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Sunak’s rating tanks after damaging revelations

He’s been criticized — including by members of his own party — for failing to help the most vulnerable families cope with a cost of living crisis when he gave an economic statement last month…reports Asian Lite News

Rishi Sunak’s favorability rating turned negative for the first time, sinking below that of Prime Minister Boris Johnson, after a slew of damaging stories about the Chancellor of the Exchequer’s financial affairs and the perception he isn’t doing enough to help Britons facing surging living costs.

Sunak posted a net rating of minus 20 in the latest monthly tracker poll by Savanta ComRes, published on Wednesday. That’s down 26 points in a month, and compares with a high of plus 30 in 2020. The online poll of 2,145 U.K. adults was conducted April 8-10, before both the chancellor and Johnson were fined by police for breaking the coronavirus rules their own government made.

The survey is the latest blow for the chancellor, who made himself popular by opening the Treasury’s spending taps during successive Covid-19 lockdowns and until just weeks ago was widely touted by politicians and the press as Johnson’s most likely successor.

He’s been criticized — including by members of his own party — for failing to help the most vulnerable families cope with a cost of living crisis when he gave an economic statement last month.

Then last week came a series of damaging revelations, including that his wife Akshata Murthy, holds non-domiciled status in the UK, meaning she doesn’t pay British taxes on her foreign earnings. Under intense pressure, the daughter of an Indian billionaire, Infosys Ltd. co-founder Narayana Murthy, later said she would now do so.

Sunak was also forced to acknowledge he had held a US green card until October 2021 — by which time he’d been chancellor for more than a year and a half. Along with his wife’s tax status, the news fueled the perception that the family didn’t see their long-term future in the UK.

“The fact we’ve seen such a drop in favorability during a tumultuous month for the chancellor ultimately points to the fact that all public goodwill he may have built up during the pandemic has all but evaporated,” Savanta ComRes Political Research Director Chris Hopkins said. “A 26-point drop in one month feels unprecedented,” yet could have been even worse if the polling had been carried out after Sunak was fined, he said.

Meanwhile Johnson’s rating increased for a third month, to minus 19 points. Some 34% of people surveyed said they would vote in an election for the ruling Conservatives, while 40% opted for the main opposition Labour Party.

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Economy UK News

Inflation soars to 30-year high of 7%

The month-on-month rise was the highest for the time of year since the ONS records began in 1988…reports Asian Lite News

Consumer prices in the United Kingdom rose at the fastest pace in three decades in March, official data showed Wednesday, piling pressure on the embattled Prime Minister Boris Johnson and his finance minister, Rishi Sunak, to ease the cost-of-living squeeze.

Fueled by soaring prices for household energy and motor fuels, the U.K. inflation accelerated to 7% in the 12 months through March, the highest annual rate since March 1992, the Office for National Statistics (ONS) reported.

The reading was up from 6.2% in February and came in more than expected by most economists.

The month-on-month rise was the highest for the time of year since the ONS records began in 1988.

Households are facing the biggest cost-of-living squeeze since the mid-1950s, according to Britain’s budget forecasters, as rocketing energy costs, rising food prices and tax increases overshadow rising wages.

And the inflation overshoot is further bad news for the government too.

Disposable household incomes, adjusted for inflation, are expected to drop by 2.2% this year, according to the government’s independent budget adviser.

Broad-based price rises, ranging from vehicle fuel to food and furniture, were behind the increase.

Household natural gas prices jumped 28.3% over the last year, and electricity prices rose 19.2% as the global economy recovered from the COVID-19 pandemic, increasing the worldwide demand for energy.

Prices will continue to rise after Britain’s energy regulator authorized a 54% increase in gas and electricity bills for millions of households that took effect in April.

Transportation costs are also rising, with the cost of gasoline and diesel fuel shooting up by an average of 30.7% over the past year, the biggest increase since current records began in January 1989, the ONS said.

British inflation has seen an unprecedented rise over the past year, following a similar pattern to most other advanced economies as countries reopened from COVID-19 lockdowns, energy prices surged and pandemic supply-chain difficulties persisted. Adding to the pressure is the fallout from the war in Ukraine.

Russia’s invasion of Ukraine on Feb. 24 has pushed energy prices even higher, and last month Britain’s Office for Budget Responsibility forecast inflation would peak at a 40-year high of 8.7% in the final quarter of 2022.

