Exclusive: Tory MPs Pile Pressure On Rishi Sunak To Ease The Cost Of Living Crisis

If Rishi Sunak had any doubts that the shine has gone off his reputation among Tory MPs, the last few weeks will have removed them entirely.

Once seen as Boris Johnson’s heir apparent, the chancellor saw his popularity nosedive recently over an underwhelming Spring Statement and revelations about his wife’s tax affairs.

HuffPost UK has learned that Sunak has been meeting with groups of Conservative backbenchers to get their views on how he should tackle the cost of living crisis, and they have not been holding back.

“He’s not the golden boy any more,” said an MP who attended one of those gatherings last Monday night. “There were around 30 of us and we gave him a hard time.”

Sunak’s answers to their forceful questions failed to assuage their anger.

“He came across as making excuses for the state of the economy,” one former cabinet minister told HuffPost UK. “The most wounding criticism was that it isn’t clear what the government’s economic policy is.

“Some people brought up the fact that at least David Cameron and George Osborne had their ‘long-term economic plan’ and it was consistent. If tough decisions had to be made, they were made in that context.

“What is this government’s economic policy? No one has any idea.”

This uncertainty is typified by the chancellor’s will-he-won’t-he approach to a windfall tax on the enormous profits currently being enjoyed by oil and gas companies.

Thanks to the global spike in energy prices, the likes of BP and Shell have posted astronomical earnings, leading to Labour and the Lib Dems calling for a one-off levy, with the money raised going towards cutting household bills.

The government’s response has been to criticise a windfall tax in principle, while being careful not to rule out bringing one in. This led to Tory MPs being forced to vote en masse against a windfall tax earlier this week, fully aware that the government may well end up backing the policy within days.

The confusion at the heart of government has even led to reports that two of the prime minister’s key advisers are making clear their opposition to a windfall tax at the same time as the Treasury appears to be laying the groundwork for one.

“We are all exploring every option available to grow the economy and ease the cost of living,” a senior Number 10 source told HuffPost UK. “It’s not the case of one lot advocating and another blocking.

“It’s just good government – testing the arguments, exploring the merits, getting the detail right and setting the bar high for doing something no Conservative instinctively wants to do.”

One former Conservative frontbencher said he had some sympathy for the chancellor.

“The problem for Rishi is that Tory MPs are all over the place on what they want done,” he said. “There’s not a consensus other than something needs to be done, and that makes his position very difficult.

“There are people who want a windfall tax and there are people that don’t want a windfall tax. Others want to see benefits uprated and others who want tax cuts.”

Asked what he thought Sunak would opt for, the MP said: “There’s going to be a windfall tax, that seems clear. But in the usual way, Tory MPs were marched up the hill to vote against it.”

The prime minister and chancellor are in discussions over how to tackle the rising cost of living.
The prime minister and chancellor are in discussions over how to tackle the rising cost of living.

UK Parliament/Jessica Taylor via PA Media

Another Conservative MP said he would reluctantly support a windfall tax, given the extent of the crisis facing household budgets.

He said: “The current situation doesn’t feel sustainable. The oil and gas companies are making enormous profits out of events that are completely out of their control. How can we be the only people defending them?

“If you look at what happened in the 90s, Labour went into the 1997 election promising to bring in a windfall tax and they won a landslide. If we do it, we instantly shoot Labour’s fox.

“You obviously can’t keep doing windfall taxes because they really do deter investment and harm business confidence, but there is a case for one now.

“If you look at our economic prospects, October looks horrific when the energy price cap goes up, and £150 council tax rebates just aren’t going to touch the sides.

“Government can’t solve every problem, but this is about protecting people from the worst of the cost of living crisis. I really think a windfall tax is going to happen.”

Another ex-minister said: “My sense from my conversations with colleagues is that while in principal they are against a windfall tax for exceptionally good reasons, the current circumstances, in which the energy companies are making massive profits, means the chancellor will probably go for one. He’s getting strong briefing that we should have one from the Treasury.”

