The former chancellor Philip Hammond said he would not have accepted the job if he was being investigated by the tax office.
Asked by Sky News if it was “acceptable” that Nadhim Zahawi paid a penalty to HM Revenue & Customs to settle a tax dispute while in charge of the Treasury, Mr Hammond said: “My own personal view is that I would not want to accept the office of chancellor if I was at that time involved in a live negotiation of an outstanding tax case with HMRC.”
Mr Zahawi was chancellor in the closing days of the Boris Johnsonadministration and Mr Hammond said the former prime minister “has questions to answer” about his appointment to the cabinet.
“If he was aware of these issues, then I think the question falls at his door,” he said.
“Why did he appoint somebody to this role who clearly was not in a position to carry out that function?”
Mr Sunak has asked his ethics adviser to investigate whether Mr Zahawi, now the Tory party chairman, breached the ministerial code with the estimated £4.8m HMRC settlement he made while he was chancellor, but it could extend to his previous tax arrangement and whether he lied to the media.
Mr Hammond was chancellor under Theresa May and has previously said Mr Johnson was “not a good prime minister”.
Asked if Simon Case, the cabinet secretary who advises the PM, should take some blame, Lord Hammond said: “Well, ultimately it’s the prime minister who makes the decision who to appoint, who not to appoint to his cabinet, and what offices they should hold.
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“It would have been a very different question if Nadhim Zahawi was being appointed to a different office of state.
“But the chancellor does have responsibility for HMRC, and I think that makes it very difficult for any individual being in a position of effectively negotiating with yourself a tax settlement.”
On Saturday, Mr Zahawi released a statement saying he had paid what HMRC said “was due” after it “disagreed about the exact allocation” of shares in YouGov, the polling company he founded.
The senior Tory MP said this was a “careless and not a deliberate error” and did not confirm if any penalty was also levied. But Sky News understands that as part of the settlement with HMRC – thought to be around £4.8m – the chairman paid a penalty.
‘No penalties for innocent errors’
HMRC chief executive Jim Harra said carelessness “is a concept in tax law” and people aren’t penalised if they make an “innocent error” with their tax affairs.
Appearing before MPs at the Public Accounts Committee, he stressed he was not talking about a specific case but said: “There are no penalties for innocent errors in your tax affairs so if you take reasonable care but nevertheless make a mistake, whilst you would be liable for the tax and for interest if it’s paid late, you would not be liable for a penalty.
“But if your error was as a result of carelessness then legislation says a penalty could apply in those circumstances.”
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Keir Starmer asks Rishi Sunak about Nadhim Zahawi’s tax affairs
The prime minister told PMQs that while it would have been “politically expedient” to fire the cabinet minister, “due process” meant that the investigation into his tax affairs should be allowed to reach its conclusion.
No time scale has been set for the investigation, but Mel Stride, the work and pensions secretary, told ITV’s Peston programme it could be done within 10 days.
Trade minister Andrew Bowie has said Mr Sunak will “of course” sack Mr Zahawi if he has been found to have breached the ministerial code – but on Thursday Downing Street declined to get into hypotheticals and insisted the PM still had confidence in the embattled MP.
Mr Sunak is expected to be joined by Mr Zahawi when the cabinet meets for an away day at the prime minister’s grace-and-favour country house today.
The meeting at Chequers in Buckinghamshire is expected to focus on the government’s priorities for the country, but it has branded a “hideaway day” by the Lib Dems, who have accused the PM of “dodging scrutiny”.
Emergency responders are searching for bodies inside stranded cars and buildings following deadly flash floods in Spain that have killed at least 158 people.
Scenes of destruction have been left in the wake of the powerful floodwaters which hit the east of the country late on Tuesday and early Wednesday, marking Spain‘s worst natural disaster this century.
Cars have been piled high on top of each other, homes and businesses have been swept away, trees have been uprooted, and roads and bridges have been left unrecognisable.
At least 92 people have died in the worst-hit region of Valencia, while deaths were also reported in Castilla La Mancha and southern Andalusia.
An unknown number of people remain missing.
“Unfortunately, there are dead people inside some vehicles,” Spain’s transport minister Oscar Puente said.
In the Valencian district of La Torre, nine dead bodies were discovered inside a garage – with a local police officer among the victims.
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Man pulled from deadly floods
Luis Sanchez, a welder, said he saved several people from floodwaters rushing through the V-31 motorway south of Valencia city.
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“I saw bodies floating past. I called out but nothing,” Mr Sanchez said.
“The firefighters took the elderly first, when they could get in. I am from nearby so I tried to help and rescue people. People were crying all over, they were trapped.”
Satellite images from NASA show how severe flooding has impacted Valencia and its surrounding towns.
The images, captured on 30 October, show large areas to the south of the city covered in floodwater.
The Turia river, which runs through the city, can be seen at a much higher level.
The Pobles del Sud, a large lake nearby, overflowed. Much of the area surrounding the lake was covered in floodwater.
The worst of the destruction was concentrated in Paiporta, a municipality next to Valencia city, where 62 people have been reported dead.
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Spanish town ‘worst-hit’ by floods
Mayor Maribel Albalat told national broadcaster RTVE: “We found a lot of elderly people in the town centre. There were also a lot of people who came to get their cars out of their garages… it was a real trap.”
What has caused the devastation?
The flooding events in Spain have been hard to witness. But the rainfall there could never have been anything but devastating.
Chiva, located just to the west of Valencia, received 491mm of rain in an eight-hour window.
Some 100-200mm fell in surrounding areas with the accumulation of running water producing apocalyptic scenes.
In addition there have been over 20,000 lightning strikes.