“We’re seeing rising costs caused by global pressures in our supply chains and energy markets, which could be exacerbated further by Russian aggression in Ukraine,” Sunak said.

“I know this is a worrying time for many families,” added the embattled chancellor of the exchequer.

ALSO READ-Inflation, Fuel Price Rise Rock London Businesses

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Taxing times for Sunak

In a letter to PM Boris Johnson published, Sunak said he wants a probe by the government’s adviser on ministerial standards to help ensure the public “retain confidence in the answers they are given.”

Rishi Sunak asked for a formal review into whether he properly declared his financial interests, as the UK Chancellor of the Exchequer tries to defuse a row over his tax affairs that threatens to derail his career.

In a letter to Prime Minister Boris Johnson published late Sunday, Sunak said he wants a probe by the government’s adviser on ministerial standards to help ensure the public “retain confidence in the answers they are given.”

The move comes as he faces intense pressure to lay out the details of his and his family’s financial arrangements. It emerged last week his millionaire wife, Akshata Murthy, holds non-domicile status and was not paying UK taxes on her overseas income and the chancellor held a US green card — proof of permanent residency — which he only gave up more than a year and a half into his current role.

The opposition Labour Party said it wrote to Johnson and the standards adviser earlier Sunday demanding a probe into whether ministerial rules had been broken. “A fish rots from the head, Labour’s deputy leader Angela Rayner said in an emailed statement. “It is the prime minister’s responsibility to bring this debacle to a close by ensuring that standards are upheld across his cabinet.”

The furore compounds the problems facing Sunak, whose popularity has slumped since he was accused of not doing enough to help Britons facing a record slump in living standards. In a mini-budget last month, he went ahead with a levy increase to fund health care and rejected calls to boost welfare payments.

The country’s tax burden now at its highest level since the 1950s, so the backlash when it was revealed Murthy holds so-called non-domicile status — allowing her to not pay British tax on overseas income — was inevitable.

Though she said late Friday she would no longer take advantage of that rule and would now pay UK taxes on her foreign earnings, it is unlikely the scrutiny will fade. Together with the revelation about Sunak’s green card, the reports have fueled the perception the family is not committed to Britain.

By requesting an inquiry, Sunak wants the findings to help draw a line under the issue. But it also carries the risk of keeping the focus on his financial arrangements. Labour is asking if the chancellor has taken advantage of tax havens and demanding “full transparency” on where the family pays taxes.

“I have always followed the rules and I hope such a review will provide further clarity,” Sunak said on Twitter where he posted the letter to Johnson.

Outstanding job

PM Johnson has so far defended Sunak, telling reporters on Friday the chancellor is doing an “outstanding job” — though he also said he had not been aware of Murthy’s tax status.

The fallout illustrates the dramatic turnaround in their fortunes. Just weeks ago Johnson was clinging to power, with members of his Conservative Party threatening to oust him over allegations of rule-breaking parties during the pandemic. At the time, Mr Sunak was seen as Johnson’s most likely successor.

Boris Johnson hosts the Prime Ministers Business Council alongside the Rishi Sunak, Chancellor of the Exchequer and leading business figures in 10 Downing Street. Picture by Simon Dawson / No 10 Downing Street

That was before Russia’s invasion of Ukraine. Since then, Johnson’s personal approval ratings have recovered and several Tory MPs have said an international crisis is not the time for a leadership change.

Now the question is whether PM Johnson keeps Sunak in the role, as some Tories speculate about a change in chancellor during a ministerial shuffle in the coming months.

Different views

The country’s two most powerful politicians have very different economic approaches, with Johnson more inclined toward spending on big infrastructure projects and the chancellor — the tax rises on his watch not withstanding — styling himself as a low-tax, fiscal conservative.

Sunak’s slumping popularity helps solidify Johnson’s position by removing an obvious challenger, but it also carries big risks. The reports about the chancellor’s wealth and his family’s tax affairs play into Labour’s regular attack on the Tories, that “it is one rule for them and another for the rest of us.”

Local elections in London and across much of the UK on May 5, therefore, loom large for PM Johnson, Sunak and the Tories — especially if the cost-of-living crisis hits support for the party.

