UK Trade Negotiations Raise Concerns Over Minister’s Wife’s Financial Interests
Negotiations surrounding the UK’s trade deals have sparked concerns over the financial interests of the Minister’s wife. Rishi Sunak, Britain’s Chancellor of the Exchequer, has come under scrutiny for potential conflicts of interest related to his wife’s financial holdings. Akshata Murthy, Sunak’s wife, is the daughter of Narayana Murthy, founder of Indian tech giant Infosys.
The Labour Party and the chair of the House of Commons business and trade select committee have called for Sunak to be more transparent about his wife’s financial interests, suggesting that Infosys could benefit from any trade agreement signed with India. The committee chair, Darren Jones, even recommended that Prime Minister Boris Johnson recuse himself from the trade negotiations due to the potential conflicts of interest.
This latest development follows the resignation of former culture secretary Nadine Dorries, who had been critical of Sunak. Amidst these concerns, Sunak is scheduled to attend the G20 Summit in Delhi, where he is expected to discuss the UK-India trade negotiations with his Indian counterpart, Narendra Modi.
The UK parliamentary watchdog recently released a report stating that Sunak had inadvertently failed to declare his wife’s shares in childminding firm Koru Kids, which stood to benefit from the government’s budget policy. Sunak apologized for this oversight and stated that it arose from confusion. Despite the apology, questions continue to be raised regarding the potential conflicts of interest.
It is worth noting that a significant portion of Akshata Murthy and Sunak’s wealth comes from Infosys, which was valued at around $63 billion (£50 billion) in May. Concerns have been raised over whether the trade negotiations could be influenced by the desire of Infosys to improve access to the UK for its contract workers through changes in the visa regime.
In the midst of these concerns, the Foreign, Commonwealth and Development Office (FCDO) has advised against the Business and Trade Select Committee conducting a trip to India in the coming months to examine issues related to the potential trade deal. This advice was given due to the sensitivity of the ongoing negotiations.
Despite the controversy, the UK Shadow trade secretary, Nick Thomas-Symonds, expressed his party’s support for a trade deal with India. However, he stressed the importance of Sunak being transparent about any relevant business links and his role in the negotiations to avoid conflicts of interest.
Economist Alan Manning from the London School of Economics suggested that India would naturally seek opportunities for growth in trade deals, particularly in the software services sector. Manning also recommended that Prime Minister Johnson recuse himself from negotiations regarding immigration, given his potential financial interest through his family.
Reports indicate that if the UK is willing to reduce workers’ taxes, India may agree to cut tariffs on Scotch whisky and British cars and parts by at least a third. India has also expressed interest in signing a social security agreement similar to those already in place with other countries, such as Canada, Australia, and France. Such an agreement would exempt Indian workers from making social security contributions in the UK if they continue to pay in India.
Trade Secretary Kemi Badenoch recently held bilateral talks with her Indian counterpart, Piyush Goyal, during a visit to India for a G20 trade meet. Goyal emphasized the need for further momentum in the India-UK trade negotiations to achieve a mutually beneficial deal.
As the discussions continue, it is crucial for Sunak and the UK government to address concerns over potential conflicts of interest and ensure transparency throughout the trade negotiations. Only then can the UK and India work towards a trade deal that benefits both nations.
