP 150 billion investment as part of the Budget and Spending Review.

A new temporary business rates relief for the hospitality industry, a freeze on fuel and alcohol duties and increasing the country’s National Living Wage to GBP 9.50 from April 2022, were among some of the key announcements.

“Today’s Budget delivers a stronger economy for the British people: stronger growth, with the UK economy recovering faster than our major competitors. Stronger public finances, with our national debt finally under control. Stronger employment, with fewer people out of work and more people in work. Growth up, jobs up, and debt down: let there be no doubt our plan is working,” said Sunak.

Sunak, in charge of Britain’s economic response to the pandemic, said the Budget was designed to create jobs, improve skills, tackle health service backlogs, put more police on the streets, and build new homes, hospitals, and schools.

The Treasury said its latest figures show that the economy is on track to reach pre-pandemic levels by early next year, with unemployment peaking at less than half what was initially predicted.

Among some of the measures expected to prove popular include an end to a duty premium on sparkling wines and a cut in the cost of a pint of beer of 3 pence.

“Over the last decade, consumption of sparkling wines like prosecco has doubled. English sparkling wine alone has increased almost tenfold. It’s clear they are no longer the preserve of wealthy elites,” noted Sunak, himself a teetotaller.

“And they’re no stronger than still wines. So, I’m going to end the irrational duty premium of 28 per cent that they currently pay. Sparkling wines wherever they are produced will now pay the same duty as still wines of equivalent strength,” he said.

Sunak announced GBP 5.9 billion to tackle the National Health Service (NHS) backlog of non-emergency tests and procedures, modernise digital technology and ensure there are at least 100 community diagnostic centres to help people across England get health checks, scans and tests closer to their homes.

Support for education

To support pupils and teachers, he announced an additional GBP 4.7 billion invested in the core schools budget in England. To boost wages, skills funding will increase by a total over the Parliament of GBP 3.8 billion compared to 2019-20. And, for parents, he said GBP 302 million will fund new early years programmes including bespoke breastfeeding services and parent-infant mental support, and funding to rollout Family Hubs across England.

Sunak said, “The evidence is compelling that the first 1,001 days of a child’s life are the most important. We’re confirming GBP 150mn to support training and development for the entire early years workforce. To help up to 300,000 more families facing multiple needs, we’re investing an extra GBP 200mn in the Supporting Families programme. And we will provide over GBP 200mn a year to continue the holiday activity and food programme.”

Opposition slams Budget

The Opposition Labour Party, represented by Shadow Chancellor Rachel Reeves in place of party Leader Keir Starmer who is self-isolating after testing positive for Covid-19, responded to the Budget as asking British people “to pay so much for so little.”

With reference to the duty cut on sparkling wines and air passenger duty on domestic flights, Reeves shot back: “At least the bankers on short haul flights sipping champagne will be cheering today. Never has a Chancellor asked the British people to pay so much for so little. This country deserves better.”

The Opposition welcomed the increase in the minimum wage but said the government needed to go “further and faster” and should have moved to a rise of at least GBP 10 an hour.

ALSO READ-All eyes on Sunak ahead of Budget 2021

READ MORE-Sunak on spending spree ahead of Budget

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UK furlough scheme comes to an end

Chancellor Rishi Sunak said he was “immensely proud” of the scheme, but that it was the right time for it to close…reports Asian Lite News.

The UK’s furlough scheme is closing on Thursday, but some badly-hit sectors are saying support should continue, the BBC reported.

The scheme, which was introduced in March 2020, helped pay the wages of 11.6 million workers after Covid-19 forced large parts of the economy to close.

At the end of July it was still supporting the incomes of around 1.6m workers the latest HMRC figures show.

Chancellor Rishi Sunak said he was “immensely proud” of the scheme, but that it was the right time for it to close.

Meanwhile, the British businesses buoyed by the UK’s economic recovery have returned £1.3 billion in furlough cash, according to new statistics.

Figures released last week showed that firms who have overclaimed or decided they no longer need payments received through the Coronavirus Job Retention Scheme handed back £300 million in the last three months.

In total, they have repaid £1.3 billion to HMRC since July 2020 through adjustments to claims and the voluntary disclosure service, which will continue into 2022.

“This Government stepped in to help when people needed it most, supporting nearly 12 million jobs through furlough. This worked, nearly 2 million fewer people are now expected to be out of work in the UK than previously feared,” Sunak said.

“Now with our recovery underway it is heartening to see that £1.3 billion in furlough grants have been returned as the economy recovers.”