“Today I have written to the Prime Minister asking him to refer my ministerial declarations to the Independent Advisor on Ministers’ Interests. I have always followed the rules and I hope such a review will provide further clarity,” he tweeted.

ALSO READ-Rishi Sunak demands probe over wife Akshata Murty’s tax leak

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Opposition puts Sunak in a spot

Prime Minister Boris Johnson refused to be drawn over the issue when asked to comment during a visit to a nuclear power plant for the launch of the country’s new energy strategy

The Opposition has questioned the non-domicile tax status of India-born Akshata Murty, daughter of Infosys co-founder Narayana Murthy, and demanded an urgent explanation from Chancellor Rishi Sunak.

A non-domicile status means Murty, who owns shares in Infosys, is not legally bound to pay tax in the UK on income earned overseas.

A spokesperson for Murty, 42, who is a director at venture capital firm Catamaran UK, said the non-domicile status is because India does not recognise dual nationality and that the professional pays all the legally required tax in the UK.

“Akshata Murty is a citizen of India, the country of her birth and parent’s home,” the spokesperson said.

“India does not allow its citizens to hold the citizenship of another country simultaneously. So, according to British law, Ms Murty is treated as non-domiciled for UK tax purposes. She has always and will continue to pay UK taxes on all her UK income,” the spokesperson said.

Prime Minister Boris Johnson refused to be drawn over the issue when asked to comment during a visit to a nuclear power plant for the launch of the country’s new energy strategy on Thursday.

“I think it is very important in politics if you possibly can to try and keep people’s families out of it,” said Johnson.

But Opposition Labour leader Sir Keir Starmer called the so-called “non-dom” arrangement “breathtaking hypocrisy” and insisted Johnson’s finance minister had “very serious questions to answer” about his family’s finances.

“It shows yet again that we have got a Chancellor who is completely out of touch with the struggles that so many people in this country are going through at the moment with this cost-of-living crisis,” said Starmer.

The Liberal Democrat party also demanded that Sunak “needs to come clean” about which country his family pays tax in abroad and if it is a tax haven.

The details of Murty’s tax status first emerged in ‘The Independent’ newspaper on Wednesday, just as new taxes announced by Sunak come into force for the new financial year. The Opposition Labour Party demanded an explanation if his family, currently based at 11 Downing Street, was benefitting from tax reduction schemes such as being registered as non-domiciled.

“The Chancellor has imposed tax hike after tax hike on the British people. It is staggering that — at the same time — his family may have been benefitting from tax reduction schemes,” said Tulip Siddiq, Labour’s shadow economic secretary to the Treasury.

“Rishi Sunak must now urgently explain how much he and his family have saved on their own tax bill at the same time he was putting taxes up for millions of working families,” said the British Bangladeshi minister.

Under British law, Murty — who has lived in the UK for nine years — would be automatically deemed domiciled in the UK after 15 years.

According to government sources, it is understood that Sunak declared his wife’s tax status to the Cabinet Office when he became a minister in 2018 and also as he took on his first role in the UK Treasury a year later.

The latest focus on Sunak’s wife comes in the wake of attacks last month over Infosys presence in Moscow, while the UK Chancellor imposed economic sanctions and called upon all UK businesses to end their Russian dealings over the conflict in Ukraine. In a BBC podcast last month, the 41-year-old minister had spoken out about his anger at his wife and her father being targeted.

“It’s very upsetting and, I think, wrong for people to try and come at my wife, and you know, beyond that actually, with regard to my father-in-law, for whom I have nothing but enormous pride and admiration for everything that he’s achieved. And no amount of attempted smearing is going to make me change that because he’s wonderful and has achieved a huge amount, as I said, I’m enormously proud of him,” he said.

Sunak has come under pressure in recent weeks after his mini-Budget last month was seen as not doing enough to tackle the rising cost of living crisis amid soaring energy and fuel prices amid the knock-on impacts of the pandemic and the Russia-Ukraine conflict. The British Indian finance minister has insisted that he has put in measures to help the poorest and said his job was to make the “right long-term decisions” and avoid “excessive amount of borrowing”.

ALSO READ-NATO agree to supply heavy weapons to Ukraine

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MORALLY WRONG! DOUBLE STANDARDS!

‘This news will be a slap in the face for families struggling to cope with Rishi Sunak’s crippling tax hike’

Opposition Labour and Liberal Democrats turn heat on Chancellor Rishi Sunak as media reveal that his is avoiding British tax through the infamous non-dom route.

