Nadhim Zahawi sacked as Tory chairman over tax affairs row

Published

3 years ago

January 29, 2023

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Nadhim Zahawi has been sacked as Tory party chairman after an ethics inquiry into the handling of his tax affairs found a “serious breach” of the ministerial code.

Prime Minister Rishi Sunak had resisted earlier calls from opposition parties to sack Mr Zahawi as Tory party chairman following reports that he had paid a penalty as part of an estimated £4.8m settlement dispute with HMRC.

He had instead asked his new ethics adviser – Sir Laurie Magnus – to assess whether the settlement amounted to a breach of the ministerial code.

In a letter written by Sir Laurie to the PM this morning following the conclusion of the investigation, the ethics adviser said Mr Zahawi had “shown insufficient regard for the general principles of the ministerial code” and had not fulfilled the requirements of being an “honest, open and an exemplary leader”.

In a second letter written by the PM to Mr Zahawi following Sir Laurie’s findings, Mr Sunak said it is “clear that there has been a serious breach of the ministerial code” and announced the removal of the Tory chairman from his ministerial position.

Zahawi fired as Tory party chairman – politics latest

Mr Zahawi had faced pressure in recent days to quit as questions swirled about his finances even after he released a statement to “clear up some of the confusion”.

He admitted he paid what HMRC said “was due” after it “disagreed about the exact allocation” of shares in the YouGov polling company he co-founded – an error he said was “careless, not deliberate“.

But he did not disclose the size of the settlement or whether he paid a fine.

In the correspondence to Mr Sunak released by Downing Street, Sir Laurie said his overall judgement was that the “omissions” by Mr Zahawi regarding his tax affairs “constitute a serious failure to meet the standards set out in the ministerial code”.

In the four-page report to Mr Sunak, dated 29 January, Sir Laurie says:

• Mr Zahawi had a “delay in correcting an untrue public statement” made in July 2022 – in which he told Sky News reports of an investigation were “inaccurate, unfair and clearly smears”

• Mr Zahawi’s contact with HMRC began in April 2021 but he did not declare it

• He failed to declare the ongoing HMRC investigation when appointed as education secretary in October 2021

• He still did not mention the probe when appointed as chancellor in July 2022

• Mr Zahawi reached an in-principle settlement with HMRC in August 2022 – with a settlement in September 2022 along with a penalty – which was not disclosed until January 2023

• He again did not disclose the investigation when appointed Chancellor of the Duchy of Lancaster by former PM Liz Truss in September – or when made Tory party chairman by Mr Sunak in October

• Mr Zahawi “should have understood” that HMRC was investigating “a serious matter”

• The cabinet office “was not in a position to inform the appointing prime minister” about Mr Zahawi’s tax affairs as he failed to disclose the relevant information to the department

• Mr Zahawi’s conduct “has fallen below the high standards” that a PM should expect from ministers

• The Tory chairman showed “insufficient regard” for the ministerial code

Informing Mr Zahawi of his decision to remove him from government, Mr Sunak wrote: “When I became prime minister last year, I pledged that the government I lead would have integrity, professionalism and accountability at every level.

“That is why, following new information which came to light in recent days regarding your personal financial arrangements and declarations, I asked Sir Laurie Magnus, the Independent Adviser on Ministers’ Interests, to fully investigate this matter.

“You agreed and undertook to cooperate fully with the inquiry.

“Following the completion of the independent adviser’s investigation – the findings of which he has shared with us both – it is clear that there has been a serious breach of the Ministerial Code.

“As a result, I have informed you of my decision to remove you from your position in His Majesty’s Government.”

The PM added that Mr Zahawi should be “extremely proud” of his “wide-ranging achievements in government over the last five years”, particularly crediting his “successful oversight of the COVID-19 vaccine procurement and deployment programme”.

The row surrounding Mr Zahawi had centered on a tax bill over the sale of shares in YouGov – the polling firm he founded worth an estimated £27m – which were held by Balshore Investments, a company registered offshore in Gibraltar and linked to Mr Zahawi’s family.

