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Boris and Rishi at war

Sunak said Johnson had asked him to over-rule advice from the House of Lords appointments commission…reports Asian Lite News

Rishi Sunak and Boris Johnson traded recriminations over the latter’s resignation honours list on Monday, as MPs prepared to publish what is expected to be a highly critical report about the former prime minister’s conduct.

Sunak accused Johnson of asking him to wave through a long list of allies to the House of Lords, prompting the former prime minister to say the current premier was “talking rubbish”.

The war of words came as MPs on the cross-party House of Commons privileges committee met to finalise their report into whether Johnson deliberately misled parliament about the partygate scandal.

Sunak rounded on Johnson after the latter on Friday announced he was quitting the Commons, with the former premier claiming the committee was engaged in a “political hit job” despite not having a “shred of evidence” against him.

Johnson made his shock move shortly after his resignations honours list was published, which contained peerages and other gongs for many of his allies.

Sunak said Johnson had asked him to over-rule advice from the House of Lords appointments commission, which vets nominations for peerages.

“When it comes to honours and Boris Johnson, Boris Johnson asked me to do something that I wasn’t prepared to do because I didn’t think it was right, either to over-rule the… committee or make promises to people,” said Sunak.

The Lords appointments commission has confirmed it rejected eight proposed candidates for peerages made by Johnson.

Downing Street has denied claims by Johnson’s allies that Sunak broke a promise to wave through the former’s entire resignation honours list.

“I wasn’t prepared to do that because I didn’t think that was right,” Sunak said at the Tech Week conference in London.

“And if people don’t like that, then tough. When I got this job I said I was going to do things differently because I was going to change politics.”

Johnson hit back angrily at Sunak, saying he had not asked for the Lords appointments commission to be overruled.

He appeared to suggest he wanted the commission to re-vet some of his nominees for peerages, saying: “To honour these peerages it was not necessary to over-rule [the commission] — but simply to ask them to renew their vetting, which was a mere formality.”

Meanwhile the Commons privileges committee is poised to release its report about Johnson’s conduct as soon as Tuesday.

The committee is expected to accuse Johnson of misleading the Commons when he said while prime minister that he did not know about parties held in Number 10 during Covid-19 restrictions.

MPs on the committee have been given additional security, amid accusations by Johnson that they have behaved like a “kangaroo court”.

Michael Gove, levelling-up secretary, told the BBC: “I do deprecate the fact [the MPs on the committee] are now in a position where, as reported, they have had to seek and have been granted additional security. I extend my sympathy to them and their families.”

Two former MPs who had expected to receive peerages from Johnson — Nadine Dorries and Nigel Adams — have announced they are also quitting the Commons, prompting three parliamentary by-elections.

Johnson and Adams have formally triggered the mechanism to step down from parliament, shifting the impetus to the government to decide when to call the by-elections.

Labour is confident of winning Johnson’s Uxbridge and South Ruislip constituency, where he had a majority of 7,210 at the last general election.

But Adams’ Selby and Ainsty seat in Yorkshire will be harder for Labour: the Tories have a 20,137 majority.

The Liberal Democrats are focusing their efforts on winning Dorries’ Mid Bedfordshire constituency, where the Conservatives have a 24,664 majority.

Speculation has intensified at Westminster about the prospect of Johnson attempting to return to the Commons at the next general election, after he said on Friday he was leaving parliament “for now”.

Senior Tory figures expressed split views about whether Johnson should be allowed to stand again as a Conservative parliamentary candidate after quitting.

One minister said: “He’s just resigned from his seat which has a 7,000-plus majority. What right does he have to seek another?”

However, one Conservative official said it would be highly unusual to block Johnson from joining the Tory parliamentary candidates’ list and “would cause yet another drama” in the party.

ALSO READ-Boris Johnson resigns as MP

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Rishi flexes muscles to sack Zahawi

Zahawi had issued a statement on 21 January which attempted to clarify his tax affairs, including a settlement he paid to HMRC last year…reports Asian Lite News

Prime Minister Rishi Sunak dismisses Conservative Party chairman Nadhim Zahawi following the independent ethics adviser Sir Laurie Magnus submitted his report.

