Nadhim Zahawi tax row: Rishi Sunak’s integrity is taking a hit as he prolongs the pain over Tory party chairman
There is plenty of bemusement, irritation and anger in some quarters of the Conservative Party as to why Nadhim Zahawi is still in post.
Revelations that the party chairman reportedly paid nearly £5m to HM Revenue and Customs (HMRC) to settle a tax dispute, and pay a penalty over around £27m of wealth on which he did not initially pay tax is, for some MPs, a closed case rather than something that needs further investigation.
As one minister pointed out to me on Wednesday, what really mattered here was not the conflict of interest of Mr Zahawi being the chancellor while he was in dispute with the HMRC or what the PM knew when.
What matters here is the naked optics of a cabinet minister receiving around £27m that he didn’t initially pay tax on when people were struggling to make ends meet.
So while the prime minister on Wednesday spoke of following “due process” in determining whether the cabinet minister had broken the ministerial code, the public is more likely to have decided Mr Zahawi had not followed due process of paying his taxes – as they have to do every year – and drawn their own conclusions.
For his part, Mr Zahawi is clear that it was a “careless” error, the tax he owed was paid and the matter settled.
But the sight of Sir Keir Starmer taking easy shots at the prime minister for not asking Mr Zahawi to stand aside over the whole affair was hard for some to stomach.
Many MPs have concluded the party chairman is going to have to stand down over this affair anyway, and the investigation into the matter by the PM’s independent ethics advisor is only drawing out the pain.
“Many people in the party think that the situation is unsustainable and will only end one way,” is how one senior party figure put it to me on Wednesday.
“The point here is that the public sees a minister with £27m who didn’t pay his tax.”
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Rishi Sunak answers Zahawi question at PMQs
There are myriad explanations as to why Mr Sunak hasn’t sacked Mr Zahawi.
His team argues that the prime minister promised to do things properly and “there is a process to follow”.
He is also in a bit of a bind given that he neither sacked nor suspended Deputy Prime Minister Dominic Raab over the eight bullying allegations he is now under investigation over, so it would have been hard to treat Mr Zahawi differently.
There is also chatter that he doesn’t have the authority just to sack the party chairman without a fight or backlash, and instead has to do it following a procedure.
But the situation is causing problems.
Read more:
No 10 confirms Rishi Sunak has never paid tax penalty
What did Nadhim Zahawi do?
Nadhim Zahawi arrives at the Conservative Party head office
‘Job too big’ for Sunak
Sir Keir used it to reiterate his “weak prime minister” attack line on Wednesday and then went further to suggest that the combination of internal scandals and the problems in the NHS is evidence that the “job is too big” for Mr Sunak.
For a prime minister who has styled himself as a competent technocrat getting on with delivering, this is a very uncomfortable jibe that he will not want to stick.
It also calls into question the prime minister himself, both over his promise to lead a government of integrity and his own tax affairs.
Sir Keir was at it again on Wednesday, goading the prime minister over last year’s revelations that his wife Akshata Murty had in the past avoided tax in the UK by claiming non-dom status.
“We all know why [the PM’s] reluctant to ask his chairman about family affairs and tax avoidance,” remarked Sir Keir to the clear discomfort of the man sitting opposite him in the chamber.
Sir Keir Starmer has used the Zahawi row to say Mr Sunak is incompetent
Conflict over tax affairs
One former senior minister told me they think it’s difficult for the PM to sack someone over tax affairs when his family had its own tax scandal last year and thinks Number 10 is keeping Mr Zahawi in place as a “human shield” to avoid the attention shifting to the PM’s tax affairs.
But the questions are now being directed to Mr Sunak’s door after he was forced to confirm publicly that he had never paid a penalty to the taxman over his own tax affairs.
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For the PM’s part, he might well believe the inquiry by his independent ethics advisor is the right way to handle the situation. But his approach means he is also having to field the political blows and burn through his own political capital over a scandal that many in his party think will end with Mr Zahawi having to resign anyway.
“When this sort of thing happens, there’s only one outcome and it’s just a matter of when,” one former cabinet minister told me this week.
A PM then prolonging the pain for him, his chairman and his party, as his reputation for integrity and competence takes another hit.
World
Israel says it will screen October 7 attacks to Greta Thunberg and other activists after Gaza-bound aid boat ‘diverted’
The Israeli military will show Greta Thunberg and other activists footage of the 7 October attacks after a Gaza-bound aid boat was diverted to Israel, the country’s foreign minister has said.
