“I think he should be considering whether he stands aside for the period of the inquiry.”
Image: Lord Hayward
It comes after former minister Caroline Nokes said there were “too many unanswered questions” over the tax row and said Mr Zahawi should “stand aside and let the investigation run its course”.
The inquiry by new ethics adviser Sir Laurie Magnus is expected to focus on whether the cabinet minister breached the ministerial code with the estimated £4.8m HMRC settlement he made while he was chancellor, but it could extend to his prior tax arrangement and whether he lied to the media.
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Rishi Sunak said there are “questions that need answering” but has come under criticism for resisting calls to sack him.
It is unclear what the prime minister knew about Mr Zahawi’s dealings with the tax office when he appointed him to his cabinet in October.
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Lord Hayward is also a polling expert, and advised previous Conservative governments heading into elections.
He said that the issues Mr Sunak is facing at the moment, including Mr Zahawi’s tax affairs, are working in tandem with the ongoing strikes to “flatline” the Conservative Party’s popularity.
Labour leader Sir Keir Starmer is likely to seize on the fallout from Mr Zahawi’s multi-million pound settlement at Prime Minister’s Questions on Wednesday.
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0:14
Zahawi refuses to answer questions on political future
During last week’s PMQS, Mr Sunak said that Mr Zahawi had “already addressed this matter in full” as questions starting swirling about his tax affairs.
But this was before the cabinet minister released a statement admitting he paid what HMRC said “was due” after it “disagreed about the exact allocation” of shares in YouGov – the polling company he co-founded – an error he noted was “careless not deliberate”.
Sky News understands that, as part of a settlement with HMRC, Mr Zahawi paid a penalty to the tax collector.
Sources close to Mr Zahawi have said he is “absolutely not standing down” and in a statement on Monday he said: “I am confident I acted properly throughout and look forward to answering any and all specific questions in a formal setting to Sir Laurie.”
A Russian attack on a civilian bus in Ukraine’s northeast Sumy region has killed nine people and injured four others, the Ukrainian military has said.
“Medics and rescuers have been urgently sent to the scene,” Ihor Tkachenko, head of Sumy’s military administration, said on Telegram.
Russia’s TASS state news agency said the defence ministry had claimed Russian forces struck a Ukrainian military equipment staging area in the Sumy region with drones.
The deaths prompted a strong response from Ukraine’s National Police on the Telegram messaging app: “This is not just another shelling – it is a cynical war crime”.
Ukraine’s police posted photos of a dark blue passenger van nearly destroyed, with the roof torn off and the windows blown out.
The attack comes hours after Russia and Ukraine held their first direct peace talks in three years.
The meeting of Russian and Ukrainian officials in Turkey on Friday failed to broker a temporary ceasefire.
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This breaking news story is being updated and more details will be published shortly.
Up to a million Palestinians could be permanently relocated from devastated Gaza to war-torn Libya under plans being worked on by Donald Trump’s administration, NBC News reports.
The idea has been discussed with Libya’s leadership, sources told Sky’s US partner network, and would potentially see billions of dollars in frozen Libyan funds released.
The North African country remains divided in two – nearly 14 years after the overthrow of dictator Muammar Gaddafi sparked a civil war – with two rival governments fighting for control.
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3:07
Sky’s team saw bodies arrive at Gaza’s Indonesian Hospital
No final agreement on any Libya plans have been reached, sources told NBC News, and US government agencies did not respond to requests for comment from the news outlet.
Previous suggestions to resettle Palestinians from Gaza – voluntarily or otherwise – have provoked international outcry, particularly from Arab states who likely will play a role in rebuilding the enclave after any permanent ceasefire deal.
And Libya is far from a safe nation, according to the US State Department’s own travel advice, which says Americans should not travel to the country “due to crime, terrorism, unexploded landmines, civil unrest, kidnapping, and armed conflict”.
President Trump, speaking on the final day of his Middle East trip, said he was looking to resolve a range of global crises, including Gaza.
“We’re looking at Gaza,” he said. “And we’ve got to get that taken care of. A lot of people are starving. A lot of people are – there’s a lot of bad things going on.”
Image: An Israeli tank nears the border with Gaza. Pic: Reuters
There had been hopes that his tour of the region could increase the chances of a ceasefire deal or prompt Israel to lift its blockade of Gaza that is preventing humanitarian aid from getting in.
But instead Israel has continued to launch airstrikes on the territory, killing more than 250 people in the last two days, according to Hamas-run health authorities.
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The Israeli military, which had dropped leaflets on the northern town of Beit Lahia ordering residents to leave, said their airforce had struck more than 150 military targets across Gaza in recent days.
This week, Israel said it had bombed the European Hospital because it was home to an underground Hamas base, but Sky News analysis has cast doubt on its evidence.
Israeli officials said the latest strikes were a prelude to a larger military campaign in Gaza aimed at pressuring Hamas to release hostages.