The prime minister says it is “clear that there has been a serious breach of the Ministerial Code.” The prime minister ordered an investigation into Zahawi’s tax affairs after it emerged Zahawi paid a penalty to HMRC while he was chancellor, over previously unpaid tax. He was under pressure to fully explain the multi-million pound settlement.

Zahawi said when HMRC started asking questions he was under the impression he was “merely being asked certain queries by HMRC concerning his tax affairs.” But Sir Laurie found that Zahawi “should have understood at the outset that they were under investigation by HMRC and that this was a serious matter.”

Sir Laurie says Zahawi should have updated his declaration of interests form to reflect the investigation.

The PM got the report from his ethics adivser early this morning. He spoke to Zahawi to tell him he was being sacked, then it was confirmed publicly. The report from Sir Laurie Magnus left little room for any other conclusion than Zahawi’s departure.

Zahawi had said tax error was ‘careless and not deliberate’

Before he was sacked, Zahawi had issued a statement on 21 January which attempted to clarify his tax affairs, including a settlement he paid to HMRC last year.

“As a senior politician I know that scrutiny and propriety are important parts of public life,” Mr Zahawi claimed. “Twenty-two years ago I co-founded a company called YouGov. I’m incredibly proud of what we achieved. It is an amazing business that has employed thousands of people and provides a world-beating service. As a senior politician I know that scrutiny and propriety are important parts of public life. Twenty-two years ago I co-founded a company called YouGov. I’m incredibly proud of what we achieved. It is an amazing business that has employed thousands of people and provides a world-beating service.

“When we set it up, I didn’t have the money or the expertise to go it alone. So I asked my father to help. In the process, he took founder shares in the business in exchange for some capital and his invaluable guidance. Twenty-one years later, when I was being appointed chancellor of the exchequer, questions were being raised about my tax affairs. I discussed this with the Cabinet Office at the time.

“Following discussions with HMRC, they agreed that my father was entitled to founder shares in YouGov, though they disagreed about the exact allocation. They concluded that this was a ‘careless and not deliberate’ error. So that I could focus on my life as a public servant, I chose to settle the matter and pay what they said was due, which was the right thing to do.

Meanwhile, cabinet minister Michael Gove defended his former colleague.

“Nadhim is a friend of mine, so I can’t take any joy in the fact that these events have played out today in the way that they have,” he told BBC.

On the situation last summer at the time when Nadim Zahawi was paying his fine, Mr Gove said neither Liz Truss nor Rishi Sunak would have had any awareness of the situation.

“My understanding is that there was no information that was brought to the attention of the prime minister… neither Rishi Sunak or Liz Truss,” he said.

Asked how Mr Zahawi would feel about having threatened defamation action, Mr Gove said: “I am sure Nadim will be reflecting today on this whole question.”

Gove said the prime minister’s “way of operating” is driven by “a sense of duty and profound moral seriousness”.

You’re Fired

Prime Minister Rishi Sunak has sacked Tory party chairman Nadhim Zahawi, who was under pressure over his tax affairs. Here is the full text of the letter:

Dear Nadhim,

When I became Prime Minister last year, I pledged that the Government I lead would have integrity, professionalism and accountability at every level.

That is why, following new information which came to light in recent days regarding your personal financial arrangements and declarations, I asked Sir Laurie Magnus, the Independent Adviser on Ministers’ Interests, to fully investigate this matter. You agreed and undertook to cooperate fully with the inquiry.

Following the completion of the Independent Adviser’s investigation – the findings of which he has shared with us both – it is clear that there has been a serious breach of the Ministerial Code. As a result, I have informed you of my decision to remove you from your position in His Majesty’s Government.