Responding to the news that the chancellor wife claims non-domicile tax status, Liberal Democrat Treasury Spokesperson Christine Jardine said Sunak must come clean on family tax affairs.

“This news will be a slap in the face for families struggling to cope with Rishi Sunak’s crippling tax hike,” she said in a statement.

“Sunak now needs to come clean about which country his family pays tax in abroad and if it is a tax haven. He is clobbering people with an unfair tax rise at the worst possible time, it won’t wash for him to try and brush this issue under the carpet.”

Diane Abbot MP

Tory Chancellor Rishi Sunak refused to put up benefits in line with inflation, most Brits continue to see their taxes rise despite his supposed “cuts.” But his billionaire wife will save millions in tax by claiming “non-dom” status. #DoubleStandards

Labour’s Diane Abbot said: Tory Chancellor Rishi Sunak refused to put up benefits in line with inflation, most Brits continue to see their taxes rise despite his supposed “cuts.” But his billionaire wife will save millions in tax by claiming “non-dom” status. #DoubleStandards she tweeted.

“The Chancellor has big questions to answer,” said Tulip Siddiq MP. “He must urgently explain how much he has benefited at the same time he was putting taxes up for millions of working families and choosing to leave them £2620 a year worse off.”

Tulip Siddiq MP

“The Chancellor has big questions to answer. He must urgently explain how much he has benefited at the same time he was putting taxes up for millions of working families and choosing to leave them £2620 a year worse off.”

“It is definitely legal, but is it right?,” asked Ed Miliband, the shadow secretary of state for climate change. “It’s “very surprising” that Rishi Sunak’s immediate family is “sheltering a large part of their income” from UK tax.”

The issue also rekindled the Jimmy Carr tax avoidance case. The prime minister David Cameron said that it is morally wrong.sss

The chancellor’s wife Akshata Murthy is the daughter of Narayana Murthy, the billionaire co-founder of IT services company Infosys, and she owns around 0.93% of the company. The tax status means she would not pay taxes in Britain on dividends from the Indian business.

The news, which featured prominently in Britain’s newspapers on Thursday, comes as the government is putting up taxes in for millions of people.

Murthy’s spokeswoman said as a citizen of India, Murthy was treated under British law as non-domiciled for UK tax purposes because India does not allow its citizens to hold the citizenship of another country simultaneously.

Sunak, who became finance minister in February 2020 just as the country entered the COVID-19 pandemic, is now facing some of the toughest economic conditions in decades, with inflation soaring and living standards set to drop to levels last seen in the 1950s.

To help fund the rebuilding of the country’s national health service and its public finances, he has increased the tax take to the highest level since the 1940s.

“Akshata Murty is a citizen of India, the country of her birth and parent’s home,” the spokeswoman said in a statement. “India does not allow its citizens to hold the citizenship of another country simultaneously.

“She has always and will continue to pay UK taxes on all her UK income.”

A person familiar with the situation said Sunak had declared his wife’s status to the government when he became a minister and the Treasury department was also informed. The person who asked not to be named due to the sensitivity of the matter added that Murthy pays foreign taxes on her foreign income.

ALSO READ-Boris, Xi hold phone call over Ukraine

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Firms send SoS to Sunak

Business forums and leading business people are urging Chancellor Rishi Sunak to unveil schemes to help small and medium businesses…reports Asian Lite News

Chancellor Rishi Sunak must use Wednesday’s Spring Statement to help businesses tackle unprecedented cost pressures head on, leading business forums and captains of the industry said.

Reports suggest Mr Sunak is set to cut fuel duty in a bid to stave off a cost of living crisis, after petrol and diesel prices reached record highs over the past fortnight.

“The economic consequences of the pandemic are still being felt by small businesses, whose ability to make up for lost time and income has been undermined by a vicious cycle of rising costs,” said Martin McTague, National Chair of the Federation of Small Businesses (FSB).

https://www.youtube.com/watch?v=kS_L_Z4ze7s

 “Consumer confidence has plunged and the cost-of-living squeeze has intensified, with record fuel prices and sky-high utility bills meaning loss of disposable income. Small businesses increasingly feel that the Government is indifferent to the cost pressures they face.

