- Rishi Sunak is fighting for his political future after damaging leaks about his family's tax arrangements.
- The chancellor was a favourite to take over for Boris Johnson, but those ambitions are now "done for," one MP said.
- Another senior Conservative suggested Sunak might have to resign or take a demotion over the row.
Rishi Sunak is fighting for his political survival after admitting he held a US green card for several months after becoming chancellor.
The man who just a few weeks ago was a favourite to replace Boris Johnson as prime minister now seems to be completely out of the race – and could even lose his existing role, Westminster sources suggested.
At a Downing Street press conference Friday, Johnson backed Sunak, saying he was doing an "absolutely outstanding job".
Amid suggestions that Sunak is the subject of a hostile briefing campaign, the prime minister said any briefings against the chancellor "certainly aren't coming from us at No 10."
"Heaven knows where they are coming from," Johnson added.
But Johnson also said he was unaware of Sunak's wife Akshata Murty's non-domicile tax status, as reported by The Independent this week.
This afternoon, it further emerged that Sunak held a green card until his first American trip after becoming chancellor in October 2021.
Sunak and Murty, who own a £5.5m Californian penthouse holiday home, continued to keep the green card tax status when they moved to the UK before Sunak was elected as MP for Richmond in North Yorkshire in 2015
A spokesperson said: "Rishi Sunak had a green card when he lived and worked in the US… Rishi Sunak followed all guidance and continued to file US tax returns, but specifically as a non-resident, in full compliance with the law.
"As required under US law and as advised, he continued to use his green card for travel purposes. Upon his first trip to the US in a government capacity as chancellor, he discussed the appropriate course of action with the US authorities. 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."
MPs told Insider his leadership hopes were now dead and suggested he may even have to resign.
"The fact the party has sat back and let everyone go to town on him just shows you - his stock has collapsed through the floor," said one senior Tory. "Nobody believes he can continue as chancellor - you can't put taxes up that don't affect your wife."
In a best-case scenario, Sunak would be moved to foreign secretary, paving the way for Liz Truss to become the first female chancellor, the MP said.
This would both "wind up" Labour and help undermine Truss' efforts to woo backbenchers as it would "put her in a position where she has to start saying 'no' to colleagues."
However, the same MP added: "Maybe he should resign."
Another Tory said the green card would make things "tricky" for Sunak.
"Attacks on wealth don't land, except with those already against him, and I'm not sure attacks on his wife will either. But it's obviously not good for him."
Another senior Conservative agreed. "He has a very shallow supporter base in the party – there are very few out defending him… He should have resigned in January and then he might have won.
"My guess is this, the spring statement, the petrol station farce, and cost of living have done for him."