But the MP warned the chancellor that the parliamentary party wants to see the tax burden – which is now the highest it’s been for 70 years – fall as quickly as possible.

“Tory MPs are getting fed up of being a high spend, big state party,” he said. “The definite sense of MPs and donors is that people are sick to death of not being a Conservative Party.”

On Wednesday night, Sunak told business leaders that he would use his next Budget in the autumn to cut their taxes, but he was silent on what immediate help he will provide for voters seeing their energy and food bills soaring.

The Treasury points to the £9bn-worth of support the chancellor announced in February to bring down council tax and fuel costs, while insisting that further support will come in October when the energy price cap is set to rise significantly once again.

But with two key by-elections coming in June, and Labour maintaining a consistent lead in the polls, Tory MPs are demanding action long before then. The big question now is what form that will take.

A Labour source said: “The cost of living crisis has drawn back the tide on an out of touch, dilettante chancellor.

“But Rishi Sunak is really just a symptom of the wider Tory malaise. This is a government out of ideas and rapidly running out of road – and after a decade of failing to grow the economy, all they’ve got left to offer is tax rise after tax rise on working people.”

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Labour To Force Vote On Emergency Budget As Inflation Hits ‘Worrying’ 40-Year High

Labour is set to force a vote on an emergency budget to help ease the cost of living crisis today after inflation hit a 40-year high.

Official figures showed the inflation rate increased to 9 per cent in the 12 months to April, up from 7 per cent in March.

Shadow chancellor Rachel Reeves said the announcement would be “a huge worry for families already stretched”.

It means the cost of living in the UK has increased at its fastest rate since 1982 as soaring energy bills put millions of households under pressure.

Reeves said: “We can’t wait any longer for action from this out of touch government.

“Today, Labour force a vote for an emergency budget and for a plan for growth. The Tories must back it.”

The figures, revealed by the Office for National Statistics (ONS) on Wednesday morning, will add to pressure faced by households to cut back on bills and everyday spending.

A large portion of the rise was due to the price cap on energy bills, which was hiked by 54 per cent for the average household at the start of the month.

Higher fuel and food prices, driven by the Ukraine war, are also pushing the cost of living up, with inflation expected to continue to rise this year.

Grant Fitzner, chief economist at the Office for National Statistics, said: “Inflation rose steeply in April, driven by the sharp climb in electricity and gas prices as the higher price cap came into effect.

“Around three-quarters of the increase in the annual rate this month came from utility bills.”

Chancellor Rishi Sunak said that inflation was hitting countries around the world and pointed to energy prices as a main culprit.

“We cannot protect people completely from these global challenges but are providing significant support where we can, and stand ready to take further action,” he said.

Lib Dem leader Ed Davey called for an emergency VAT cut to “slash prices” at the till and fuel pump.

“The warning lights are all flashing red and Boris Johnson hasn’t a second to lose,” he added.

Meanwhile, the British Chambers of Commerce warned that “unprecedented” inflation could spark a recession later in the year.

Think tank Resolution Foundation said the government “must” provide further targeted support for lower income families at the “sharp end” of the crisis.

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‘He’s In Trouble’: Have Rishi Sunak’s Tax Controversies Ended His Leadership Hopes?

At his peak, Rishi Sunak was the most popular politician in the country.

It was a reputation forged after the “crisis chancellor” rose to the challenge of the Covid pandemic — splashing billions on furlough and business support and later the “eat out to help out” scheme to keep the hospitality sector afloat.

Now, the image of Sunak as a sympathetic chancellor who is in touch with the needs of ordinary people appears to be in tatters — and the same could be said of his ambitions to succeed Boris Johnson as prime minister.

Although she was forced into a screeching U-turn on Friday night, the damage to her husband’s reputation was already done.

Meanwhile, the chancellor himself was also hit by claims in the Independent that he has been listed as a beneficiary of tax haven trusts linked to Murty in the British Virgin Islands and Cayman Islands.

Pat McFadden, Labour’s shadow chief secretary to the Treasury, said the allegations were “extremely serious”.

