New chancellor Rishi Sunak challenged by Labour over ‘questionable’ hedge fund past

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Labour has demanded that new chancellor Rishi Sunak provides more information about his ‘questionable’ career as a City hedge fund manager before he entered politics.

Sunak was promoted to replace Sajid Javid in the wake of the former chancellor’s dramatic resignation earlier this week where he had refused to sack his political aides. However, Labour state that the new chancellor must now answer questions over his past career and ‘dodgy’ business dealings.

Shadow councillor John McDonnell said Sunak’s former close associate Patrick Degorce had participated in a multimillion-pound tax avoidance scheme. Both had worked for the Children’s Investment Fund Management, which McDonnell claims not only has links to companies in the Cayman Islands but also used illegal tax havens.

Degorce was also the founder of Theleme Partners, a hedge fund which Sunak helped form in 2009. Degorce was subsequently ordered to repay £8m in tax after he was found to have used a tax avoidance scheme.

However, a source close to the Treasury said that the Conservatives would not take lectures from the Labour party who are stuck playing political games rather than listening to what the public wants. They added that the new chancellor is focused on delivering the promises made to the British public.

As former chief secretary to the Treasury, Sunak had been the key minister responsible for gathering budget submissions from Whitehall departments.

As Euro Weekly News understands, Sunak had previously warned several departments that the Treasury had to remain within strict limits and spoken about the importance of spending rules.

Speaking at an event held by the rightwing Centre for Policy Studies thinktank at a Tory party conference in October, he said: “We’ve got to a place where borrowing is under control so its right to invest in what people care about.”

However, economists predict that the new chancellor may now change approach to please Boris Johnson.

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Isha Sesay