Well, it’s not been a great week for Rishi Sunak, has it? There has been a lot said about his wife’s tax affairs, but one thing is for certain, they are not illegal. But does that make it all okay?

In my opinon it comes down to standards and how cabinet ministers set them. Sunak’s wife is the daughter of a billionaire. She utilises a tax loophole that means she is only liable to pay tax in the country where she has earned it. In this case India, via shares in her father’s business. We are talking millions.

On the face of it, one could argue (as some are) that it is unfair to pay tax on earnings more than once. However, what do we pay tax for? As I understand it, it is for use of public services. This could be for a new motorway, school classrooms or getting scraped off the road by the emergency services. We pay for those services in taxes, Sunak’s wife doesn’t. Is that fair?

Why is Sunak PM?

It’s not illegal but it is very handy for her and leads to the question, “Why is Rishi Sunak the chancellor?” He is a millionaire, and his wife is from a family of billionaires. Why on earth would he bother getting up in the morning for an MP’s salary? It might seem a good salary to us, but it is an amount that is barely noticeable to Sunak.

So, if it is not for the salary, what is it for? Is it for his love of the United Kingdom and the good working men and women in it? Or is it to have control over taxation systems and any disruption to the status quo that may compromise the family fortune? A good chancellor would be against non domicile status as it is a system that raises little or no funds. Blocking this loophole would be a good way to raise money for schools, hospitals, and other public services.

However, its not such an easy law to enforce when you are the chancellor, and your wife is the one exploiting the loophole. That’s the nuts and bolts of it and why Sunak is in political trouble. It has probably ended any hopes of him becoming PM, something that looked inevitable before the war in Ukraine saved Boris Johnson’s fat lying arse.

Johnson Joy

Talking of Johnson, you might think that he would be upset about his chancellor being in trouble. It’s probably more the case he doesn’t care. Johnson has learnt from previous leaders that surrounding yourself with political heavyweights will not keep you in power. It’s imbeciles that you need; particularly when you are as useless as Johnson. Sunak is the only barely competent cabinet minister Johnson has got, meaning he is the only genuine threat.

With Sunak out of the reckoning (and quite possibly a council elections scapegoat) Johnson can look around him and see no direct threat. He has a cabinet of untalented sycophants who know that no Johnson, means no cabinet role. Take a look at them and tell me which one of them is a man or woman of political nous. It may be a coincidence Johnson has ended up surrounded by a bunch of halfwits, but I doubt it.

Sunak got a good ride when he was the darling of Furlough. It was a scheme that save thousands of companies from going bust, but he also had no choice. Without it, the economy would have collapsed into oblivion. He only did what any chancellor of any political colour would have done. What he didn’t do, is safeguard it from abuse and £8 billion in written-off claims and loans.

Having a populist government is high risk in good times. In bad times, it is an unmitigated disaster.

Have a nice weekend.