“We need full transparency about this and the other stories about the chancellor emerging over the past 24 hours,” he said.

Murty always paid UK tax on any income she earned here, but under the non-dom arrangement, domestic rates did not apply to the vast majority of her foreign wealth, derived from her stake in her father’s Indian company Infosys.

It reinforced the already damaging perception that it’s “one rule for them, one for the rest of us”.

Reports suggest that Murty’s non-dom status, which is perfectly legal, may have allowed her to avoid millions in tax.

Given the fact that her husband has just increased national insurance contributions for working people during the worst cost-of-living crisis in decades, the timing of the revelations could hardly have been worse.

Following Murty’s U-turn, one Labour insider said: “Rishi Sunak has realised that being a total hypocrite doesn’t wash with the British public.”

One former minister admitted to HuffPost UK that the stories emerging about Sunak had put him in “a lot of trouble”.

“It looks like a coordinated campaign and that there will be more to come. Also, there’s not much support being expressed for him publicly.”

Discussing the chancellor’s leadership prospects a few weeks ago, one senior Tory backbencher said that while they liked Sunak, he was not a “political operator” like the foreign secretary, Liz Truss, and questioned whether he had any allies in the Conservative party.

“Who are his allies? I don’t know who they are.”

<img class="img-sized__img landscape" loading="lazy" alt="Chancellor of the Exchequer Rishi Sunak alongside his wife Akshata Murthy.” width=”720″ height=”553″ src=”https://www.wellnessmaster.com/wp-content/uploads/2022/04/hes-in-trouble-have-rishi-sunaks-tax-controversies-ended-his-leadership-hopes-3.jpg”>
Chancellor of the Exchequer Rishi Sunak alongside his wife Akshata Murthy.

Ian West via PA Wire/PA Images

Another Conservative said that while the chancellor may be feeling the pain now, it was only just the beginning.

“Everyone is talking about the cost of living,” one Labour source said.

“It’s a massive issue. Rising bills, rising taxes, the cost of food and fuel — the cost of petrol is in the minds of most people you speak to. They can tell you the price they last paid to the half penny.

“The Tories are of course making the chancellor the scapegoat: rule number one in the current Tory party is protect Johnson.

“But voters don’t seem to blame Sunak when you speak to them. They blame the government.

“They know there’s a stink but it’s from a steady and constant flow not from one single burst pipe.”

Sunak was quick to defend Murty’s tax’s affairs, launching a spirited defence of his wife in an interview with the Sun on Thursday evening.

He claimed the couple were the victim of “unpleasant smears” and that those responsible were wrong to target her as a “private citizen”.

“She has had her own career,” he said. “She has her own investments and is paying the taxes that she owes in the UK.

“She is 100 per cent doing everything this country asks of her.”

Some of Sunak’s colleagues rallied to his defence, also suspecting he is the victim of an orchestrated campaign to undermine his credibility.

Alec Shelbrooke, who represents a constituency in Yorkshire, said it was “disgraceful that the chancellor’s wife should change her life, just because of her husband’s job”.

“She hasn’t done anything illegal, she has followed the law, but people are trying to say she should be subservient to her husband’s choices — any feminist attacking her, needs to find a dictionary.

“It’s nasty politics at all levels and its fundamentally sexist. The people attacking are, at best, confused on feminism and inconsistent on tax policy.

“Good smear campaign for them, but vacuous politics.

“Rishi has my full support.”

Another backbencher said: “I think this is quite smeary — Labour looked at non-dom when they were in power and decided to keep it with a fee, which we then jacked up when we were in charge.

But they added: “Notwithstanding that, it’s still politically damaging for him.”

<img class="img-sized__img landscape" loading="lazy" alt="Rishi Sunak places an "eat out to help out" sticker in the window of a business during a visit to Rothesay on the Isle of Bute, Scotland.” width=”720″ height=”479″ src=”https://www.wellnessmaster.com/wp-content/uploads/2022/04/hes-in-trouble-have-rishi-sunaks-tax-controversies-ended-his-leadership-hopes-4.jpg”>
Rishi Sunak places an “eat out to help out” sticker in the window of a business during a visit to Rothesay on the Isle of Bute, Scotland.