Early on Monday, the Israeli foreign ministry said that the British-flagged yacht Madleen – operated by the pro-Palestinian Freedom Flotilla Coalition (FFC) – “is safely making its way to the shores of Israel”.
All passengers were safe and unharmed, the ministry added, sharing footage of the activists being handed sandwiches and water.
In a statement via his spokesperson, defence minister Israel Katz said that he has instructed the Israeli Defence Forces (IDF) to screen footage of the 7 October attacks for those aboard when they arrive at Ashdod Port.
Greta Thunberg was ‘safe and in good spirits’ while en route to Israel, the foreign ministry said. Pic: Israel Foreign Ministry
“Antisemitic Greta and her Hamas-supporting friends should see exactly what the Hamas terrorist organisation – which they came to support and act on behalf of – truly is,” he said.
“They should see the atrocities committed against women, the elderly, and children, and understand whom Israel is fighting to defend itself.”
He then added, “I commend the IDF for its swift and safe takeover” of the vessel, and said the Israeli military “will continue its just and moral fight against the Hamas murderers until their defeat, the release of all hostages, and the full restoration of Israel’s security”.
Ms Thunberg and other activists after their boat was diverted to Israel. Pic: Israel Foreign Ministry
Israel’s foreign ministry said earlier that those aboard the Madleen “are expected to return to their home countries,” and that the humanitarian aid aboard the ship would be transferred to Gaza through established channels.
Ms Thunberg was “safe and in good spirits” while en route to Israel, it added, calling the vessel “the ‘selfie yacht’ of the ‘celebrities'”.
The FFC claimed the passengers on the yacht had been “kidnapped by Israeli forces” and released pre-recorded messages from them after previously saying that the “Israeli army had boarded” the vessel.
Climate campaigner Ms Thunberg, 22, was one of a dozen activists aboard the Madleen, which set sail from Sicily on 1 May on a mission aiming to break Israel’s sea blockade.
Ms Thunberg pictured in a pre-recorded video, released after the Madleen was diverted to Israel. Pic: FFC
The climate campaigner aboard the Madleen on 2 June. Pic: Freedom Flotilla Coalition/Reuters
Rima Hassan, a French member of the European Parliament, who is of Palestinian descent, was also on the boat.
She has been barred from entering Israel because of her opposition to Israel’s policies towards Palestinians.
Ms Hassan wrote on X as the FFC’s yacht was allegedly surrounded by other vessels: “The crew of the Freedom Flotilla was arrested by the Israeli army in international waters around 2am.”
The diversion of the Madleen came after Mr Katz said that he had instructed the IDF to prevent the vessel from reaching the shore and to “take whatever measures necessary”.
The Madleen was heading for Gaza
Addressing Ms Thunberg and the other activists on Sunday, he said: “You should turn back – because you will not reach Gaza.”
Israel started allowing some basic aid into Gaza last month after a three-month total blockade aimed at pressuring Hamas and preventing the group from importing arms.
But humanitarian workers have warned of famine unless there is an end to the blockade and the 20-month war, which began after a Hamas-led assault on southern Israel on 7 October 2023, that killed more than 1,200 people.
According to the Hamas-run Gaza Health Ministry, more than 54,000 Palestinians have been killed since the start of Israel’s military campaign.
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Why is Greta sailing to Gaza?
An attempt last month by Freedom Flotilla to reach Gaza by sea failed after another of the group’s vessels was attacked by two drones while sailing in international waters off Malta.
The group blamed Israel for the attack, which damaged the front section of the ship.
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Francesca Albanese, United Nations’ special rapporteur on human rights in the Palestinian territories, also urged other boats to challenge the Gaza blockade.
She said on social media: “Madleen’s journey may have ended, but the mission isn’t over.
“Every Mediterranean port must send boats with aid & solidarity to Gaza.”
World
Colombian presidential candidate Miguel Uribe Turbay in ‘critical condition’ after attempted assassination – as 15-year-old suspect arrested
A 15 year-old-boy has been arrested after a Colombian senator running to be the country’s next president was shot and “critically” injured at a campaign rally in Bogota, authorities have said.
Senator Miguel Uribe Turbay, 39, was targeted during the campaign event in a park in the Fontibon area of the Colombian capital, according to the Attorney General’s office.
He suffered two gunshot wounds when armed assailants shot him from behind and appeared to be bleeding from his head as he was helped by aides and people in the crowd, in a video posted on social media.