ALSO READ-Johnson ‘threatened to demote Sunak’ over leaked letter

READ MORE-‘Sunak’s in-laws face £5.5m demand in Amazon India tax dispute’

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Johnson ‘threatened to demote Sunak’ over leaked letter

It came shortly before the infamous “traffic light” rules were reviewed on Thursday. In his letter, Sunak said that the UK was “out of step” with the rest of the world…reports Asian Lite News.

UK Prime Minister Boris Johnson was said to have “threatened to demote Rishi Sunak to Health Secretary” after the Chancellor called for easing of travel restrictions, as per a note written him found its way into the public domain last weekend, Daily Mail reported.

The report said the UK government has been plunged into conflict as Johnson and Sunak clash over travel restrictions and green reforms, with the Chancellor eager for a tough spending review and the PM looking to avoid austerity measures.

It came shortly before the infamous “traffic light” rules were reviewed on Thursday. In his letter, Sunak said that the UK was “out of step” with the rest of the world.

The Chancellor is now preparing for a tough spending review later this year as he attempts to repair the public finances following the coronavirus crisis. That could put him on collision course with a Prime Minister who has promised there can be no return to austerity.

The PM told his allies that by writing the letter, which was copied to Transport Department, it was “bound” to be leaked – and fumed that he could move Sunak to Health, where former Chancellor Sajid Javid became the Secretary six weeks ago.

Johnson was said to have been “apoplectic”, and “raging” when he met senior Downing Street aides on Monday, The Sunday Times reported.

He suggested sacking Sunak following the Chancellor’s remarks calling for an easing of travel restrictions due to the threat they pose to the economy.

And in another sign of division, the Prime Minister’s green agenda hit a stumbling block amid growing fears that it will hit poorest households the hardest, with Sunak thought to be leading push-back against Johnson’s commitment to go net-zero by 2050.

ALSO READ-Johnson urges leaders to prevent Covid ‘legacy of wasted talent’

READ MORE-Johnson scraps amber watch-list plan amid chaos

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‘Sunak’s in-laws face £5.5m demand in Amazon India tax dispute’

UK Chancellor in-laws hit with 5.5m pound bill in Amazon India tax dispute: Report.

The emergence of case follows small traders claim they are being squeezed out of business by the multinational’s selling practices and that the US retailer’s 1 billion-pound-a-year venture with the chancellor’s father-in-law…reports Asian Lite News

A joint venture between UK Chancellor Rishi Sunak’s billionaire in-laws and the internet retailing giant Amazon is in a multimillion-pound dispute with the Indian tax authorities, a Guardian investigation has found.

The disclosure adds to the list of legal battles currently involving the joint venture, following news on Friday that India’s competition commission has been given permission to relaunch an investigation into Amazon.

The Guardian reported that small traders claim they are being squeezed out of business by the multinational’s selling practices and that the US retailer’s 1 billion-pound-a-year venture with the chancellor’s father-in-law, the technology entrepreneur NR Narayana Murthy, could be bypassing Indian foreign ownership rules.

N R Narayana Murthy(Wikipedia)

Amazon says it is operating in full compliance with local laws.

The emergence of the tax case follows last week’s G7 discussions, when the finance ministers of the world’s largest economies agreed a global deal designed to make tech companies pay more tax.

ALSO READ: Sunak warns of taxing times ahead

In India, foreign companies are banned from running an online retailer that holds inventory and then sells the goods directly to Indian consumers online. So, instead, the Amazon.in website is run as a “marketplace”, with Indian retailers selling their products via the site in return for a fee to the US giant, the report said.

One of the largest sellers on Amazon.in is a company called Cloudtail, a business indirectly 76 per cent — owned by an investment firm controlled by the Murthy family. The remaining quarter of Cloudtail is owned by Amazon.

An analysis of the company’s accounts and activities by the Guardian shows that Cloudtail: faces a 5.5 million pound demand — including “interest and penalties” — from India’s tax authorities has paid “meagre” taxes over the past four years, while using a business model described as Amazon “on steroids” has filled its top two posts — chief executive and finance director — with Amazon executives, while Cloudtail’s holding company, Prione, has also been run by former Amazon managers.

Cloudtail’s most recent accounts state: “The company has received a show cause notice in the current year from Directorate General of Goods and Service Tax Intelligence amounting to Rs 5,455 lakh (5.5 million pound) along with interest and penalties for service tax-related matters.”

It is not known precisely what the tax dispute is about. The company said it was contesting the bill, and added: “Since this matter is sub judice, we are unable to comment any further.”

ALSO READ: UK calls EU view of Northern Ireland ‘offensive’