 “The planned hikes to national insurance and dividend taxation taking effect in a matter of days, alongside an income tax threshold freeze, will, for many, be the final straw. Increasing the Employment Allowance, upping the small business rates relief threshold on rates, and taking action on surging fuel and utility bills would all help.

 “‘Pay as you grow’ options to spread the pressure of debt repayments should be opened up to users of other state-backed loan schemes beyond just bounce-backs. We urgently need to see the Chancellor ease the pressure on the five and a half million small firms and sole traders on which our recovery will depend.” 

The Greater Birmingham Chambers of Commerce has issued a six-point plan it would like to see the Chancellor introduce in a bid to help firms cope with soaring costs.

The GBCC is calling on the Chancellor to take the following actions:

@ Introduce an energy price cap for businesses

@ Provide SMEs with energy grants

@ Introduce additional support for energy efficiency

@ Delay planned National Insurance rises for a year

@ Continue reform of the business rates system

@ Extend the VAT reduction for hospitality businesses

Raj Kandola, head of policy at Greater Birmingham Chambers of Commerce, said: “Often viewed as a minor fiscal event in relation to the Autumn Budget, the crisis in Ukraine coupled with the escalation of the cost of living crisis means the importance of the Spring Statement has been elevated to a whole new level.

 “Whereas as the Chancellor has preached the importance of fiscal rectitude over the previous few months,  the ongoing fallout from Covid-19, rocketing levels of inflation and sky-high energy bills means businesses are facing unprecedented cost pressures – as early analysis from our latest Quarterly Business Report survey reveals.

 “Right now, we need the Government to act decisively and tackle these issues head on – implementing our six-point plan would give businesses the breathing space they need to get back on their feet and plan ahead with a modicum of certainty.

 “As always the Chamber will be on hand to provide a full breakdown of the announcements made on the day and the potential impact they are likely to have businesses in the region.”

Pvt. Sector Investments

The industry body responsible for the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS), the EIS Association (EISA) is calling for the Chancellor to recognise the importance of private sector investment into the UK’s early stage growth businesses.

The Enterprise Investment Scheme supports the Government’s growth agenda by helping early stage, high risk UK companies to attract the investment needed to grow their businesses.

In the current difficult market conditions for entrepreneurs, assurances of the availability of the EIS incentives for investors is critical to the UK’s continued standing as a world leader in innovation.

Boris Johnson and Rishi Sunak Post Budget visit Teesport. Prime Minister Boris Johnson and Chancellor Rishi Sunak visit Teesport in Teeside the day after the 2021 Budget. Picture by Andrew Parsons / No 10 Downing Street

The EISA is calling on the Chancellor to give reassurances in one principal area:

@ A commitment that every effort will be made to ensure the continuation of the EIS scheme beyond the current sunset clause of 2025.

Director General of the EISA, Christiana Stewart-Lockhart commented, “We all recognise that the Chancellor has an enormous job to do given the current economic challenges, and ensuring that we support the country’s growth businesses, bringing with them employment, profitability and tax income is crucial to our economic recovery. Making the EIS permanent would provide some much-needed certainty for early stage companies looking to raise equity and for the individuals investing in them. At the top of our wish list is confirmation that the scheme will be extended beyond 2025, so that both entrepreneurs and investors can plan their future for the benefit of the economy as a whole.”

ALSO READ-Sunak resists rise in defence spending

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Sunak resists rise in defence spending

The chancellor said he had already allocated a £24bn cash increase for military spending over four years, while allies said his spring statement was not a moment to announce more, reports Asian Lite News

Rishi Sunak is resisting pressure for a big increase in defence spending this week in the wake of Russia’s invasion of Ukraine, as he attempts to free up money for cuts in fuel duty and taxes to ease the crisis in the cost of living.

Sunak has told ministers he is turning off the spending taps and they will have to make do with the money they have got, ordering a search for £5.5bn of efficiency savings.

He has vowed to cut taxes but has warned that reductions must be funded by controlling public spending. Sunak’s allies believe the defence and health budgets are particularly badly managed.

The chancellor said on Sunday he had already allocated a £24bn cash increase for military spending over four years, while allies said his spring statement on Wednesday was not a moment to announce more.

“This is not a spending review,” said one ally of the chancellor. Sunak told the Mail on Sunday: “Let’s not be spending any more money — let’s make sure the money we’re spending is spent really well.”

