Nadhim Zahawi: Rishi Sunak orders investigation into Tory party chairman amid calls to sack him over tax row
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.”
Politics live: Zahawi told to quit – amid ‘clear evidence’ TV interview defence was ‘not true’
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.
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.
Mr Zahawi said he was “clearly being smeared” over questions about his affairs – and that he did not “benefit” from an “offshore trust”.
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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.
“And yet he denied that to you.”
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Mr Neidle said there could be “an innocent explanation” for Mr Zahawi’s tax error, which the Tory MP called “careless not deliberate”.
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
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.
The Americans were given the full VIP treatment on their visit to Moscow.
There was a motorcade from the airport, lunch at a Michelin-starred restaurant, and even a stroll around Red Square.
It felt like Steve Witkoff and Jared Kushner were on more of a tourist trail than the path to peace.
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Trump’s envoys walk around Moscow
They finally got down to business in the Kremlin more than six hours after arriving in Russia. And by that point, it was already clear that the one thing they had come to Moscow for wasn’t on offer: Russia’s agreement to their latest peace plan.
According to Vladimir Putin, it’s all Europe’s fault. While his guests were having lunch, he was busy accusing Ukraine’s allies of blocking the peace process by imposing demands that are unacceptable to Russia.
The Europeans, of course, would say it’s the other way round.
But where there was hostility to Europe, only hospitality to the Americans – part of Russia’s strategy to distance the US from its NATO allies, and bring them back to Moscow’s side.
Vladimir Putin and Steve Witkoff shaking hands in August. AP file pic
Putin thinks he’s winning…
Russia wants to return to the 28-point plan that caved in to its demands. And it believes it has the right to because of what’s happening on the battlefield.
It’s no coincidence that on the eve of the US delegation’s visit to Moscow, Russia announced the apparent capture of Pokrovsk, a key strategic target in the Donetsk region.
It was a message designed to assert Russian dominance, and by extension, reinforce its demands rather than dilute them.
Read more:
Michael Clarke answers your Ukraine war questions
‘Thousands’ of Westerners applying to live in Russia
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‘Everyone must be on this side of peace’
…and believes US-Russian interests are aligned
The other reason I think Vladimir Putin doesn’t feel the need to compromise is because he believes Moscow and Washington want the same thing: closer US-Russia relations, which can only come after the war is over.
It’s easy to see why. Time and again in this process, the US has defaulted to a position that favours Moscow. The way these negotiations are being conducted is merely the latest example.
With Kyiv, the Americans force the Ukrainians to come to them – first in Geneva, then Florida.
As for Moscow, it’s the other way around. Witkoff is happy to make the long overnight journey, and then endure the long wait ahead of any audience with Putin.
It all gives the impression that when it comes to Russia, the US prefers to placate rather than pressure.
According to the Kremlin, both Russia and the US have agreed not to disclose the details of yesterday’s talks in Moscow.
I doubt Volodymyr Zelenskyy is filled with hope.
FIFA has backed away from using dynamic pricing for all 2026 World Cup tickets amid concerns about the cost of attending the tournament in North America.
The organisers insisted they always planned to ring-fence tickets at set prices to follow your own team.
But the announcement comes just days ahead of Friday’s tournament draw in Washington DC, which Donald Trump plans to attend.
Fans will have to wait until Saturday to know exactly where and when their teams will be playing in next summer’s tournament.
Scotland will be one of the teams in the tournament, held in North America and Mexico
Variable pricing – fluctuating based on demand – has never been used at a World Cup before, raising concerns about affordability.
England and Scotland fans have been sharing images in recent days of ticket website images highlighting cost worries.
But world football’s governing body said in a statement to Sky News: “FIFA can confirm ringfenced allocations are being set aside for specific fan categories, as has been the case at previous FIFA World Cups. These allocations will be set at a fixed price for the duration of the next ticket sales phase.
“The ringfenced allocations include tickets reserved for supporters of the Participating Member Associations (PMAs), who will be allocated 8% of the tickets for each match in which they take part, including all conditional knockout stage matches.”
FIFA says the cheapest tickets are from $60 (£45) in the group stage. But the most expensive tickets for the final are $6,730 (£5,094).
There will also be a sales window after the draw from 11 December to 13 January when ticket applications will be based on a fixed price for those buying in the random selection draw.
It is the biggest World Cup with 104 matches after the event was expanded from 32 to 48 teams. There are also three host nations for the first time – with Canada and Mexico the junior partners.
The tournament mascots as seen in Mexico in October. Pic: Reuters
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FIFA defended using fluctuating pricing.
“The pricing model adopted for FIFA World Cup 26 reflects the existing market practice for major entertainment and sporting events within our hosts on a daily basis, soccer included,” FIFA’s statement continued.
“This is also a reflection of the treatment of the secondary market for tickets, which has a distinct legal treatment than in many other parts of the world. We are focused on ensuring fair access to our game for existing but also prospective fans.”
The statement addressed the concerns being raised about fans being priced out of attending.
FIFA said: “Stadium category maps do not reflect the number of tickets available in a given category but rather present default seating locations.
“FIFA resale fees are aligned with North American industry trends across various sports and entertainment sectors.”
Ireland, Northern Ireland and Wales could also still qualify.
The Americans were given the full VIP treatment on their visit to Moscow.
There was a motorcade from the airport, lunch at a Michelin-starred restaurant, and even a stroll around Red Square.
It felt like Steve Witkoff and Jared Kushner were on more of a tourist trail than the path to peace.
Please use Chrome browser for a more accessible video player
Trump’s envoys walk around Moscow
They finally got down to business in the Kremlin more than six hours after arriving in Russia. And by that point, it was already clear that the one thing they had come to Moscow for wasn’t on offer: Russia’s agreement to their latest peace plan.
According to Vladimir Putin, it’s all Europe’s fault. While his guests were having lunch, he was busy accusing Ukraine’s allies of blocking the peace process by imposing demands that are unacceptable to Russia.
The Europeans, of course, would say it’s the other way round.
But where there was hostility to Europe, only hospitality to the Americans – part of Russia’s strategy to distance the US from its NATO allies, and bring them back to Moscow’s side.
Vladimir Putin and Steve Witkoff shaking hands in August. AP file pic
Putin thinks he’s winning…
Russia wants to return to the 28-point plan that caved in to its demands. And it believes it has the right to because of what’s happening on the battlefield.
It’s no coincidence that on the eve of the US delegation’s visit to Moscow, Russia announced the apparent capture of Pokrovsk, a key strategic target in the Donetsk region.
It was a message designed to assert Russian dominance, and by extension, reinforce its demands rather than dilute them.
Read more:
Michael Clarke answers your Ukraine war questions
‘Thousands’ of Westerners applying to live in Russia
Please use Chrome browser for a more accessible video player
‘Everyone must be on this side of peace’
…and believes US-Russian interests are aligned
The other reason I think Vladimir Putin doesn’t feel the need to compromise is because he believes Moscow and Washington want the same thing: closer US-Russia relations, which can only come after the war is over.
It’s easy to see why. Time and again in this process, the US has defaulted to a position that favours Moscow. The way these negotiations are being conducted is merely the latest example.
With Kyiv, the Americans force the Ukrainians to come to them – first in Geneva, then Florida.
As for Moscow, it’s the other way around. Witkoff is happy to make the long overnight journey, and then endure the long wait ahead of any audience with Putin.
It all gives the impression that when it comes to Russia, the US prefers to placate rather than pressure.
According to the Kremlin, both Russia and the US have agreed not to disclose the details of yesterday’s talks in Moscow.
I doubt Volodymyr Zelenskyy is filled with hope.
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