Top story: Chancellor must ‘lead by example’
Good morning to you all, Graham Russell here with the news you need to end the week.
Akshata Murty, the chancellor’s wife, has potentially avoided up to £20m in UK tax by being non-domiciled, leading to Labour accusations of “breathtaking hypocrisy” against Rishi Sunak. The heiress has collected about 5.4bn Indian rupees (£54.5m) in dividends from Infosys, the India-based IT business founded by her father, over the past seven-and-a-half years, the period for which there is public data. Non-dom status for that whole period could have saved her about £20m in UK taxes.
The furore risks further damaging Sunak’s public image already battered by a mini-budget forecast to lead to the biggest drop in living standards since records began in the 1950s.
Labour wrote to Sunak, saying it was “in the vital public interest” that he provide clarity on issues including whether he had benefited from his wife’s status, how long she had claimed it and how much she had saved. “As chancellor it is crucial you both follow the rules and lead by example,” said James Murray, the shadow financial secretary.
Murty’s spokesperson initially characterised her tax status as a function of her Indian citizenship, but tax experts said non-dom status was not automatic but a choice. Prof Richard Murphy, who co-founded the Tax Justice Network, said the claim was “simply wrong. She is only non-domiciled because she asked to be so.”
Murty’s spokesperson said they had no comment on the £20m figure beyond reiterating she paid relevant taxes on UK and overseas incomes. They accepted that people with such tax arrangements could theoretically minimise payments using tax havens, while saying they had no comment as to whether Murty did this. Murty has previously collected other dividend income via the tax haven of Mauritius, which does not tax dividends.
If non-domicile tax status has not been a priority in your personal tax affairs, here is a handy guide to what it is. Also a guide to the wealth of a woman richer than the Queen.
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Ukraine – Kremlin spokesperson Dmitry Peskov has said Russia has suffered “significant” troop losses in its war against Ukraine, describing them as “a huge tragedy for us”. Volodymyr Zelenskiy has foreshadowed more atrocities, saying the situation in the town of Borodyanka was “much more disastrous” than in Bucha. A fresh offensive is expected in the east, and Kyiv has called for more heavy weaponry from its western allies and “ruinous” sanctions against Moscow, saying the assault on eastern Ukraine would remind Nato members of the second world war. Ukraine’s foreign minister, Dmytro Kuleba, told a meeting of his counterparts in the alliance in Brussels on Thursday: “I think the deal that Ukraine is offering is fair. You give us weapons, we sacrifice our lives, and the war is contained in Ukraine. This is it.” Benjamin Hall, a British reporter for Fox News, has said he feels “pretty damn lucky” to be alive after suffering serious injuries in a shelling in Kyiv in which two of his colleagues died.
Boris Johnson is set to host the German chancellor, Olaf Scholz, at Downing Street on Friday amid discussions on how to help Europe wean itself off Russian gas imports. You can find our at-a-glance guide here, and the latest events on our liveblog.
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Refugee education – Charity workers in Manchester say hundreds of children of asylum seekers and refugees are being taught in the car parks of hotels where they live because no school place has been found for them. Dr Rhetta Moran from charity Refugee and Asylum Participatory Action Research said: “Many of these children have been victims of war and persecution … and upon arrival they are faced with lengthy delays in our asylum and immigration system.” She said some lessons involved learning maths on the ground using chalk. Manchester city council said it had placed more than 400 such children in schools and colleges and that hotel staff were made aware of the need for families to apply for a school place.
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Stuck in the middle – Health authorities are urging people to ensure their waist size is less than half their height, amid rising concern about obesity rates. The National Institute for Health and Care Excellence makes the appeal today to adults with a body mass index (BMI) under 35 to help them stave off health problems and save a struggling NHS. By using the ratio together with BMI, people can work out whether they are carrying excess fat around their middle, which is known to raise the risk of type 2 diabetes, high blood pressure and heart disease.
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Justice for all – Ketanji Brown Jackson has navigated a rancorous US Senate approval process to become the first Black woman to serve in the supreme court in its more than 200-year history. At 51, Jackson is young enough to serve on the court for decades. Her ascension, however, will do little to tilt the ideological balance of the high court, dominated by a 6-3 conservative majority. But it does mean for the first time in the court’s history that white men are in the minority. Joe Biden called it “a historic moment for our nation. We’ve taken another step toward making our highest court reflect the diversity of America.” You can find more reaction here, plus analysis of the QAnon-tinged questioning she faced from some Republicans.