Jeff J Mitchell – PA Images via Getty Images

What is also worrying for Sunak is the confirmation that he held a US green card for the first 18 months of his role as chancellor.

Green card holders must pay US tax on their worldwide income and declare the US as their permanent residence.

The Liberal Democrats have demanded that the cabinet secretary, Simon Case, open an investigation into the claims and whether Sunak broke the ministerial code.

Sunak’s spokeswoman said: “Upon his first trip to the US in a government capacity as chancellor, he discussed the appropriate course of action with the US authorities,” she said.

“At that point it was considered best to return his green card, which he did immediately.

“All laws and rules have been followed and full taxes have been paid where required in the duration he held his green card.”

For some Tories this is where the real danger lies.

Asked whether the constant drip of revelations meant it was all over for Sunak, one former Cabinet minister said: “For his leadership ambitions, certainly, and probably for his current job. The green card stuff is incredible.”

A backbencher added: “Not over non-dom, but if this green card stuff is true, then I expect it is over for him. Probably even as an MP.”

At a press conference on Friday, the prime minister was repeatedly dogged by questions on Sunak’s tax affairs.

Asked whether he was behind the briefings, the prime minister said: “If there are such briefings they are not coming from us in No 10 and heaven knows where they are coming from.”

“I think that Rishi is doing an absolutely outstanding job.”

The question now is whether Sunak can make that case himself to a weary, cash-strapped public who are feeling the pinch like never before.

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Rishi Sunak’s Wife Now Says She Will Pay UK Taxes On Overseas Income

Chancellor Rishi Sunak’s wife, Akshata Murty, has moved to end the controversy around her financial status by saying she will now pay UK taxes on all her overseas income.

Murty is estimated to be worth hundreds of millions of pounds, and the “non-dom” status exempted her from paying tax in the UK on foreign income.

Some reports suggested the fashion-designer daughter of a billionaire potentially avoided up to £20 million in UK tax.

In a statement, Murty said she did not want her non-dom status to be a “distraction” for her husband.

“For this reason, I will no longer be claiming the remittance basis for tax,” she said.

“This means I will now pay UK tax on an arising basis on all my worldwide income, including dividends and capital gains, wherever in the world that income arises.

“I do this because I want to, not because the rules require me to.

“These new arrangements will begin immediately and will also be applied to the tax year just finished.”

Earlier, Sunak faced further embarrassment after he admitted holding a US green card while chancellor, amid demands he “come clean” about his finances.

And the chancellor was also hit by claims in the Independent that he has been listed as a beneficiary of tax haven trusts linked to Murty in the British Virgin Islands and Cayman Islands.

In response, a spokeswoman close to the Sunak family said: “No-one in Akshata’s family is aware of this alleged trust.”

Murty confirmed she holds non-dom status after the Independent website revealed the arrangement on the day a national insurance hike hit millions of workers.

Sunak said his wife was entitled to use the non-dom arrangement as she is an Indian citizen and plans to move back to her home country to care for her parents.

He insisted she is not attempting to pay less tax, saying “the dates don’t make a difference”.

Murty is reported to hold a 0.91% stake in Infosys, an IT business founded by her father, and has received £11.6 million in dividends from the Indian firm in the past year.

Non-dom status means she would not have to pay UK tax at a rate of 39.35% on dividends. India sets the rate for non-residents at 20%, but this can fall to 10% for those who are eligible to benefit from the UK’s tax treaty with India.

Public records show Infosys has received more than £50 million in UK public sector contracts since 2015.

Murty pays an annual levy of £30,000 to the UK government to keep her non-dom status, her spokeswoman said.

Earlier, a spokeswoman for Sunak released a statement confirming that he held a green card while chancellor until seeking guidance ahead of his first US trip in a government capacity, in October last year.