Sunak argued that he increased the military budget before the Russian invasion of Ukraine, telling the BBC’s Sunday Morning programme that was “a good thing”.

He insisted the government’s integrated defence and foreign policy review last year recognised the Russian threat, although critics claim the document was overly preoccupied with a “tilt to the Asia-Pacific”.

With Sunak attempting to hold down public spending, he is expected to use his spring statement to start mitigating cost-of-living pressures, as households confront soaring energy prices and rising inflation.

The chancellor said he would help families struggling with the cost of living when he presents updated economic forecasts on Wednesday, saying: “Where we can make a difference, of course we will.”

Sunak admitted that energy prices were “the number one priority” for people at the moment and that, as MP for the rural Yorkshire constituency of Richmond, he knew fuel prices were “a big issue”.

“It’s something that’s challenging to families, I get that,” he said, hinting at fuel duty cuts. He said his policy was to take “targeted action where we think there is most acute pressure”.

Sunak is under pressure to go further and cut taxes more generally, and said they would come down “over time”. He blamed the pandemic for the fact Britain has its highest overall tax burden since the 1950s.

But he refused to say whether he would cut income tax or change the threshold for the payment of national insurance in the spring statement, as many Tory MPs would like.

The chancellor said his priority was to cut taxes over the rest of the parliament, after analysis showed he had raised taxes more in two years than Gordon Brown, former Labour chancellor, did in a decade.

Sunak insisted that Brown had not had to contend with a pandemic, but his credibility with Conservative MPs now rests on his ability to control spending and push down taxes before the election.

The Labour party is calling for a reversal of the £12bn national insurance rise, which Sunak insisted would go ahead in April to help fund the NHS and deal with a treatment backlog. Labour also wants a windfall tax on North Sea oil companies.

Rachel Reeves, shadow chancellor, said it was about time Sunak lived up to his rhetoric about wanting to cut taxes and said Labour would not “stand in the way” if he decided to cut fuel duty by 5p a litre.

ALSO READ-Sunak calls on G7 to go faster in support of Ukraine

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Sunak admits attending controversial lockdown party

He acknowledged that the scandal surrounding parties during lockdown at Downing Street had damaged the public’s trust in the government, reports the Mirror…reports Asian Lite News

Chancellor of Exchequer Rishi Sunak has reportedly admitted to attending Prime Minister Boris Johnson’s lockdown birthday party in 2020 but refused to say what happened when he entered the room and claimed that he was in the Cabinet Room for a Covid meeting.

Johnson’s five aides, including longstanding policy chief Munira Mirza, chief of staff Dan Rosenfield, principal private secretary Martin Reynolds, and communications director Jack Doyle, resigned from their posts within hours of each other on Thursday, after a damning investigation revealed that multiple parties took place at Downing Street while the rest of the United Kingdom was living under strict Covid lockdown rules.

Sunak, who lives next door to the Prime Minister in Downing Street, is also reported to have attended a surprise birthday party for Johnson in No. 10’s Cabinet Room in June 2020.

He acknowledged that the scandal surrounding parties during lockdown at Downing Street had damaged the public’s trust in the government, reports the Mirror.

But, the Indian-origin Chancellor said, he believed his plans to deal with the cost of living crisis would help restore it.

Officers from the Met Police are investigating a total of 12 Downing Street parties.

It is believed that as many as six of those could have been attended by the Prime Minister.

Sack Sunak, cabinet colleague reportedly tells PM

One cabinet colleague is reported to have asked British Prime Minister Boris Johnson to sack Rishi Sunak, the capable Indian-origin Chancellor of the Exchequer in the same government. Two other ministers are said to have warned the Premier the Sunak is “on manoeuvres” for leadership of the ruling Conservative party. Both revelations were carried prominently by the Independent newspaper published out of London.

Meanwhile, The Observer, a Sunday paper, headlined: “Johnson’s removal is now inevitable, warns loyalist.” Sir Charles Walker said in an interview: “It is an inevitable tragedy. He (Johnson) is a student of Greek and Roman (for he studies Classics at Oxford University). It is going to end in him going, so I just want him to have some agency in that.” Earlier in the week, he told Channel Four News he would be stepping down as MP.