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Holiday rush – Passengers have been warned of delays as airlines and cross-Channel services brace for their busiest weekend since the start of the pandemic. Transport hubs are already struggling to cope with the Easter holiday surge and staff shortages brought on by Covid. Eurotunnel expects rising traffic in both directions and P&O Ferries services remain suspended. P&O rival DFDS is also now fully booked. Airports are redeploying office staff with security clearance to frontline roles and passengers have been advised to allow extra time. EasyJet, which had to axe hundreds of flights this week, said it would be pre-emptively cancelling a further 50 flights a day over the weekend to minimise disruption.
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Today in Focus podcast: The week the world woke up to Russian war crimes in Ukraine
After the rapid withdrawal of Russian forces from the suburbs around Kyiv, the full scale of the atrocities they had committed were exposed to the world this week. The Guardian’s Daniel Boffey was one of the first reporters to witness the scene of multiple war crimes in Bucha.
Lunchtime read: How Hillsong is facing a day of reckoning
Several years of scandals and a culture of secrecy has led to calls for an overhaul of the global Pentecostal megachurch. Here, Elle Hardy takes a look at whether it can function as a church rather than a brand after its recent troubles.
Sport
Tiger Woods says he is “right where I need to be” with a one-under-par round of 71 at the Masters after his remarkable recovery from serious injury. Woods commanded huge gallery support at Augusta National, having not played competitive golf since November 2020, and 14 months on from a serious car crash that left him fearing his lower right leg may need to be amputated. Amid signs of the old magic, there is more to come, writes Andy Bull.
Serena Williams has hinted that she will make her return to tennis at this year’s Wimbledon. She has not played professionally since last year’s event, where she withdrew early in her first-round match with a hamstring injury.
Emails have been released that appear to show the state of Abu Dhabi facilitating payments to Manchester City, reigniting the controversy that led to the club receiving a ban from European competition that was ultimately overturned at the court of arbitration for sport. City would not comment on the allegations but sources close to the club said the new reports were a continuation of an “orchestrated campaign” and part of “an endless attempt to damage us”.
Once his anger at Felix Zwayer’s officiating has faded, David Moyes will look back at West Ham’s draw against Lyon and conclude that their Europa League dream is far from over. It will stand West Ham in good stead when the quarter-final resumes at Stade de Gerland next week. In the Premier League, here are 10 things to look out for this weekend.
Business
Boris Johnson has been “held to ransom” by his backbenches after failing to back onshore windfarms in his energy plan, the shadow energy secretary, Ed Miliband, has said. Energy experts and environmental groups labelled the plan – which set targets for long-term expansion of nuclear, offshore wind and solar capacity – “inadequate”, warning it would do little to address sky-high bills and reduce dependence on gas imports, including from Russia. The energy crisis has seen customer service levels among providers plummet to their lowest since 2017.
The pound is buying $1.306 and €1.203.
The papers
The furore over the tax status of Akshata Murty, Rishi Sunak’s wife, continues on many front pages today. The Guardian says she may have avoided £20m in tax, while the Mirror reports she has benefited from £50m in UK public sector contracts. The Daily Mail gives its picture slot to Murty, reporting that she chose to be non-domiciled in the UK, but its main story is Sajid Javid talking about “women only” hospital wards.
The fightback is spearheaded by the broadsheets and the Sun. The Times focuses on Sunak’s concerns that the tax story was timed to coincide with his raising of national insurance contributions. “Sunak fears revelations over wife are ‘hit job’” is the headline. The Telegraph suggests that No 10 is briefing against Sunak (a suggestion Treasury sources have said in their view is “categorically not true”). The headline is: “Sunak allies claim No 10 undermining chancellor”. The tabloid claims an exclusive with the headline: “Lay off my missus”.
The i also claims an exclusive, reporting Sunak blocked plans to further ease the cost-of-living crisis. “Sunak vetoed extra help on energy bills” is the headline.
Metro has “human rights pariah” with news that Russia has been ejected from the UN’s human rights council. The FT also sticks with Vladimir Putin’s war on Ukraine, with the headline: “Rusal becomes first Russian group to call for Bucha war crime inquiry”.
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