Rishi Sunak has ordered an investigation into Nadhim Zahawi as he resisted calls to sack the Tory party chairman over his multimillion-pound tax dispute.
The prime minister asked new ethics adviser Sir Laurie Magnus on Monday to assess whether the cabinet minister breached the ministerial code with the HMRC settlement he made while he was chancellor, but it could extend to his prior tax arrangement and whether he lied to the media.
Mr Sunak retained confidence in the former chancellor but said he was launching an investigation because “clearly in this case there are questions that need answering”.
He added that he was not leader at the time of the allegations and insisted the advice he received when he gave Mr Zahawi a senior role was there was “no reason” not to appoint him.
But Labour leader Sir Keir Starmer said: “He promised us, his first words, integrity and accountability.
“Well, if those words mean anything, the prime minister should sack him and sack him today and show some leadership.”
Scotland’s first minister, Nicola Sturgeon, has also said Mr Zahawi’s position is “untenable”.
Earlier, a source close to the embattled Tory MP said he is “absolutely not going to resign” in the face of growing pressure over his settlement, estimated to be around £5m.
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The government’s paymaster general, Jeremy Quin, told the Commons on Monday the process for the management of conflicts of interest, or potential conflicts, is “clear and robust”, however the PM has the ultimate say on appointments.
But he added: “It is a responsibility of all ministers to ensure that no conflict arises or could be reasonably perceived to arise between their role and their interests, financial or otherwise.”
The tax expert who investigated Mr Zahawi has joined calls for him to go, telling Sky News there is “clear evidence” he has not been truthful about his affairs.
Dan Neidle, the Founder of Tax Policy Associates and a Labour member, pointed to comments made by Mr Zahawi to Kay Burley last summer, while the then-chancellor was running to be leader of his party.
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Rishi Sunak has asked his independent ethics adviser to investigate Nadhim Zahawi
Speaking to Kay Burley on Monday, Mr Neidle said that a filing disclosure from YouGov – the polling company Mr Zahawi co-founded – showed he “received £99,000 from Balshore Investments”, a company based in Gibraltar.
Mr Neidle said: “That’s not my supposition or a guess – it’s absolute fact.
But he added: “I lack the imagination to see it and if there isn’t one, I think he should resign.”
What we still don’t know about Zahawi’s tax dispute
Image: Nadhim Zahawi did not answer questions when he arrived at Conservative Party headquarters on Monday
Questions about Mr Zahawi’s tax affairs have continued, even after he released a statement to “address some of the confusion about my finances”.
On Saturday he admitted he paid what HMRC said “was due” after it “disagreed about the exact allocation” of shares in YouGov.
But he did not disclose the size of the settlement – reported to be an estimated £4.8m including a 30% penalty – or whether he paid a fine.
Sky News understands he did pay a fine, and Mr Neidle said the use of the word “careless” confirms this.
He said “careless means something specific” in tax terms – “that you didn’t behave in a reasonable way”.
“A reasonable way is you instruct decent tax advisers. You tell them the truth, you follow their advice, you check your final tax returns as best you can.”
It is also not clear how much money Mr Zahawi made before settling the dispute.
Mr Neidle said: “I think he would have received about £27m and not paid tax on it until eventually he was forced to because it was being reported. He didn’t admit it, denied it, threatened to sue people and went to HMRC to quietly settle it.”
Mr Zahawi did not answer questions from reporters as he headed into the Conservative Party headquarters in Westminster earlier on Monday.
Donald Trump’s special envoy Steve Witkoff has met Vladimir Putin for talks in Russia – as the US president called on Moscow to “get moving” with ending the war in Ukraine.
Mr Witkoff, who has been pressing the Kremlin to accept a truce, visited Mr Putin in St Petersburg after earlier meeting the Russian leader’s international co-operation envoy Kirill Dmitriev.
Mr Putin was shown on state TV greeting Mr Witkoff at the city’s presidential library at the start of the latest discussions about the search for a peace deal on Ukraine.
Before Friday’s meeting, Kremlin spokesman Dmitry Peskov played down expectations of a breakthrough and told state media the visit would not be “momentous”.
However, Sky News Moscow correspondent Ivor Bennett said he believes the meeting – Mr Witkoff’s third with Mr Putin this year – is significant as a sign of the Trump administration’s “increasing frustration at the lack of progress on peace talks”.
Earlier on Friday, Mr Trump issued his latest social media statement on trying to end the war, writing on Truth Social: “Russia has to get moving. Too many people ere [sic] DYING, thousands a week, in a terrible and senseless war – A war that should have never happened, and wouldn’t have happened, if I were President!!!”
Dialogue between the USand Russia, aimed at agreeing a ceasefire ahead of a possible peace deal to end the war, has recently appeared to have stalled over disagreements around conditions for a full pause.
Image: Mr Trump, pictured at a cabinet meeting at the White House earlier this week, has called for Russia to ‘get moving’. Pic: AP
Secondary sanctions could be imposed on countries that buy Russian oil, Mr Trump has said, if he feels Moscow is dragging its feet on a deal.
Mr Putin has said he is ready in principle to agree a full ceasefire, but argues crucial conditions have yet to be agreed – and that what he calls the root causes of the war have yet to be addressed.
The Russian president wants to dismantle Ukraine as an independent, functioning state and has demanded Kyiv recognise Moscow’s annexation of Crimea and other partly occupied areas, and pull its forces out, as well as a pledge for Ukraine to never join NATO and for the size of its army to be limited.