As you leave, you should be extremely proud of your wide-ranging achievements in government over the last five years. In particular, your successful oversight of the COVID-19 vaccine procurement and deployment programme which ensured the United Kingdom was at the forefront of the global response to the coronavirus pandemic. Your role was critical to ensuring our country came through this crisis and saved many lives. And as the Conservative Party Chairman, you have undertaken significant restructuring to Conservative Campaign Headquarters and readied us for important work in the coming months.

It is also with pride that I, and previous prime ministers, have been able to draw upon the services of a Kurdish-born Iraqi refugee at the highest levels of the UK government. That is something which people up and down this country have rightly valued.

I know I will be able to count on your support from the backbenches as you continue to passionately and determinedly serve your constituents of Stratford-on-Avon and represent the many issues and campaigns you are dedicated to. Thank you for your service to this and previous governments.

Yours sincerely,

Rishi Sunak

ALSO READ-Zahawi allows HMRC to pass tax details to ethics adviser

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Why Rishi lost the race?

Several other MPs too switched sides. Meanwhile, Liz became stronger with her moves as the race progressed…reports Asian Lite News

Rishi Sunak had an advantage as he threw his hat early in the ring and was endorsed by four former chief whips, but within weeks, he started trailing behind the late-comer Liz Truss

Touted as the favourite initially for the race to Downing Street, Rishi Sunak started losing his spark midway. Sunak had a huge advantage as he threw his hat early in the ring and was endorsed by four former chief whips, but within weeks, he started trailing behind the late-comer Liz Truss in the UK prime ministerial race.

‘Ready for Rishi’

Hours after Boris Johnson announced his resignation, Sunak threw his hat into the ring with a campaign video titled ‘Ready for Rishi’. Even though it gave him the initial advantage, the act was a thorough mark of trust deficit in his boss and mentor.

Moreover, even as he gained massive support from his party at first, he started losing them including Sajid Javid, Nadhim Zahawi and then, finally, Mordaunt. Several other MPs too switched sides. Meanwhile, Liz became stronger with her moves as the race progressed.

Apart from that, even though Sunak became popularity shot up immediately after Johnson’s resignation, his image to be a backstabber was never forgotten.

Why did Sunak become unpopular?

Rishi Sunak’s image was permanently tainted when a video of his came into foray where he accepted that he took money from deprived urban areas. His comments, boasting of shifting money from “deprived urban areas” to fund projects in the Kent commuter belt sparked outrage, considering it cut across the UK government’s rhetoric about ‘levelling up’ Britain and spreading wealth beyond the south-east.

Things turned worse when reports claimed that his wife Akshata is wealthier than British Queen Elizabeth II with assets worth £430 million, according to Sunday Times Rich List. In fact, they were mentioned to be Westminster’s first billionaire couple, probably enjoying the largest fortune of any House of Commons family. Their finances came under scrutiny as Labour party called him to be more transparent regarding loans he took to fund his businesses.

The Guardian reported, Rishi was forced to explain details about how he managed his family’s fortune, which is said to total £730million. His fortune’s are derived from his marriage to Akshata Murthy, who owns a 0.93% stake worth £690m in Infosys.

Sunak comes in support of Truss

Hours after he lost the race, Sunak showed his support to Liz Truss. “It’s right we now unite behind the new PM, Liz Truss, as she steers the country through difficult times,” Sunak said on Twitter.

ALSO READ-No place for white men in Truss’ cabinet?

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Rishi denies wife’s Russia link

Sunak’s spokesperson said Murthy had no role in Infosys’s operational decisions…reports Asian Lite News

Rishi Sunak has denied any connection with a multinational firm part-owned by his wife that has continued to operate in Russia during the war in Ukraine, BBC reported.

The UK Chancellor said he had “nothing to do” with Infosys, in which his wife Akshata Murthy holds shares. He has also urged UK firms to pull out of Russia to inflict “economic pain” on President Vladimir Putin.

Sunak’s spokesperson said Murthy had no role in Infosys’s operational decisions.

Pressed on Infosys’ presence in Russia, Sunak told Sky News on Thursday: “I’m an elected politician, and I’m here to talk to you about what I’m responsible for. My wife is not.”

