Nadhim Zahawi: Labour calls on PM to dismiss Tory chairman amid tax dispute claims and slams ‘motley crew of scandal-ridden ministers’
Labour has called on Rishi Sunak to dismiss Nadhim Zahawi from his cabinet after questions over the Tory chairman’s tax affairs remain unanswered.
Questions have swirled following an article in The Sun on Sunday, which claimed a seven-figure payment was made by Mr Zahawi to end a dispute with the taxman “after scrutiny of his family’s financial affairs”.
The paper alleged there were questions over his use of an offshore company – a Gibraltar-registered family trust called Balshore Investments – to hold shares in the polling firm YouGov.
Mr Zahawi has previously denied he was a beneficiary of Balshore Investments.
HMRC is facing pressure to reveal whether Mr Zahawi paid a penalty to the tax office and Labour has written to the government department arguing the “public requires answers” over the matter.
After the Guardian newspaper earlier on Friday reiterated the allegation that Mr Zahawi agreed to pay a penalty to HMRC as part of a seven-figure settlement, Labour’s deputy leader Angela Rayner has called for him to be “dismissed”.
“Rishi Sunak promised a government of integrity, professionalism, and accountability but instead he’s propping up a motley crew of scandal-ridden ministers,” she said in a statement.
“Nadhim Zahawi’s story doesn’t add up.
“The position of the man who was until recently in charge of the UK’s tax system and who this prime minister appointed Conservative Party Chair is now untenable.
“It’s time for Rishi Sunak to put his money where his mouth is and dismiss Nadhim Zahawi from his cabinet.”
Mr Zahawi was seen going into Number 10 Downing Street on Friday and did not respond when asked by Sky News political correspondent Rob Powell if he had been honest about his tax affairs.
‘The public requires answers’
Sky News has made a number of approaches to the Tory MP and his team to clarify the situation around the payment to HMRC, but he has still not revealed if the report is accurate.
Instead, we received a broader comment from the MP’s spokesperson, who said his tax affairs “were and are fully up to date and are paid in the UK”, adding: “He has always said that he will answer any questions from HMRC as he always has done.”
HMRC has said it does not comment on individual cases, but Labour deputy leader Ms Rayner said “given the public interest” in the case “the public requires answers”.
She claimed: “In particular, there appears to be an element of special treatment directed towards Nadhim Zahawi by HMRC.”
Zahawi’s responses to tax dispute claims carefully worded
Questions about Nadhim Zahawi’s financial affairs followed him through his relatively short-lived campaign to become prime minister last summer.
The allegations centre on his links to a Gibraltar-based trust ‘Balshore Investments Limited’, of which his father Hareth Zahawi is a director.
Nadhim Zahawi has said that neither he nor his wife benefit from this trust.
However, when he founded the polling firm YouGov in May 2000, the trust was allocated shares in the company equalling the number given to Mr Zahawi’s co-founder Stephan Shakespeare.
After digging through pages of documents, the accountant and tax campaigner Dan Neidle has suggested there would have been a tax saving of several million pounds when these shares were sold because they were held by an offshore trust.
It’s this figure the Guardian is suggesting is at the centre of the reported repayment to HMRC.
Nadhim Zahawi’s responses to these stories have always been very specific and carefully worded.
After these latest accusations, a spokesperson for the Tory chairman said he “does not recognise these numbers” and has “never sought legal advice for dealing with HMRC”.
They also insisted Mr Zahawi’s taxes were up to date and fully paid in the UK.
Sources have briefed that Dan Neidle – who is a Labour member – is a “labour activist” and the allegations are merely taken from his “blog”.
One of Mr Zahawi’s more outspoken interventions came during the Number 10 leadership race in July last year though, when he said he was the victim of a “smear” over his financial affairs
That statement puts the cabinet minister in a difficult spot if concrete evidence emerges that he has repaid money to HMRC and potentially even been issued with a penalty.
The timing of any investigation or settlement could be important as well, given Mr Zahawi was briefly chancellor last year.
Ms Rayner called on HMRC to explain the nature of the payment and whether the former chancellor “has admitted fault or incurred financial penalties as part of his settlement”.
A spokesman for Mr Zahawi has said his taxes are “properly declared” and he “has never had to instruct any lawyers to deal with HMRC on his behalf”.
“As we have repeatedly said, Nadhim’s taxes are up to date and are fully paid in the UK. Mr Zahawi does not recognise these numbers and he has never sought legal advice for dealing with HMRC,” the spokesman said.
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Zahawi asked if he settled with HMRC
PM ‘has full confidence’ in Zahawi
Mr Sunak defended his colleague at Prime Minister’s Questions (PMQs) on Wednesday, saying Mr Zahawi “has already addressed this matter in full and there’s nothing more that I can add”.
Downing Street was pressed for more information during a press briefing on Friday.
Asked if any concerns had been raised about Mr Zahawi’s taxes before Mr Sunak made him party chair, the prime minister’s official spokesman said he was not aware of any “specific” conversations.
Before entering politics, Mr Zahawi co-founded YouGov and is thought to have a net worth of around £100m.
Questions over his tax affairs have been raised before – namely ahead of his short tenure as chancellor in the closing days of Boris Johnson’s premiership.
The Observer claimed civil servants in the Cabinet Office’s propriety and ethics team alerted the prime minister to an HMRC “flag” over Mr Zahawi before his appointment, but Mr Johnson went ahead “despite the possible concerns over his tax affairs”.
