British Prime Minister Rishi Sunak is facing a watchdog inquiry under his parliamentary declaration of interest obligations related to a Budget policy that could benefit his wife, Akshata Murty, through her business interest in a childcare firm, it emerged on Monday.

The inquiry has been opened by the UK’s Parliamentary Commissioner for Standards, an independent officer of the House of Commons in charge of looking at evidence if individual British members of Parliament are feared to have broken a rule under the ‘Code of Conduct’.

The active inquiries on the watchdog's list include one opened on Sunak, 42, last Thursday under Paragraph 6 of the rules of conduct, as Downing Street said ministerial interests were "transparently declared".

“Members must always be open and frank in declaring any relevant interest in any proceeding of the House or its Committees, and in any communications with Ministers, Members, public officials or public office holders,” states Paragraph 6.

According to the BBC, the inquiry relates to the British Indian leader's wife's interest in Koru Kids Ltd, which is likely to benefit from a new pilot scheme announced in the Spring Budget last month to incentivise people to become childminders.

Akshata Murty, the daughter of Infosys co-founder Narayana Murthy, is listed on the UK’s Companies House register as a shareholder in Koru Kids – one of six childminder agencies in England listed on the government's website with contact details.

The Opposition had flagged this fact last month and called for further explanations at a hearing of the Liaison Committee – made up of all House of Commons committee chairs. Labour MP Catherine McKinnell had asked Sunak if he had any interest to declare in relation to the new childcare policy.

"No, all my disclosures are declared in the normal way," he said at the time.

Now the parliamentary watchdog’s investigation will decide if there has been any breach of the code, which can then be put before MPs sitting on the Committee on Standards – which is responsible for deciding any sanctions.

"We are happy to assist the Commissioner to clarify how this has been transparently declared as a ministerial interest," a Downing Street spokesperson said.

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