The US inland revenue says anyone who has a green card is treated as a “lawful permanent resident” and is considered a “US tax resident for US income tax purposes”.

The spokeswoman said Sunak continued to file US tax returns, “but specifically as a non-resident, in full compliance with the law”, having obtained a green card when he lived and worked in the States.

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Rishi Sunak Hits Out At ‘Smear’ Over Wife’s Non-Dom Controversy – But Its Not Clear Who To Blame

Rishi Sunak has defended his wife after it emerged she holds the tax-reducing non-domiciled status – but who is to blame for the leak appears to depend on the newspaper you read, as a Westminster briefing war was in full swing.

The chancellor said his spouse Akshata Murty – who is estimated to be worth hundreds of millions of pounds – had done nothing wrong in choosing a financial arrangement that means she is not legally obliged to pay tax in Britain on foreign income.

He blamed Labour for the “awful” smears against his family.

Sunak told The Sun newspaper that Murty was entitled to use the so-called “non-dom” arrangement as she is an Indian citizen and plans to move back to her home country to care for her parents.

The fashion-designer daughter of a billionaire married the chancellor in 2009 before he became an MP.

But there were other reports his allies have accused No. 10 of being responsible for the briefings.

The Telegraph reported that unnamed allies of the chancellor claimed the prime minister’s office were behind the leaks – an allegation No 10 and No 11 strongly denied.

A No 10 spokeswoman told the PA news agency: “It is categorically untrue that No 10 is behind the briefings.

“The prime minister and chancellor are united.”

The Times carried briefings claiming Sunak was the victim of a “political hit job” and a “co-ordinated attack”.

“He thinks it’s a total smear,” one ally said. “It feels like there’s a full-time briefing operation against him. This is a hit job, a political hit job. Someone is trying to undermine his credibility.”

A well as weighing up the Labour vs No. 10 claims, the paper revealed Sunak had told only a few people in government about his wife’s tax status – and that included senior officials at his former berth the housing ministry, as well as the Treasury and the Cabinet Office.

Murty is reported to hold a 0.91% stake in Infosys, an IT business founded by her father, with The Guardian reporting that the share is worth £11.5 million per year to Sunak’s wife.

The paper also reportedMurty had potentially avoided up to £20 million in UK tax by being non-domiciled.

With Murty born in India and her father also from the south Asian country, UK government rules allow her to list India, rather than the UK, as her permanent residence, meaning different tax rules on foreign earnings apply.

The chancellor said it was “unpleasant” to read attacks on his wife “especially when she hasn’t done anything wrong”.

“She hasn’t broken any rules. She’s followed the letter of the law,” Sunak told The Sun.

The chancellor said his partner “pays full UK tax on every penny that she earns here in the same way that she pays full international tax on every penny that she earns internationally”.

Asked during the interview whether he thought his family were victims of a “Labour smear campaign”, Sunak said he did.

But Labour hit back, with a party source telling PA: “The chancellor would do better to look a little closer to home.

“It’s clear that No 10 are the ones briefing against Rishi Sunak and, after his failure to tackle the cost-of-living crisis, you can understand why.”

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12 Key Questions For Rishi Sunak Over His Wife’s Non-Dom Status

Chancellor Rishi Sunak is under fire after it was revealed his wife has “non-dom” status.

It means Akshata Murthy, daughter of an Indian billionaire, can earn money from abroad free of UK tax.

A non-domiciled tax status is designed for individuals whose permanent home is not the UK.

Murthy, who lives in Downing Street with her husband, said she has the status because of her Indian citizenship as the country does not allow its citizens to hold dual nationality.

However, some experts argue there are ways she can remain an Indian citizen while ending her non-dom status.

There is no suggestion any laws or rules have been broken, however Labour leader Sir Keir Starmer has described the arrangement as appearing to represent “breathtaking hypocrisy”.

A Treasury spokesman has insisted that Sunak has “followed the ministerial code to the letter in his declaration of interests”.