He added that companies’ operations were “up to them”.

“We’ve put in place significant sanctions and all the companies we’re responsible for are following those, as they rightly should,” said the Chancellor.

The software giant was co-founded by Murthy’s father Narayana Murthy, who retired from the company in 2014, BBC reported.

Founded in 1981, the firm has since expanded into a number of countries and operates an office in Moscow.

The most recent annual report lists Akshata Murthy as holding 0.9 per cent of the company’s shares — reportedly worth hundreds of millions of pounds.

Earlier this month, Sunak had said the government would “fully support” UK firms that pull out of Russia voluntarily.

After meeting a group of leading British companies, the Chancellor said he welcomed the “consensus on the need to inflict maximum economic pain on Putin and his regime”.

“While I recognise that it may be challenging to wind down existing investments, I believe there is no argument for new investment in the Russian economy,” he added.

ALSO READ-‘Dishy Rishi’ Draws Flak For Failing Working Families

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‘Dishy Rishi’ Draws Flak For Failing Working Families

Chancellor Rishi Sunak unveiled his Spring Statement with measures to ease the pressure on working families. But the TUC accused the chancellor of ignoring the plight of working families … reports London Daily Digital Newsdesk

Chancellor Rishi Sunak announced that he is increasing the rate at which workers start paying national insurance to £12,570 to ease the burden on the low paid. The national insurance threshold will now be in line with income tax from July this year.

He also announces that fuel duty will be cut by 5p per litre from 6pm today.

Responding to the Spring Statement, which forecasts that wages will fall in value by 2.0% this year, the equivalent to a real terms £552 pay cut, TUC General Secretary Frances O’Grady said: “In the midst of the biggest wages and bills crisis in living memory, Rishi Sunak’s Spring Statement has failed families who need help now.  

“We did not get the urgent help with soaring bills that families need. And the rise in the national insurance threshold will mostly benefit better-off households.

“The Spring Statement small print shows that pay packets are now expected to fall in value by £11 a week this year. After 12 years of Tory government, Britain needs a pay rise. But this Chancellor has no plan to get wages rising and give working people long-term financial security.”

Responding to the Chancellor’s failure to penalise P&O parent company DP World following their sacking of nearly 800 workers with no notice and no consultation last week, Frances added:

“Not only is the Chancellor not standing up for struggling families, he is not standing up to bad bosses. He should have taken all public contracts off DP World, including freeports, and clawed back all funding they received during the pandemic until they reinstate the workers. Bad bosses should know they are not welcome to do business in the UK.”

Shadow chancellor Rachel Reeves said the Conservatives ‘have become the party of high taxation’

Reeves said the chancellor could have “introduced a windfall tax on oil and gas companies”, “properly scrapped his national insurance hike” and “set out a proper plan to support businesses and create jobs”, adding: “But he didn’t.”

She continued: “Inflation is at its highest level for 30 years and rising. Energy prices at record highs. People are worried sick. For all his words, it is clear that the chancellor does not understand the scale of the challenge. He talks about providing security for working families, but his choices are making the cost of living crisis worse, not better.”

Ms Reeves also said the Conservatives “have become the party of high taxation because they are the party of low growth”.

  • The UK economy is forecast to grow by 3.8% this year, , a sharp cut from its previous prediction of 6.0%
  • The economy is then forecast to grow by 1.8% in 2023, 2.1% in 2024, 1.8% in 2025 and 1.7% in 2026
  • The annual inflation rate was 6.2% in February, and is likely to average 7.4% for the rest of this year, but with peak of 8.7% in the final quarter of 2022
  • The unemployment rate is now predicted to be lower over the next few years than in the OBR’s previous forecast in October
  • Debt as a percentage of GDP is expected to fall from 83.5% of GDP in 2022/23 to 79.8% in 2026/27
  • The government is forecast to spend £83bn on debt interest in the next financial year, the highest on record

ALSO READ-Rishi Sunak to unveil mini budget