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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’

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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

Former chancellor Nadhim Zahawi arrives at the Conservative Party head office in Westminster, central London. The embattled Tory party chairman has been under pressure since it was reported that he paid HMRC a seven-figure sum to end a dispute, with Labour calling for him to be sacked. Picture date: Monday January 23, 2023.
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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.

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President Trump may walk away from Ukraine peace process, his eldest son says

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President Trump may walk away from Ukraine peace process, his eldest son says

Donald Trump’s eldest son has said his father may walk away from the Ukraine peace process, claiming the issue is not a priority for Americans, and signalling Europe needs a better plan.

In a wide-ranging discussion with Sky’s lead world news presenter Yalda Hakim at Doha Forum 2025, Donald Trump Jr addressed issues including the US administration’s recent diplomatic efforts around the world.

He was speaking in his capacity as a business leader, setting out his agenda for “America first” investments in defence technology and artificial intelligence (AI), drawing a direct line between global stability and economic prosperity.

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Donald Trump meeting Volodymyr Zelenskyy in Washington earlier this year. Pic: Reuters
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Donald Trump meeting Volodymyr Zelenskyy in Washington earlier this year. Pic: Reuters

When asked directly if he believed the US president would walk away from Ukraine, he answered: “I think he may, what’s good about my father and what’s unique about my father is you don’t know what he’s going to do. He’s unpredictable.”

President Trump has led renewed efforts for a ceasefire deal with Russia in recent months.

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Drawing a parallel with his father’s current “war” on drug cartels, Donald Trump Jr described gangs bringing illegal drugs into America as a “far greater clear and present danger to the US than anything [going on] in the Ukraine or Russia”.

While he said he did not believe Ukraine would be “abandoned”, he said: “The American public doesn’t have the appetite [for endless wars and further funding of Ukraine’s military efforts].”

Describing Ukraine as “a far more corrupt country than Russia”, he characterised Ukrainian President Zelenskyy as “one of the great marketeers of all time”, who he said had become “a borderline deity, especially to the left”.

He went on to describe President Trump’s approach as “common sense”.

China rivalry was the focus, but Musk got a mention


Yalda Hakim

Yalda Hakim

Lead world news presenter

@SkyYaldaHakim

In a country and at a conference which is friendly, even admiring of the Trump administration, Don Jr was in his element.

He’s here in his capacity as a business leader, promoting his venture, 1789 Capital which claims to be focused on “America First” investments.

But he wasn’t shy about discussing his father’s foreign policy achievements, boasting that Donald Trump had resolved seven or eight wars – conflicts that most ordinary Americans were unaware of.

His pitch is bullish and direct – the current US administration is projecting strength globally, stopping wars and creating investment opportunities which serves the American economy. It’s the MAGA mentality for the global audience.

It’s clear that the rivalry with China is their biggest focus, especially finding ways to combat their dominance over critical minerals.

“America can no longer just sit there and hope that China is going to be a good actor… I think the rest of the world understands that they want America to be at the forefront of all of that.”

When I asked him about recent efforts by President Trump to bring the war in Ukraine to an end, he responded forcefully. “We want peace, we want to stop the death.”

But he went on to say that Europe needed to shoulder the burden and currently they have no plan.

As he sat on the stage in Qatar, the country which has been at the centre of the ceasefire efforts for Gaza, he expressed hope that peace would prevail, but balanced expectations America would fund its re-construction. This would have to be a global effort.

“If there’s one thing my father is, it’s a builder… I think he can be the greatest construction manager in the history of the world, but no one in America wants to bear the entire responsibility of that.”

And, away from international diplomatic efforts, he was happy to announce a breakthrough closer to home.

The “bromance” with Elon Musk and President Trump is back on – calling the entrepreneur a “generational talent, a generational level of genius”.

‘Bromance’ back on

He also confirmed that Tesla billionaire Elon Musk was “100% back in the fold”, after previously appearing to fall out with the president.

Earlier this year, Donald Trump Jr’s investment company, 1789 Capital, heavily invested in some of Musk’s companies, including SpaceX.

Elon Musk and Donald Trump in the Oval Office at the White House in May. Pic: AP
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Elon Musk and Donald Trump in the Oval Office at the White House in May. Pic: AP

Directly comparing President Trump with Musk, he said: “Imagine dealing with one Donald Trump – now I have to deal with two.

“They’re very similar that way, so it created some headaches… but the reality is they’re both very much aligned, they’re on message with what we want to do with our country. What we want to do with freedom of speech.”

