UK finance minister wants to resign over criticism: Newspaper

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LONDON (Reuters) – British Finance Minister Rishi Chunak is considering resigning this week after criticizing his wealthy wife’s tax status, the Sunday Times reported.

“He was considering whether he could afford to have his family continue with this,” the newspaper said, citing unnamed sources.

However, a source familiar with the situation told Reuters that Sunak was not considering resigning.

Sunak has been under prolonged pressure this week since he became finance minister in 2020, after his wife, Akshata Murthy, confirmed his non-citizen tax status and did not tax his earnings outside the UK.

While the situation is legal, critics say Murthy’s situation does not fit with Sunak’s decision to raise taxes on workers and employers from April 6, at a time when high inflation is pressing on the cost of living for many British families.

Murthy is the daughter of one of the founders of Indian technology company Infosys and owns about 0.9% of the company, which earned her a dividend of 11. 11.6 million ($ 15.12 million) last year.

Chunak said on Friday that questions about his wife’s tax status were attempts to harm him politically.

After a few hours, Murthy said he would start paying British taxes on his income abroad.

The Sunday Times reports that some close to Sunak – who was once considered Britain’s future prime minister – still think he could stay out of politics.

Newspapers reported that Sunak’s family had moved out of a government house on Downing Street, raising speculation about his future. Despite that, the move was previously planned to reduce the distance to a school his daughters attend, according to reports.

On Saturday, the opposition Labor Party asked Sunak to respond to another newspaper report that he was listed as a beneficiary of foreign funds linked to his wife’s family’s business interests.

Sunak’s spokesman said neither Murthy nor Sunak’s family knew about the alleged funding.

On Friday, Sunak confirmed to media reports that after becoming Britain’s finance minister in 2020, he would only relinquish the US “green card” – immigration status for permanent U.S. residents.

Sunak’s spokesman said he had paid his taxes in full and had not violated any laws or regulations.