Arrangement allows for investments to be retained at arm’s length, which critics say has potential for conflict of interest

Theresa May is facing questions about her financial interests after it emerged she set up a blind trust arrangement when she became prime minister.



Her use of a blind trust, disclosed in a recent Cabinet Office list of ministerial interests, allows her to hold on to shareholdings or other investments without disclosing what they are to the public.

It means she will have handed over control over shareholdings or other investments to a third party, who will look after the financial interests during her time in power.

However, she will still know what she put into the trust at the point of creation, which critics claim has the potential to create a conflict of interest.

Labour and the Lib Dems called for May to disclose the contents of the blind trust, saying she should have nothing to hide.

But No 10 refused to reveal what shareholdings or other investments had been put into the arrangement. It also would not disclose who had taken on responsibility for independently managing the trust.

“Blind trusts are a well-established mechanism for protecting ministers in the handling of their interests, as they are not involved in any decisions on the management, acquisition or disposal of items in the trust. She set it up when she became prime minister,” a No 10 spokeswoman said.

Asked why May did not have a blind trust when she was home secretary, the spokeswoman added: “The prime minister has a far wider set of public duties than the home secretary. Accordingly, the blind trust was established when she became prime minister.”

Andrew Gwynne, the shadow Cabinet Office minister, called for May to disclose what she had put into the blind trust in the interests of transparency.

“Not even six months in the job and Theresa May’s government is starting to be defined by its secrecy and complete lack of transparency,” he said. “If the prime minister has nothing to hide then she needs to reveal immediately where she has existing financial interests.”

Tim Farron, the Lib Dem leader, said he was sure that May had nothing to hide. But he added: “The public have legitimate questions about what companies the prime minister has invested in and who is running it.

“Theresa May promised the most transparent government in the world. This is an early test to see if her deeds match her words.”

Blind trusts have been at the heart of a number of political controversies over the years. Most recently, Donald Trump’s plans for a “blind trust” for his financial interests have been criticised as inadequate because the trust would be managed by his children.

Tony Blair’s use of a blind trust was heavily criticised by the Conservatives.

Under the last Labour government, the ministerial code was changed to remove a warning that the use of blind trusts would not necessarily avoid a conflict of interest.

The previous code stated: “It should also be remembered that even with a trust the minister could be assumed to know the contents of the portfolio for at least a period after its creation, so the protection a trust offers against a conflict of interest is not complete … In some cases, it may not be possible to devise such a mechanism to avoid actual or perceived conflict of interest.”

David Cameron sold his investments on becoming prime minister rather than creating a blind trust. However, blind trusts were used by many of his ministers, with at least 16 senior politicians keeping their interests in such schemes in 2011.