Kwasi Kwarteng has insisted Rishi Sunak’s millionaire wife, Akshata Murthy, is not "sheltering" from tax after it emerged she holds non-domicile status for UK tax purposes.
The Business Secretary said people will "draw their own conclusions" about the tax arrangement but stressed "there is no hint of any wrongdoing at all".
Asked during an interview on the BBC if Ms Murthy was "sheltering" herself from tax, Mr Kwarteng said: “I don’t think that is true at all. Sheltering sounds as if you are evading things.
"I think she has been very clear, I think she has been very transparent, the Chancellor has been very transparent and this non-dom status has been part of the UK tax system for more than 200 years.”
Ms Murthy, the daughter of the billionaire Indian businessman Narayana Murthy, held “non-dom” tax status as recently as April last year, while her husband was Chancellor of the Exchequer.
The designation allows Ms Murthy to avoid paying tax on foreign investments and overseas rental income, and to avoid inheritance tax entirely.
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The cost of living crisis and the publication of today's Energy Security Strategy have prompted renewed scrutiny of the Government's pledge to hit net zero emissions by 2050.
But Kwasi Kwarteng, the Business Secretary, said the Government remains firmly committed to reducing emissions in line with legal commitments.
He told Sky News: “Not at all. I think that the net zero legislation, it is after all in law, is still the law of the land, we are focused on that.
“But of course, given what is happening around the world, given the pressure on energy prices, we are also doing lots of other things to make sure that we get energy independence back into the UK.
“We want to have a security of supply, we want to live in a world where we are not dependent on what Russian policy is, where we have more control over energy sources here in Britain and that is what the strategy is all about.”
The Government is today unveiling its new Energy Security Strategy as Boris Johnson backs a major expansion in nuclear, wind and solar power to end the UK's dependence on Russian oil and gas. (You can read the overnight story on what is being announced here).
Critics have expressed concerns that the document will not bring down spiking energy bills in the short term.
Kwasi Kwarteng, the Business and Energy Secretary, today suggested households may have to wait for up to five years for the strategy to make a difference on bills.
Asked when people will see the difference, he told Sky News: “You are absolutely right. I mean in terms of people’s energy bills, people’s energy bills this year, we have announced a number of measures, a £9.1billion package, £150 off council tax for people in bands A to D, £200 to pay those bills.
“And of course you are right to say that the strategy is more of a medium term, three, four, five year answer.
“But that doesn't mean we can't address this. I think it is really important that we get an energy strategy and energy policy that means that we can have more security and independence in the years ahead.”
Ed Miliband, Labour's shadow climate change and net zero secretary, told Sky News that there are “legitimate questions that need to be asked of Rishi Sunak" about his wife's non-domicile status.
He said: “I think it is legal, but is it right? That is the question your viewers will be asking.
“They are facing a massive cost of living crisis, Rishi Sunak is the man who is charged with ensuring everyone pays their fair share of taxes and people will be asking is Rishi Sunak’s immediate family paying their fair share of taxes when they are not paying UK tax on such a substantial part of their income.”
Kwasi Kwarteng, the Business Secretary, was asked about the "optics" of households facing tax rises while the wife of the Chancellor holds non-domicile status.
He told Sky News: “So, I looked at her statement yesterday, she made it very clear that as an Indian national she can’t have dual citizenship and she has got a non-dom status here in the UK.
“Now, after 15 years staying here she will be domiciled but for the moment she pays tax on UK income, as I understand, and on foreign income she pays the tax outside the UK, that is what non-domicile status means.”
Pushed again on the "optics", Mr Kwarteng said: “People can reach, obviously, their own conclusions and that is up to viewers.
“All I have said is that he has made full declaration of what has happened. It is non-domicile status that is utterly legal, everything is completely in order, he has always been very transparent about these issues.”
Rishi Sunak, the Chancellor, last week said it was "very upsetting and, I think, wrong for people to try and come at my wife" as he said it was "totally fine for people to take shots" at him because he is an elected politician.
Kwasi Kwarteng this morning agreed with Mr Sunak's position as the Business Secretary said it is "completely unfair" to "attack" Akshata Murthy.
He told the BBC: “Look, I agree with him that it is completely unfair to be bringing someone who is not a politician and essentially attacking them in the way that is happening.
“I totally agree with him on that.”
Kwasi Kwarteng, the Business Secretary, is on the morning broadcast round for the Government and he has faced a series of questions about Akshata Murthy's "non-dom" status.
He told the BBC Breakfast programme: “People draw their own conclusions. I was very interested in the transparency. It was very clear to me what has happened. I think people have been very honest. The Chancellor has been very honest, very clear and she is after all a private citizen, she is not a politician and I think her affairs were completely transparent and as you say, there is no hint of any wrongdoing at all so everything was in order in that way.”
Asked if Ms Murthy was “sheltering” herself from tax, Mr Kwarteng said: “I don’t think that is true at all. Sheltering sounds as if you are evading things. I think she has been very clear, I think she has been very transparent, the Chancellor has been very transparent and this non-dom status has been part of the UK tax system for more than 200 years.”
Good morning and welcome to today's politics live blog.
There is a lot going on in Westminster this morning. I will guide you through the key developments.
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