He added: “It is just not going to get better.” Sir Charles is a former Vice Chairman of the powerful ‘1922 Committee’ of backbench Conservative MPs, who are vested with the role of conducting leadership contests in the event there is a motion of no confidence in an incumbent prime minister. For a motion to be triggered, 15 per cent of the party’s MPs – 54 on the basis of its present strength in the House of Commons – have to demand such a vote.

The Independent had a different take on “partygate”, though, which has plagued Johnson for nearly two months. Conservatives MPs it spoke to, expressed the view that an “accidental” or premature no confidence vote could go in Johnson’s favour. This means MPs are hesitant to bring him down before London’s Metropolitan Police’s investigation into whether Covid-19 lockdown laws were broken by the 12 “parties” at the Prime Minister’s office-cum-residence at 10 Downing Street is complete. The outcome of this is expected in about a week. There are indications Johnson was present in at least three of the gatherings.

Under Conservative party rules, a leadership contest cannot take place more than once a year. In other words, if Johnson survives an early test, he cannot be challenged for another year.

While he promised a shake-up at Downing Street after a redacted report on “partygate” by senior civil servant Sue Grey found that Covid-19 rules had been serially violated within its premises, he was rocked by resignations of five close and senior aides before the weekend. His effort to bring in new staff have since apparently floundered.

Unusually for Britain, he brought in fellow minister Steve Barclay as chief of staff, a post generally occupied by a bureaucrat. This gave the impression civil servants are not keen to take up positions at the centre of political power as they possibly think Johnson’s future is uncertain.

He also appointed a former BBC journalist Guto Harri as director of communications. Harri worked with him in the same capacity when he was Mayor of London, In between, this Welshman has been a critic of Johnson, once warning publicly he would be a “divisive” Prime Minister.

Information filtering out of Downing Street over the weekend spoke of Johnson adopting a bunker mentality. Insiders were quoted as saying he had become “unpredictable and erratic”.

Lawmaker submits letter of no confidence in PM

Aaron Bell, a British lawmaker in the ruling Conservatives, said on Friday he had submitted a letter of no confidence in Boris Johnson, saying the prime minister’s handling of Downing Street lockdown parties had made his position untenable.

Johnson could face a vote of no confidence in his leadership if 54 of his 360 Conservative lawmakers submit a letter to the chairman of the party’s 1922 Committee.

Bell said he was profoundly disappointed in the situation after he backed Johnson to become leader.

“However the breach of trust that the events in No. 10 Downing Street represent, and the manner in which they have been handled, makes his position untenable,” he said in a statement on Twitter.

ALSO READ-Queen joins select group of longest-reigning monarchs

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MEDIA SCAN: ‘Dishy’ Rishi favourite for next UK PM and China enters Bhutan

Indian-origin Rishi Sunak is the favourite to be the next UK PM and China is reportedly building villages in Bhutan…writes Joyeeta Basu

At least nine people were killed and 36 injured in a train accident in West Bengal, India. The accident occurred after the Bikaner-Guwahati Express train derailed near Bengal’s Jalpaiguri district on Thursday, reported NDTV. Railway Minister Ashwini Vaishnaw has rushed to the site.

COVID-19: India reported 2.64 lakh fresh cases with the positivity rate up from 13 per cent to 14.7 per cent from yesterday. But the cases are expected to dip from today, said Health Minister Satyendra Jain, reports NDTV.

‘Dishy’ Rishi next UK PM? Rishi Sunak, the Indian-origin Chancellor of the Exchequer, is tipped as the bookmakers’ favourite to succeed the current incumbent Boris Johnson as Prime Minister of the United Kingdom. The odds on Sunak are 9/4, according to Oddschecker, a UK comparison site.

Award-winning reporter dies: NDTV’s Kamal Khan, a veteran journalist known for his deep insights into Uttar Pradesh politics, died at his home in Lucknow this morning after suffering a heart attack. Kamal was with NDTV for over three decades.

Assembly elections 2022: The BJP will announce its first list of candidates today as the Budget Session will start on January 31, reports the Financial Express.

Financial news: “India’s recovery is on a solid path”, the UN said on Thursday reporting that the country recorded the highest estimated growth rate among the major economies last year. The report estimated India’s gross domestic product (GDP) would grow at 6.7 per cent this year and 6.1 per cent next year.