Zelenskyy renews support calls after attack on home city
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Children killed in strike on Zelenskyy’s home town
Speaking online at a meeting of the so-called Ramstein group of about 50 nations that provide military support to Ukraine, named after a previous meeting at America’s Ramstein air base in Germany in 2022, Mr Zelenskyy said recent Russian attacks showed Moscow was not ready to accept and implement any realistic and effective peace proposals.
Mr Zelenskyy also made his evening address to the nation, saying: “Ukraine is not just asking – we are ready to buy appropriate additional systems.”
The UK’s defence secretary, John Healy, has said this is “the critical year” for Ukraine – and has confirmed £450m in funding for a military support package.
A family of five Spanish tourists, including three children, have been killed in a helicopter crash in New York City.
A New York City Hall spokesman identified two of those killed as Agustin Escobar, a Siemens executive, and Merce Camprubi Montal – believed to be his wife, NBC News reported.
The pilot was also killed as the aircraft crashed into the Hudson River at around 3.17pm on Thursday.
New York Police commissioner Jessica Tisch said divers had recovered all those on board from the helicopter, which was upside down in the water.
“Four victims were pronounced dead on scene and two more were removed to local area hospitals, where sadly both succumbed to their injuries,” she said.
Image: The helicopter was submerged upside down in the Hudson. Pic: Reuters
Image: A crane lifted out the wreckage on Thursday evening. Pic: AP
The Spanish president Pedro Sanchez called the news “devastating”.
“An unimaginable tragedy. I share the grief of the victims’ loved ones at this heartbreaking time,” he wrote on X.
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The aircraft was on a tourist flight of Manhattan, run by the New York Helicopters company.
Witnesses described seeing the main rotor blade flying off moments before it dropped out the sky.
Image: Agustin Escobar and Merce Camprubi Montal.
Pic: Facebook
Lesly Camacho, a worker at a restaurant along the river in Hoboken, said she saw the helicopter spinning uncontrollably before it slammed into the water.
“There was a bunch of smoke coming out. It was spinning pretty fast, and it landed in the water really hard,” she said.
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Witness saw ‘parts flying off’ helicopter
Another witness said “the chopper blade flew off”.
“I don’t know what happened to the tail, but it just straight up dropped,” Avi Rakesh told Sky’s US partner, NBC News.
Video on social media showed parts of the Bell 206 helicopter tumbling through the air and landing in the river.
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New York mayor confirms six dead
Image: The crash happened near Pier 40. Pic: AP
New York Mayor Eric Adams confirmed the six deaths and said authorities believed the tourists were from Spain.
He said the flight had taken off from a downtown heliport at around 3pm.
Image: Pic: Cover Images/AP
The crash happened close to Pier 40 and the Holland tunnel, which links lower Manhattan’s Tribeca neighbourhood with Jersey City to its west.
Tracking service Flight Radar 24 published what it said was the helicopter’s route, with the aircraft appearing to be in the sky for 15 minutes before the crash.
The Federal Aviation Administration and the National Transportation Safety Board have started an investigation.
A former ballerina who spent more than a year in a Russian jail for donating £40 to a charity supporting Ukraine has returned home to the US after being freed in a prisoner exchange.
Ksenia Karelina landed at Joint Base Andrews in Maryland at around 11pm, local time, on Thursday.
A smiling Ms Karelina was greeted on the runway by her fiance, the professional boxer Chris van Heerden, and given flowers by Morgan Ortagus, President Donald Trump’s deputy special envoy to the Middle East.
Image: Ksenia Karelina arrives at Joint Base Andrews. Pic: AP
Van Heerden said in a statement he was “overjoyed to hear that the love of my life, Ksenia Karelina, is on her way home from wrongful detention in Russia.
“She has endured a nightmare for 15 months and I cannot wait to hold her. Our dog, Boots, is also eagerly awaiting her return.”
He thanked Mr Trump and his envoys, as well as prominent public figures who had championed her case, including Dana White, a friend of Mr Trump and CEO of the Ultimate Fighting Championship (UFC).
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Ms Karelina, 34, a US-Russian citizen also identified as Ksenia Khavana, was accused of treason when she was arrested in Yekaterinburg, in southwestern Russia, while visiting family in February last year.
Investigators searched her mobile phone and found she made a $51.80 (£40) donation to Razom, a charity that provides aid to Ukraine, on the first day of Russia’s invasion in 2022.
She admitted the charge at a closed trial in the city in August last year and was later jailed for 12 years, to be served in a penal colony.
At a cabinet meeting on Thursday, Mr Trump, who wants to normalise relations with Moscow, said the Kremlin “released the young ballerina and she is now out, and that was good. So we appreciate that”.
Image: Ksenia Karelina is hugged by her boyfriend, Chris van Heerden. Pic: Reuters
Russian security services accused her of “proactively” collecting money for a Ukrainian organisation that was supplying gear to Kyiv’s forces.
The First Department, a Russian rights group, said the charges stemmed from a $51.80 donation to a US charity aiding Ukraine.
Washington, which had called her case “absolutely ludicrous”, released Arthur Petrov, who it was holding on charges of smuggling sensitive microelectronics to Russia, in the prisoner swap in Abu Dhabi.
Karelina was among a growing number of Americans arrested in Russia in recent years as tensions between Moscow and Washington spiked over the war in Ukraine.
Her release is the latest in a series of high-profile prisoner exchanges Russia and the US carried out in the last three years – and the second since Mr Trump took office.
White House national security adviser Mike Waltz said members of the Trump administration “continue to work around the clock to ensure Americans detained abroad are returned home to their families”.