Whilst the rainfall totals are astounding in themselves, this part of the world is simply not accustomed to huge quantities of water falling from the sky.
In an average year, Spain would expect somewhere between 50 and 100 mm of rain throughout the entire month of October but Valencia and Andalusia would expect far less – just 60–70mm.
So how did this happen? It’s attributable to a DANA, a “depresion aislada en niveles altos” or a “cut-off low”.
This is a low pressure system which becomes slow moving or stationary, blocked by high pressure elsewhere, which can only keep shedding its rain over the same area for long periods of time.
These systems are not that unusual. They occur when cool air from the north is drawn across the Mediterranean in late summer and autumn when the waters are war. The temperature differential enhances storms and rainfall totals.
But whilst not uncommon, this one was certainly extreme.
And it hasn’t gone yet. This same system has continued to bring further heavy rain and thunderstorms today, but it has now moved a little further north and east, heading toward the French border and currently remaining to the west of Barcelona.
The rain and thunderstorms are likely to continue for a few days yet with the Tarragona and Castellon regions still under an amber warning while a yellow warning remains in force for both eastern and western Spain.
Spanish Prime Minister Pedro Sanchez said on Thursday morning that Valencia had been declared a disaster zone and that the priority was to find victims and missing people.
He also urged those affected to stay at home as more torrential rain was forecast.
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“The most important thing is that I know Spanish people are aware that this phenomenon has not finished,” he said.
Sky News’ Europe correspondent Adam Parsons, reporting from Valencia, said the devastation suffered in the region is “enormous”.
“What we’re witnessing now are the locals here who are waking up and seeing what’s happened to their town and what has happened is something almost apocalyptic,” he said.
A nearby shop was left “absolutely wrecked” and looked like a “bomb has gone off in there”, he added.
Three days of mourning has been declared in Spain, beginning on Thursday.
Spain’s Mediterranean coast is used to autumn storms that can cause flooding, but this was the most powerful flash flood event in recent memory, and scientists have linked its strength to climate change.
“When the alert came the water was already two metres high,” Carolina shouts from her balcony. “There were no police, firefighters or the mayor. No one came to rescue us.”
The distress is echoed street after street.
Carmen puts her head in her hands and weeps.
“They have lost everything,” she says, pointing at her neighbours’ houses.
Every home is in ruins and their owners are heartbroken.
Dolores shows us inside her house. She says the flood was up to the ceiling but because no help came, they have had to hammer holes in the walls to clear the water.
“I feel awful. I’m terrified and very afraid. My husband is sick – we need more help,” she says.
The level of destruction is immense.
On the street, we meet Noel with his children. The youngest toddler barefoot in the mud.
Yesterday, Noel and his wife had nothing to eat. He feels helpless.
“Right now, there are people who are trapped. The mud is up to their waists, so they can’t open their doors,” he says.
“I live on a high floor so I didn’t have problems with the flooding in my home, but I don’t have water, light, or food.”
There’s a growing feeling of desperation in this suburb.
At one point, someone shouts “food!” and people rush to grab what they can from a nearby shop.
It’s not clear if they have been let in by the owner or are looting.
The devastation is so great and at a time when people are at their most in need, they feel frustrated and alone.
In a nearby shelter we meet people from Algemesi who have been made homeless by the flood.
Carol says she has never felt so hopeless.
“There was a tree trunk that came into the front of my house. There are no walls, no ceiling. I don’t have anything. There’s nothing left,” she explains, beginning to cry.
For many, the initial trauma of this natural disaster has been compounded in the aftermath by a feeling of loss and loneliness.
Thousands of North Korean soldiers are now positioned near Ukraine’s border and likely to enter combat in the coming days, the US says.
Russian troops have been training them in artillery, drones and “basic infantry operations, including trench clearing”, said US secretary of state Antony Blinken.
He said it strongly indicated they would be used on the front line and would therefore become legitimate targets for Ukraine.
Some 10,000 North Korean troops are in Russia, including up to 8,000 in the Kursk border region, Mr Blinken said.
The troops are wearing Russian uniforms and carrying Russian gear, according to US defence secretary Lloyd Austin.
“We’ve not yet seen these troops deploy into combat against Ukrainian forces, but we would expect that to happen in the coming days,” Mr Blinken said on Thursday.
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America’s top diplomat said the recruitment of troops from North Korea to Russia’s “meat grinder” was a “clear sign of weakness”.
Mr Blinken made the assessment after he and Mr Austin met their South Korean counterparts in Washington DC.
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Foreign minister Cho Tae-yul called for the immediate withdrawal of North Korean soldiers from Russia and condemned it “in the strongest possible terms”.
They also all agreed China should do more to rein in North Korea, Mr Blinken said, adding that he’d had a “robust conversation” with Beijing this week.
Mr Austin also announced that – with the US election just days away – America would soon be announcing new security assistance for Ukraine.
The deployment of troops to Russia is down to the close relationship between President Putin and North Korea’s Kim Jong Un.
A mutual defence pact was agreed during their summit, meaning the countries will help each other if they are attacked.
The US says North Korea has also given munitions to Russia as it continues its grinding effort to take more territory in Ukraine’s east.
The White House published images earlier this month which it said showed 1,000 containers of equipment being sent to Russia by rail.
There are concerns about what military aid Russia will now provide in exchange.
North Korea test-fired an an intercontinental ballistic missile for the first time in almost a year on Thursday and there is speculation Russia may have provided technological help.
In a statement, the US, Japan and South Korea condemned the launch as a “flagrant violation” of UN resolutions.
“We strongly urge (North Korea) to immediately cease its series of provocative and destabilising actions that threaten peace and security on the Korean Peninsula and beyond,” they said.