Pakistan

Taliban facing staffing issues: The Taliban have staffing issues and they are looking for help in Pakistan, claims a report in the Indian Express today. It added that Taliban, despite their new grip on power in Afghanistan, is facing an economic crisis and remain dependent on Pakistan.

Fourth worst passport in the world: The Pakistani passport has been ranked as the fourth worst for international travel for the third consecutive year, with visa-free or visa-on-arrival access to 31 destinations around the world, according to the Henley Passport Index 2022.

https://www.youtube.com/watch?v=-Pr1iPe1WPc

Bangladesh

Grave rights concerns dismissed: Bangladesh’s ruling Awami League government has dismissed concerns raised by the United Nations, donors, and non-governmental organizations over evidence of extrajudicial killings, torture, and enforced disappearances by security forces. The Human Rights Watch said in its World Report 2022 that Bangladesh had cracked down on activists, journalists, and even children who criticized the government and its response to the COVID-19 pandemic.

Bhutan

China constructing villages at disputed territory: China is constructing villages in disputed Bhutan territory, according to high-resolution satellite imagery that surfaced with the security establishments. Reports said the Chinese villages in Bhutan are likely to be used for both military and civilian purposes.

On a lighter note…

Brothers unite after 74 years: In a tearful reunion, two brothers who were separated during the India-Pakistan partition in 1947, reunited after 74 years. Watch the heart-warming video on https://bit.ly/3rggKFN

‘Unpaused: Naya Safar’ poster release: The motion poster of film ‘Unpaused: Naya Safar’, has been released followed by the trailer release on January 15.

Five filmmakers have come together to shape the anthology, which features an ensemble cast of Saqib Saleem, Shreya Dhanwanthary, Neena Kulkarni and Priyanshu Painyuli. It will be released on Amazon Prime Video on January 21.

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Sunak bookmakers’ favourite to be PM

Liz Truss is the second favourite at 22/5. The others in the running as per the betting opportunities are senior backbench MP Jeremy Hunt, who put up a good fight against Johnson in the Conservative party leadership contest in 2019, reports Ashis Ray

Rishi Sunak, the Indian-origin Chancellor of the Exchequer, is tipped as the bookmakers’ favourite to succeed the current incumbent Boris Johnson as Prime Minister of the United Kingdom.

The odds on Sunak are 9/4, according to Oddschecker, a comparison site compiling prices from leading British bookmakers.

Liz Truss, the present Foreign Secretary, is the second favourite at 22/5. The others in the running as per the betting opportunities are senior backbench MP and former foreign secretary Jeremy Hunt, who put up a good fight against Johnson in the Conservative party leadership contest in 2019. He is quoted at 11/1.

Sunak and Truss have been neck-and-neck for a while in public opinion surveys. On Wednesday, when Johnson tendered a conditional apology (because he apologised for the function, but not for his presence at it or for its illegality under prevailing legislation) in the House of Commons for his office holding a drinks party at his 10 Downing Street garden during the height of the Covid-19 lockdown in the UK in May 2020, Truss sat next to him, often nodding her head in support of the statement. On the other hand, the Chancellor was conspicuously absent from Parliament, 225 miles away from London in southwestern English county of Devon.

PM Boris Johnson during a press conference. (Picture Simon Dawson No 10)

Political commentators saw this as Sunak distancing himself from Johnson. In the evening he tweeted: “I’ve been on a visit all day today continuing work on out #PlanFor Jobs as well as meeting MPs to discuss the energy situation.” He added: “The PM was right to apologise and I support his request for patience while Sue Gray (a senior civil servant) carries out her enquiry.”

A YouGov poll carried out within hours of Johnson’s apology indicated 89 per cent of respondents did not accept his expression of contrition, while only 4 per cent supported it. The rest didn’t have an opinion.

Sunak is of East African Punjabi origin. His father has been a general practitioner and his mother a pharmacist in the southern English coastal city of Southampton since they migrated to Britain. He is also the son-in-law of N.R. Narayan Murthy, one of the founders of the software giant Infosys. He was educated at Winchester school, Oxford and Stanford Universities. An MP for less than seven years, his rise up the Conservative political ladder has been meteoric.

A powerful body within the Conservative parliamentary party known as the 1922 Committee has to receive 54 letters from its party’s MPs (out of around 365) to call for a leadership contest. As Johnson fights to save his political career, the big question is when will such a battle take place?

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