Rogue landlord: Labour MP ‘highlights need for transparency on second jobs’

Safety concerns surrounding nurseries and rental properties linked to a Labour MP have sparked calls for greater transparency about politicians' financial interests.

The comments come as I revealed a series of safety concerns at nurseries run by a company founded by Labour MP Jas Athwal.

All of these nurseries had recently been criticised by Ofsted, the government's education inspectorate, for failing to comply with child safety regulations. In one case there was a “significant incident relating to the supervision of children” and in another a “welfare notice” was served for failing to comply with child protection regulations.

The nurseries have now taken action to address the problems and are currently rated ‘good’ by Ofsted.

These latest revelations raise new questions about the transparency of MPs' business interests and secondary income. Despite the government's promise to crack down on MPs taking on second jobs, sitting politicians can still earn significant sums as landlords or through investments.

Alex Parsons, senior researcher at the nonprofit MySociety, said I that the case shows the need for greater transparency regarding Members' financial declarations.

Mr Parsons said: “Ideally, MPs should not have any conflicts of interest – but the bare minimum is that the public can understand them. When MPs make declarations of interests, they should not only be careful to be technically compliant, but also to embrace the spirit of transparency.”

Mr Athwal does not declare any income from the nursery in the House of Commons Register of Interests. Companies House records show that before his election as an MP, his wife had received £165,000 in dividends from Village Day since 2020, paid through a company she owns.

Until last month, Mr Athwal was described in Companies House records as one of the people who had “significant influence” over Village Day Nurseries, but that changed in August when companies owned by his wife and business partner took control. Mr Athwal and his wife have declined to comment on Ofsted's interventions.

A Labour Party spokeswoman confirmed that in addition to security concerns, entries in the Companies Register and the House of Commons Register of Interests would also have to be corrected.

A Labour Party spokesman confirmed that the MP was a director of Village Day, but said he had not been a shareholder in the company since 2017 and that the details filed with Companies House and its Register of Interests in the House of Commons were incorrect.

They confirmed that his wife is a significant shareholder in Village Day through another company, although she, like her husband, is presumably not involved in the day-to-day operations of the daycare centers.

In recent weeks, Sir Keir Starmer has come under increasing scrutiny over his financial interests and those of his government.

Starmer's use of free gifts, including box seats to Arsenal matches and tickets to Taylor Swift concerts, has been criticised, with former Conservative politician Ruth Davidson saying he accepted gifts “over and over again”.

Meanwhile, the Athwal saga has also led to criticism of the party leadership in the left wing of the Labour Party, as the controversial MP continues to retain the confidence of the party.

The decision to support Athwal is controversial after several left-wing MPs were suspended in July for voting against the cap on the two-child allowance.

Momentum, the campaign group organised by many Labour leftists, said in a statement it was a “farce” that Athwal “remains a Labour MP while MPs like Zarah Sultana, John McDonnell and Apsana Begum do not have the strength to vote to repeal the two-child reform. [benefit] Cap.”

Andrew Fisher, who previously served as director of policy for former Labour leader Jeremy Corbyn and writes columns for Ialso criticised Sir Keir Starmer’s handling of the party leadership, citing Mr Athwal as an example.

Mr Fisher said: “It is a strange situation that the scandal-plagued Jas Athwal still holds the Labour Party's caucus confidence, but seven Labour MPs who voted to lift children out of poverty do not.”

MP Jas Athwal and the Labour Party were approached for comment.