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Ahmed Abu Riziq, founder of the Gaza Great Minds Foundation, which seeks to give children access to education in Gaza, said “the hell doors opened” in the last few days.
Speaking to Sky News from Gaza City, he said: “Myself with my family, we had to flee today from some certain areas in northern Gaza City… people are running in the streets. They don’t know where to go or where to sleep at night. So it’s really catastrophic.”
“No food is entering Gaza,” he added, saying that people are dying from hunger.
Tom Fletcher, head of the UN office for the coordination of humanitarian affairs, warned the Security Council this week it must “act now” to “prevent genocide” – a claim Israel vehemently denies.
Russia and Ukraine failed to agree to a ceasefire in their first direct talks since 2022 – as European leaders called Moscow’s approach “unacceptable” after the discussions lasted less than two hours and Vladimir Putin stayed away.
The meeting in Istanbul, Turkey, was set up at short notice on President Putin‘s behest, but he declined a challenge from Volodymyr Zelenskyy to meet him in person and instead sent relatively junior representatives.
A source in the Ukrainian team told Sky News that Russia had threatened “eternal war” during the talks.
They said the Russians were not ready to talk about technical details of a ceasefire and were waiting for superiors to approve them.
Image: Turkish foreign minister Hakan Fidan chairs a meeting between Ukrainian and Russian negotiators in Istanbul. Pic: Reuters
Both countries said they had agreed to trade 1,000 prisoners of war each in what would be the biggest such exchange yet of the conflict.
But Kyiv wants the West to impose tighter sanctions unless Moscow accepts a proposal from Donald Trump for a 30-day ceasefire.
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President Zelenskyy said after the meeting that he had spoken to Mr Trump by phone – alongside Sir Keir Starmer and the leaders of France, Germany and Poland – who all met in Albania on Friday.
In a post on X, he said Ukraine was “ready to take the fastest possible steps to bring real peace” and that “tough sanctions must follow” if Russia continues to resist a month-long truce.
Image: The Ukrainian delegation. Pic: Reuters
Image: The Russian delegation. Pic: Reuters
Frustration over Russia‘s perceived stalling in holding serious negotiations was also clear from the European leaders gathered in Tirana.
“The Russian position is clearly unacceptable, and not for the first time,” said Sir Keir.
“So as a result of that meeting with President Zelenskyy and that call with President Trump we are now closely aligning our responses and will continue to do so.”
Image: The talks were held in Dolmabache Palace in Istanbul. Pic: AP
The UK prime minister said the no-show by Russia’s leader was “more evidence that Putin is not serious about peace” and has “been dragging his heels”.
NATO secretary-general Mark Rutte, who was also in Albania, said President Putin had made a “big mistake” by sending low-level delegates to Istanbul.
A list of representatives ahead of the meeting listed presidential aide Vladimir Medinsky, deputy foreign minister Galuzin Mikhail Yuryevich and deputy defence chief Alexander Fomin.
Ukraine’s delegation was led by defence minister Rustem Umerov.
President Zelenskyy had called the Russian team “a theatre prop” ahead of the summit in the Dolmabahce Palace.
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3:31
Ukrainian ‘despair’ over missing civilians
However, Turkey’s foreign minister heralded it as “an important day for world peace” and said Russia and Ukraine had agreed to swap 1,000 POWs each as a “confidence-building measure”.
Hakan Fidan shared a picture of the delegations and said they had “agreed to share with the other side in writing the conditions that would make it possible to reach a ceasefire”.
Russia’s Vladimir Medinsky said his team had “taken note” of the Ukrainian request for direct talks between Mr Putin and Mr Zelenskyy.
“We have agreed that each side will present its vision of a possible future ceasefire and spell it out in detail,” said Mr Medinsky.
Hopes ahead of the meeting were low after Mr Trump and his secretary of state, Marco Rubio, played down the prospect of meaningful progress.
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1:08
Trump on meeting Putin: ‘As soon as we can set it up’
The US president told reporters on Air Force One on Thursday “nothing’s going to happen until Putin and I get together”, while Mr Rubio said a “breakthrough” was unlikely until the US and Russian presidents meet.
No date for such a meeting has been proposed, but Mr Trump has said it will happen “as soon as we can set it up”.
Kremlin spokesman Dmitry Peskov told reporters that top-level talks were “certainly needed” but arranging it would take time.
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Russian foreign minister Sergei Lavrov was a notable absentee, despite attending Ukraine-focused talks with the US in Saudi Arabia in February.
Russia has so far failed to agree to a 30-day unconditional ceasefire – proposed by European leaders who have threatened Moscow with “massive” sanctions if it doesn’t sign up. The US also supports the plan.
The Kremlin has ambitions to keep swathes of Ukrainian land as part of any long-term truce, an idea that Kyiv firmly rejects.
Russia also wants an end to Ukraine’s NATO ambitions and a promise it will stay neutral.