Mr Zahawi had insisted he was “confident” he had “acted properly throughout”.

Labour, the Lib Dems and former Tory minister Caroline Nokes had publicly called for him to go.

In a statement on Sunday morning, the Lib Dems said Mr Zahawi should also step down from his role as an MP as he is “unfit to serve the people of Stratford-on-Avon”.

But in a letter to Mr Sunak following his sacking – in which he made no apology for his actions – Mr Zahawi told the PM he can be “assured of my support from the backbenches in the coming years”.

He added that he is concerned “about the conduct from some of the fourth estate in recent weeks”, in a reference to the media.

Mr Zahawi said: “It has been, after being blessed with my loving family, the privilege of my life to serve in successive governments and make what I believe to have been a tangible difference to the country I love.”

He added: “I am sorry to my family for the toll this has taken on them.

“Your five priorities are the right priorities, and I will do whatever I can to help you deliver them.”

Speaking shortly after Mr Zahawi’s sacking, Levelling Up Secretary Michael Gove told reporters Mr Sunak had taken “decisive action” following the publication of Sir Laurie’s report.

He added: “I don’t think Nadhim should resign as an MP, absolutely not.”

But Labour’s shadow education secretary Bridget Phillipson told Sky News the PM should have sacked Mr Zahawi before now.

“Despite the writing on the wall, the prime minister showed himself to be too weak to act.

“Rishi Sunak should have sacked Nadhim Zahawi a long time ago, just as he should have acted over Dominic Raab and Suella Braverman, but in his weakness he promoted them.”

It is understood that the PM is unlikely to appoint a new Conservative chairman by the end of Sunday.

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Vladimir Putin demands key regions of Ukraine in ‘exchange for peace’

Published

4 hours ago

August 17, 2025

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Vladimir Putin demands key regions of Ukraine in 'exchange for peace'

Vladimir Putin made demands to take control of key regions of Ukraine during his talks with Donald Trump, it has been widely reported, as a condition for ending the war.

During their summit in Alaska, the Russian leader is said to have told the US president he wants the eastern Donetsk and Luhansk regions – and would give up other Ukrainian territories held by his troops in exchange.

The plans were reported by several news outlets, citing sources close to the matter, as Mr Trump scheduled a further meeting with Ukrainian president Volodymyr Zelenskyy in Washington DC for Monday. He has said this could potentially pave the way for a three-way meeting with Mr Putin.

Mr Trump reportedly backs the plans, according to some outlets – but Mr Zelenskyy has previously ruled out formally handing any territory to Moscow. Russia already controls a fifth of Ukraine, including about three-quarters of Donetsk province, which it first entered in 2014.

US-Russia talks on Ukraine – latest updates

Details of the plans emerged after little was revealed during the high-profile summit between the US and Russian leaders on Friday.

Despite threats by the US president beforehand, of sanctions for Russia should there be no agreement on a ceasefire, a short news briefing after the talks ended with no mention of a suspension of fighting, no announced agreement on how to end the war, and little clarity about the next steps.

On Saturday, Mr Trump appeared to change his stance on what he hopes to achieve in Ukraine, indicating he wants a permanent peace settlement rather than a ceasefire.

“It was determined by all that the best way to end the horrific war between Russia and Ukraine is to go directly to a Peace Agreement, which would end the war, and not a mere Ceasefire Agreement, which often times do not hold up,” he said in a post on his social network site, Truth Social.

Trump: ‘Russia is a big power – they’re not’

In an interview with Fox News following the summit, Mr Trump signalled he and Putin had discussed land transfers and security guarantees for Ukraine, and had “largely agreed”. He said Ukraine has to made a deal, as “Russia is a very big power, and they’re not”.

Monday’s meeting at the White House will be the Ukrainian president’s second this year. His last descended into a fiery spat with Mr Trump and his vice president JD Vance, which saw him leave early.