He went on: “Elon did incredible things for Twitter, really allowed the democratisation of truth and freedom and free speech to occur. That’s something that is a true threat in America right now.”

He also praised Musk as “changing the face of free speech, science and technology”, adding, “we have to protect our geniuses”.

When asked whether Mr Trump would stand for a third term, he joked that he could be “just trolling” those on the left.

He went on, “He’s the most unpredictable person, probably in the history of politics. Which is why he’s able to get something done. We’ll see.”

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Woman, 60, and young boy die in house fire

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Woman, 60, and young boy die in house fire

A murder investigation is underway after a woman and young boy died in a house fire in Edenderry, Co Offaly.

Another woman is being treated in hospital for her injuries following the blaze on Saturday at roughly 7.45pm.

Pic: PA
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Pic: PA

Pic: PA
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Pic: PA

Irish police said the house on Castleview Park had been declared a crime scene.

A Garda spokesperson said on Sunday morning that they could confirm two people had died as a result of the fire.

“A female, aged 60 years, and a young boy were fatally injured,” they said.

“A second female, aged in her 50s, is receiving treatment for serious injuries at a hospital in the Midlands.

Gardai in Tullamore are appealing for witnesses to come forward.

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Inside a secret, underground military base in eastern Ukraine

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Inside a secret, underground military base in eastern Ukraine

A hidden, underground military base in eastern Ukraine is so secret, soldiers change into civilian clothes whenever they step outside to avoid drawing attention.

Journalists are not usually allowed access.

But the unit that has been using this vast, subterranean warren of war rooms, a dormitory, kitchen, canteen and makeshift gym as its headquarters since the summer is imminently relocating, so Sky News was invited inside.

Lieutenant Colonel Arsen Dimitric – call sign Lemko – is the chief of staff of 1st Corps Azov of the National Guard of Ukraine, one of the country’s most effective combat forces.

Lemko
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Lemko

He sat with us in the base, next to a large square table, covered by a map of the Donbas region.

His soldiers have been fighting in this area since the summer, countering a surge in Russian attacks in and around the frontline city of Pokrovsk.

“We aim to destroy as much of the enemy as possible,” he said.

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“Will we take losses? Yes. Will it hurt? Absolutely.”

But he said if Russia is allowed to advance, even more Ukrainians will suffer.

“Their [the Russians’] only advantage is numbers,” he said.

“They don’t care how many people they lose.”

Lemko said almost 17,000 Russian soldiers had been killed or wounded fighting in this section of the warzone alone between August to November.

Read more:
Russia hits Ukraine with massive missile and drone attack

Ukrainian video footage of the battlefield showed Russian armoured vehicles being taken out by drones and artillery fire.

At one point, Russian soldiers mounted on motorbikes try to advance, only to be stopped by Ukrainian fire.

“Our task is to hit them as hard as possible in various areas,” Lemko said. “We focus on our operations, others on theirs, and leadership will negotiate the best possible terms.”

The Azov Corps soldiers are fighting over land that should be handed over to Russia, according to an initial draft of a peace deal proposal between Kyiv and Moscow put forward by the United States. This is despite swathes of the Donbas remaining under Ukrainian control.

But General Oleksandr Syrskyi, the head of the Ukrainian armed forces, has since told Sky News that simply surrendering territory would be “unacceptable”.

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Giving up territory ‘unacceptable’, Ukraine’s military chief says

For Lemko, he says the job of his troops is to inflict as much damage as possible on the Russian side to help strengthen Ukraine’s hand in negotiations.

“Simply giving it [land] away isn’t the way,” he said.

“Diplomats do their work, we do ours. Our job as soldiers is to give as many advantages as possible to our negotiating team. And we’re doing exactly that.”

Lemko, who has been battling against Russia since the Crimean annexation in 2014, also had a warning for the rest of Europe about a rise in hybrid attacks, such as mysterious drone sightings, acts of sabotage and cyber hacks suspected of being linked to Moscow.

He said Ukraine’s experience showed that if attacks by Russia that fall under the threshold of conventional war are not successfully countered, full-scale conflict could follow.

“Ukraine once lost a hybrid war that had been waged since the very start of our independence,” he said.

“Because of that defeat, there was a physical operation against us in Crimea and then a physical operation in 2022.

“Now the hybrid war has reached its climax, and it is moving into the Baltic States and Europe.

“That is why, in my opinion – and in the opinion of most of our officers – now is the moment for all countries to unite and counter this hybrid war. Because the consequence may be a physical one.”

Production: Katy Scholes, security and defence producer, and Azad Safarov, Ukraine producer.

Camera operator: Mostyn Pryce

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