The code states that, on appointment to each new office, ministers must provide their permanent secretary with a full list of all interests which might be thought to give rise to a conflict – including the interests of their spouse, partner or close family.

Labour is arguing that her non-domicile status is a matter of public interest because the chancellor may have directly benefitted from it.

They have written to Sunak with 12 questions, they include:

1. How much have you benefited from Murthy’s tax status as a ‘non-dom’?

2. Has Murthy ever claimed the remittance basis?

3. Do you accept that claiming the remittance basis was an active choice by Murthy, and not [as her spokesperson claimed yesterday] something that followed automatically from her citizenship?

4. What is Murthy’s claimed domicile?

5. On what basis is it not the UK, given her life suggests she intends to permanently remain in the UK?

6. For how long has Murthy been claiming the remittance basis? Companies House filings say Murthy has been living in the UK since at least 2013.

7. How much tax has been saved by claiming the remittance basis?

8. Where are all of Murthy’s non-UK income and gains fully taxed?

9. Does Murthy hold investments/property through trusts or companies in offshore jurisdictions?

10. When Murthy hits 15 years of being in the UK, she will cease to be entitled to claim the remittance basis. Often the wealthy avoid the resultant tax by putting their assets into trusts before the expiry of the 15 years. Will she commit not to do that?

11. Do you as chancellor support the claim of Murthy’s spokesperson that her Indian citizenship means she must be treated as non-domiciled for UK tax purposes?

12. What measures have you as chancellor put in place to ensure that you are not involved in Treasury discussions around potential amendments to the non-domicile status rules?

A Treasury spokesperson has not responded to a HuffPost UK request for a response to the questions.

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Embarrassment For Rishi Sunak As Wife’s Non-Dom Tax Status Is Revealed

Rishi Sunak’s wife has non-domicile status, allowing her to avoid paying UK taxes on her overseas earnings.

In a major embarrassment for the chancellor, a spokesperson for Akshata Murty confirmed the arrangement, saying it was a result of her Indian citizenship.

“India does not allow its citizens to hold the citizenship of another country simultaneously,” the spokesperson said.

“So, according to British law, Ms Murty is treated as non-domiciled for UK tax purposes. She has always and will continue to pay UK taxes on all her UK income.”

She has a stake in her billionaire father’s IT services company Infosys, from which she receives a multi-million pound annual dividend.

Labour called on Sunak to reveal how much UK tax Murty’s non-dom status has allowed her to avoid, amid reports that it could run into the millions of pounds.

Tulip Siddiq, shadow economic secretary to the Treasury, said: “The chancellor has imposed tax hike after tax hike on the British people. It is staggering that – at the same time – his family may have been benefitting from tax reduction schemes.

“This is yet another example of the Tories thinking it is one rule for them, another for everyone else.

“Rishi Sunak must now urgently explain how much he and his family have saved on their own tax bill at the same time he was putting taxes up for millions of working families and choosing to leave them £2,620 a year worse off.”

It is understood Sunak declared his wife’s tax status to the Cabinet Office when he first became a minister in 2018.

It is not the first time that Murty’s financial arrangements have been called into question in recent days.

Last week, Keir Starmer urged the chancellor to “come clean” about any links his wife’s family business has with Vladimir Putin.

The Labour leader said it would be wrong for the chancellor’s household to be “benefiting” from any money coming from Russia while the government is imposing sanctions on its regime.

Sunak, who has urged companies to pull out of the country in order to squeeze the Russian economy, has said his wife should not be subjected to political attacks.

The chancellor’s personal popularity has taken a nosedive in recent weeks as the cost of living crisis bites.

Although he cut fuel duty by 5p and raised the threshold at which workers start paying national insurance, he has been accused of failing to do enough to tackle soaring energy bills.

Meanwhile, millions of workers and their employers are braced for a 1.25 percentage point hike in the national insurance bills.

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What Is An NFT? Rishi Sunak Asks Royal Mint To Create A Non-Fungible Token

Chancellor Rishi Sunak has asked the Royal Mint to create a non-fungible token (NFT) which is to be issued by the summer, the Treasury said on Monday.