The minister claimed he was “clearly being smeared” in his campaign to become Conservative Party leader, telling Sky News he had “always” paid his taxes and had “declared” them in the UK.
Donald Trump has agreed to send “top of the line weapons” to NATO to support Ukraine – and threatened Russia with “severe” tariffs if it doesn’t agree to end the war.
Speaking with NATO secretary general Mark Rutte during a meeting at the White House, the US president said: “We’ve made a deal today where we are going to be sending them weapons, and they’re going to be paying for them.
“This is billions of dollars worth of military equipment which is going to be purchased from the United States,” he added, “going to NATO, and that’s going to be quickly distributed to the battlefield.”
Weapons being sent include surface-to-air Patriot missile systems and batteries, which Ukraine has asked for to defend itself from Russian air strikes.
Pic: Reuters
Mr Trump also said he was “very unhappy” with Russia, and threatened “severe tariffs” of “about 100%” if there isn’t a deal to end the war in Ukraine within 50 days.
The White House added that the US would put “secondary sanctions” on countries that buy oil from Russia if an agreement was not reached.
It comes after weeks of frustration from Mr Trump against Vladimir Putin’s refusal to agree to an end to the conflict, with the Russian leader telling the US president he would “not back down” from Moscow’s goals in Ukraine at the start of the month.
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Trump says Putin ‘talks nice and then bombs everybody’
During the briefing on Monday, Mr Trump said he had held calls with Mr Putin where he would think “that was a nice phone call,” but then “missiles are launched into Kyiv or some other city, and that happens three or four times”.
“I don’t want to say he’s an assassin, but he’s a tough guy,” he added.
Earlier this year, Mr Trump told Ukrainian leader Volodymyr Zelenskyy “you’re gambling with World War Three” in a fiery White House meeting, and suggested Ukraine started the war against Russia as he sought to negotiate an end to the conflict.
After Mr Trump’s briefing, Russian senator Konstantin Kosachev said on Telegram: “If this is all that Trump had in mind to say about Ukraine today, then all the steam has gone out.”
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Meanwhile, Mr Zelenskyy met with US special envoy Keith Kellogg in Kyiv, where they “discussed the path to peace” by “strengthening Ukraine’s air defence, joint production, and procurement of defence weapons in collaboration with Europe”.
He thanked both the envoy for the visit and Mr Trump “for the important signals of support and the positive decisions for both our countries”.
At least 30 people have been killed in the Syrian city of Sweida in clashes between local military groups and tribes, according to Syria’s interior ministry.
Officials say initial figures suggest around 100 people have also been injured in the city, where the Druze faith is one of the major religious groups.
The interior ministry said its forces will directly intervene to resolve the conflict, which the Reuters news agency said involved fighting between Druze gunmen and Bedouin Sunni tribes.
It marks the latest episode of sectarian violence in Syria, where fears among minority groups have increased since Islamist-led rebels toppled President Bashar al Assad in December, installing their own government and security forces.
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In March, Sky’s Stuart Ramsay described escalating violence within Syria
The violence reportedly erupted after a wave of kidnappings, including the abduction of a Druze merchant on Friday on the highway linking Damascus to Sweida.
Last April, Sunni militia clashed with armed Druze residents of Jaramana, southeast of Damascus, and fighting later spread to another district near the capital.
But this is the first time the fighting has been reported inside the city of Sweida itself, the provincial capital of the mostly Druze province.
The Syrian Observatory for Human Rights (SOHR) reports the fighting was centred in the Maqwas neighbourhood east of Sweida and villages on the western and northern outskirts of the city.
It adds that Syria’s Ministry of Defence has deployed military convoys to the area.
Western nations, including the US and UK, have been increasingly moving towards normalising relations with Syria.
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UK aims to build relationship with Syria
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Concerns among minority groups have intensified following the killing of hundreds of Alawites in March, in apparent retaliation for an earlier attack carried out by Assad loyalists.
That was the deadliest sectarian flare-up in years in Syria, where a 14-year civil war ended with Assad fleeing to Russia after his government was overthrown by rebel forces.
The city of Sweida is in southern Syria, about 24 miles (38km) north of the border with Jordan.
The man convicted of the murder of British student Meredith Kercher has been charged with sexual assault against an ex-girlfriend.
Rudy Guede, 38, was the only person who was definitively convicted of the murder of 21-year-old Ms Kercher in Perugia, Italy, back in 2007.
He will be standing trial again in November after an ex-girlfriend filed a police report in the summer of 2023 accusing Guede of mistreatment, personal injury and sexual violence.
Guede, from the Ivory Coast, was released from prison for the murder of Leeds University student Ms Kercher in 2021, after having served about 13 years of a 16-year sentence.
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Since last year – when this investigation was still ongoing – Guede has been under a “special surveillance” regime, Sky News understands, meaning he was banned from having any contact with the woman behind the sexual assault allegations, including via social media, and had to inform police any time he left his city of residence, Viterbo, as ruled by a Rome court.
Guede has been serving a restraining order and fitted with an electronic ankle tag.
The Kercher murder case, in the university city of Perugia, was the subject of international attention.
Ms Kercher, a 21-year-old British exchange student, was found murdered in the flat she shared with her American roommate, Amanda Knox.
The Briton’s throat had been cut and she had been stabbed 47 times.
(L-R) Raffaele Sollecito, Meredith Kercher and Amanda Knox. File pic: AP
Ms Knox and her then-boyfriend, Raffaele Sollecito, were placed under suspicion.
Both were initially convicted of murder, but Italy’s highest court overturned their convictions, acquitting them in 2015.
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