According to a medical report at the Santa Fe Foundation hospital, he was admitted there in a “critical condition” and is still undergoing a “neurosurgical and peripheral vascular procedure”.
Opposition senator Miguel Uribe Turbay on 13 May. Pic: AP
His wife Maria Claudia Tarazone wrote on X that he is “fighting for his life” and urged Colombians to pray for him.
She later said he survived an initial operation for the injuries.
Ms Tarazone said: “Miguel came out of surgery, he made it. Every hour is a critical hour. He fought his first battle, and it went well. This will take time.”
The hospital said Mr Uribe Turbay had procedures on his head and his left thigh, and remained in intensive care as doctors try to stabilise his condition.
Two other people were injured in the attack but the nature of their injuries has not been made public.
A suspect, a 15-year-old boy, was arrested at the scene with a firearm and is being treated for a leg injury, police chief General Carlos Triana said.
The government is offering a $730,000 (£540,000) reward for information and President Gustavo Petro said the investigation will focus on who ordered the attack.
“For now there is nothing more than hypothesis,” he said, adding that failures in security protocols would also be looked into.
People gather outside the hospital where Mr Uribe Turbay is ‘fighting for his life’. Pic: Reuters
Mr Uribe Turbay, who announced his presidential bid for the right-wing Democratic Center Party in March, was accompanied by a team of 21 people at the time of the shooting, his office said, including councilman Andres Barrios.
He was hoping to run in the presidential elections taking place on 31 May next year – and succeed Mr Petro, the country’s first leftist leader.
His mother, who was a journalist, was kidnapped and killed in 1991 during one of the most violent periods in Colombia’s history.
Forensic investigators at the scene of Mr Uribe Turbay’s shooting in Bogota. Pic: AP
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His party described it as an “unacceptable act of violence”, while US secretary of state Marco Rubio condemned it in the “strongest possible terms”.
Writing on X, Mr Rubio also urged Colombia’s current president to “dial back the inflammatory rhetoric and protect Colombian officials”.
Police outside the hospital where Mr Uribe Turbay is being treated. Pic: AP
Former Colombian president Alvaro Uribe, who is not related to Mr Uribe Turbay, said the gunman had “attacked the hope of the country, a great husband, son, brother, and a great colleague”.
He cancelled a planned trip to France due to the “seriousness of the events”, his office said in a statement.
Messages of support poured in from elsewhere in Latin America, with Chilean President Gabriel Boric saying: “There is no room or justification for violence in a democracy.”
Ecuadorian President Daniel Noboa added: “We condemn all forms of violence and intolerance.”
Israel’s defence minister has threatened to “take whatever measures necessary” to stop an aid boat carrying Greta Thunberg from reaching Gaza.
The climate campaigner, 22, is one of a dozen activists aboard the Madleen, which set sail from Sicily last Sunday on a mission aiming to break Israel‘s sea blockade.
The activists have said they plan to reach Gaza‘s territorial waters as early as Sunday to deliver humanitarian aid.
But in a post on X, Israel’s defence minister Israel Katz said he has instructed the IDF to prevent the vessel reaching shore and to “take whatever measures necessary”.
Addressing Thunberg and the other activists, he said: “You should turn back – because you will not reach Gaza.”
He wrote: “I have instructed the IDF to act so that the “Madeleine” hate flotilla does not reach the shores of Gaza – and to take any means necessary to that end.
“To the anti-Semitic Greta and her fellow Hamas propaganda spokespeople, I say clearly: You should turn back – because you will not reach Gaza.
“Israel will act against any attempt to break the blockade or assist terrorist organizations – at sea, in the air and on land.”
Latest known position of the vessel
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Why is Greta sailing to Gaza?
Rima Hassan, a French member of the European Parliament, who is of Palestinian descent, is also on the boat, which is operated by the Freedom Flotilla Coalition.
She has been barred from entering Israel because of her opposition to Israel’s policies towards Palestinians.
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Israel started allowing some basic aid into Gaza last month after a three-month total blockade aimed at pressuring Hamas and preventing the group from importing arms.
But humanitarian workers have warned of famine unless there is an end to the blockade and the 20-month war, which was ignited by the Hamas-led attack on southern Israel on 7 Oct 2023.
An attempt last month by Freedom Flotilla to reach Gaza by sea failed after another of the group’s vessels was attacked by two drones while sailing in international waters off Malta.
The group blamed Israel for the attack, which damaged the front section of the ship.
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