Critics immediately seized on the move towards a UK state-backed NFT as an example of the government being “out of touch” as the cost of living crisis puts the squeeze on households.

So what is an NFT, and why are they so controversial?

What is an NFT?

NFT stands for non-fungible token.

Things that are fungible can be swapped for an asset of the exact same type and value – traditional currencies such as the pound work like this.

When something is non-fungible, it cannot be changed this way because it is unique. Think of it like a famous painting – there will only be one original, no matter how many copies are made.

An NFT is a distinct cryptographic token that cannot be replicated, which acts as a certificate of ownership for virtual items.

What is the point?

Supporters view NFTs as the next phase in art collection, and they have exploded in popularity in recent years – with NFT artworks selling for millions of dollars.

Physical works of art and other rare memorabilia have long been sold for large sums of money but if you create something digitally it is hard to make gains.

So NFT offers a chance for artists in the internet age to make some money by selling ownership to anyone who wants it.

Selling a digital asset does not mean the original creator loses copyright either, unless it is explicitly stated as part of the sale.

Of course, this does not stop the image being easily copied by anyone online, but an NFT provides someone the honour of knowing they “own” the original image.

An NFT exists on a blockchain – a record of transactions kept on networked computers that serves as a public record allowing anyone to verify its authenticity and who owns it.

As with any blockchain system, records cannot be forged or divided, as they are logged on computers around the world that are part of the network.

What kind of NFTs exist?

All kinds of digital objects – images, videos, music, text and even tweets – can be bought and sold as NFTs.

Digital art has seen some of the most high-profile sales, while in sport, fans can collect and trade NFTs relating to a particular player or team.

NFTs can also be patches of land in virtual world environments, digital clothing, or exclusive use of a cryptocurrency wallet name.

Christie’s became the first major auction house to offer a purely digital work with NFT, selling artist Beeple’s creations for £50.5 million worth of Ether cryptocurrency.

The first tweet from Twitter boss Jack Dorsey – “just setting up my twttr” – sold for $2.9 million (£2.2 million) as an NFT in March last year.

Last month, Liverpool FC became the latest high-profile sports team to get involved with digital assets – announcing the “LFC Heroes Club” will give fans the opportunity to purchase animated, cartoon-style digital artwork of 23 players and manager Jurgen Klopp. All 20 clubs in the Premier League are reportedly exploring the possibility of launching NFTs.

<img class="img-sized__img landscape" loading="lazy" alt="Undated digital artwork issued by Liverpool Football Club of The LFC Heroes Club collection, featuring llustrations of 24 of the male squad, bringing their "individual and superhero characteristics to life".” width=”720″ height=”405″ src=”https://www.wellnessmaster.com/wp-content/uploads/2022/04/what-is-an-nft-rishi-sunak-asks-royal-mint-to-create-a-non-fungible-token-2.jpg”>
Undated digital artwork issued by Liverpool Football Club of The LFC Heroes Club collection, featuring llustrations of 24 of the male squad, bringing their “individual and superhero characteristics to life”.

LFC via PA Media

Why have NFTs surged?

Some attribute the frenzy to lockdowns, which forced people to spend more time at home on the internet.

NFTs are seen as a way to have possessions in online and virtual environments, which can communicate social status and personal taste. For some people, it is the digital equivalent of buying an expensive pair of sneakers.

For others, the lure lies in rapidly rising prices and the prospect of big returns. Some buyers “flip” NFTs, selling them on within a few days or even hours for profit.

What do critics make of it?

Like cryptocurrencies, NFTs are largely unregulated. Anybody can create and sell an NFT and there is no guarantee of its value. Losses can stack up if the hype dies down.

In a market where many participants use pseudonyms, fraud and scams are also a risk.

Given the huge number of computers needed to continuously run for a blockchain to function, there is also the environmental cost to consider.

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Rishi Sunak Faces Backlash For Dabbling In Fashionable NFTs During Cost Of Living Crisis

Chancellor Rishi Sunak has faced criticism for joining the controversial NFT trend as the UK faces the biggest cost of living crisis in generations.

On Monday, the Treasury announced the Royal Mint had been asked to create an NFT – a non-fungible token – by the summer as part of a drive to make the UK a “global crypto asset hub”.

An NFT is a digital asset that exists on a blockchain – a record of transactions kept on networked computers that serves as a public record allowing anyone to verify its authenticity and who owns it.

While most digital items can be endlessly reproduced, each NFT has a unique digital signature – meaning it is one of a kind.

Anyone can view the NFT, but only the buyer has the status of being the official owner – a kind of digital bragging rights.

EXPLAINED: WHAT IS AN NFT?

The “Bored Ape” collection of digital images is perhaps the most well-known, having been bought and traded by celebrities for tens of thousands of dollars.

Critics point to the lack of regulation of the NFT market, where many participants use pseudonyms and fraud and scams are a big risk.

The move into state-backed NFTs comes as Sunak is facing criticism for not doing enough to help British households who are facing the biggest fall in living standards since the 1950s, and spiralling energy bills that mean many people are having to choose between heating and eating.

Sunak’s reputation – a Tory leadership favourite when handing out furlough cash, now flagging amid questions about, among other things, his wife’s business links to Russia – has also been tarnished by reports he is set to spend the easter parliamentary recess in California.

Unsurprisingly, the reaction on social media was not especially positive.

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Tories Heckled As MPs Flock To Boris Johnson-Hosted Dinner On Day Partygate Fines Issued

Tory ministers arriving at Boris Johnson-hosted dinner were heckled by bereaved Covid families – on the same day police confirmed 20 fines will be issued over gatherings held across Whitehall.

Shouts of “shame on you” and “off to another party are we?” were reportedly heard amid as Conservative MPs arrived at a luxury central London hotel for what was billed as a “team-building” event.

Chancellor Rishi Sunak, levelling up secretary Michael Gove and opportunities minister Jacob Rees-Mogg were among those to arrive at the Park Plaza near Westminster Bridge shortly before 8pm on Tuesday.

Dozens of grief-stricken relatives who lost loved ones during the pandemic lined up outside the entrance to boo guests as they arrived in cars and on foot.

Labour MP Chris Bryant, who chairs parliament’s committee on standards, said: “The more I think about the PM hosting a Westminster party for MPs on the anniversary of the Covid memorial and in the face of the 20 partygate fines for breaking the law at No 10, the more I realise the Tories are laughing at us all. They must think we’re stupid.”

Earlier, the Metropolitan Police confirmed ‘partygate’ investigators will begin handing out 20 fines over gatherings held across Whitehall during Covid measures.

There was a heavy police presence surrounding the hotel and the prime minister is thought to have gained access to the building through a different entrance.

No.10 said on Tuesday if Johnson is among those to receive a fine for attending parties in Downing Street it will let voters know.

June Newbon, who lost her husband to the virus, branded the evening “disgusting” in light of the Met’s conclusion that it believes laws were broken at the heart of government.

She said holding a lavish dinner was especially inappropriate given the cost-of-living crisis hitting millions of people and the war in Ukraine.

“I think it’s disgusting,” she told the PA news agency outside the hotel.

“No-one else can afford to do this given the prices going up, and the war as well.”

Newbon and her daughter Ellie said Conservative politicians would be better placed attending the candlelit procession to mark the first anniversary of the National Covid Memorial Wall, a planned event near the hotel on Westminster Bridge.

Hundreds of bereaved relatives turned up to the walk on Tuesday to commemorate their loved ones and call for the mural to be made permanent.

“I think someone should make their presence known down at the bridge today instead,” Newbon said.

“I think that’s the respect they owe us,” her daughter added.

“We haven’t had an apology from Boris and I don’t feel we’re going to have one tonight.”

Downing Street has denied Johnson misled parliament over the goings-on in Whitehall during the pandemic.

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