After the fresh meeting was announced, Mr Zelenskyy in a post on X that he was grateful for the invitation.

“It is important that everyone agrees there needs to be a conversation at the level of leaders to clarify all the details and determine which steps are necessary and will work,” he said.

However, he said Russia had rebuffed “numerous calls for a ceasefire and has not yet determined when it will stop the killing”, which “complicates the situation”.

Mr Zelenskyy continued: “If they lack the will to carry out a simple order to stop the strikes, it may take a lot of effort to get Russia to have the will to implement far greater – peaceful coexistence with its neighbours for decades.

“But together we are working for peace and security. Stopping the killing is a key element of stopping the war.”

Putin releases statement on summit

In a statement on the summit, Mr Putin described the talks as “timely and quite useful” – but said the “removal” of what he calls the “root causes” of the crisis “must underlie the settlement”.

He continued: “We definitely respect the US administration’s position which wants the hostilities to stop as soon as possible. So do we, and we would like to move forward with settling all issues by peaceful means.

“The conversation was very frank and substantive, which, in my view, moves us closer towards making necessary decisions.”

European leaders who make up the “coalition of the willing” are set to hold a conference call today ahead of the crunch talks between Mr Trump and Mr Zelenskyy.

Prime Minister Keir Starmer, French President Emmanuel Macron and German Chancellor Friedrich Merz will host the video conference.

In a statement on Saturday,Sir Keir said Mr Trump’s efforts had “brought us closer than ever before to ending Russia’s illegal war in Ukraine” and that his leadership “in pursuit of an end to the killing should be commended”.

He said he supported the next phase of talks, but added: “In the meantime, until (Putin) stops his barbaric assault, we will keep tightening the screws on his war machine with even more sanctions.”

Meanwhile, Ukraine’s military has reported an advance of up to 2km on the Sumy front in the country’s northeast.

“Zones of continuous enemy fire damage are being maintained,” the Ukrainian General Staff said on Telegram. “Ukrainian troops are repelling Russian forces”.

In the early hours of Sunday, a regional governor in Russia said a railway employee had been injured and a power line damaged by a Ukrainian drone attack.

The incident happened in the Voronezh region, Alexander Gusev said on Telegram.

World

Starmer to meet with European leaders for ‘coalition of the willing’ talks on Ukraine

Published

10 hours ago

August 16, 2025

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Starmer to meet with European leaders for 'coalition of the willing' talks on Ukraine

European leaders who make up the ‘coalition of the willing’ are set to hold a conference call on Sunday – ahead of crunch talks between Donald Trump and Ukraine’s Volodymyr Zelenskyy next week.

The coalition – co-chaired by Sir Keir Starmer, France’s President Emmanuel Macron and Germany’s Chancellor Friedrich Merz – has the aim of bringing countries together to protect a peace deal in Ukraine.

Top of the agenda at Sunday’s meeting will be securing a concrete commitment from Mr Trump on a security guarantee that would act as a powerful backstop in any Russia-Ukraine peacekeeping arrangement.

Ukraine war latest: Putin comments on Trump talks

European leaders seemed buoyed by the US president’s most recent hints on the subject, in the knowledge that US military might is likely to deter Vladimir Putin from advancing in the future.

They will also discuss how to bring Mr Zelenskyy into talks after Mr Trump and Mr Putin’s Alaska meeting saw him left out in the cold.

In coordinated statements, European leaders said Mr Zelenskyy must play a greater role in future talks, and that peace cannot be achieved without him.

The hard bit will be to persuade the unpredictable US administration to change its approach, something that has proved almost impossible in the past.

When Mr Trump re-entered the White House and made it clear the US would no longer provide a blank cheque to protect peace in Europe, others decided they had to step up, and the ‘coalition of the willing’ was thrown together in March.

Since then, information about the allied peacekeeping effort has been patchy, but we know it includes over 30 countries, which have been asked to pledge whatever military support they can, including troops.

What has been forthcoming from the group though, has been consistent attempts to use their limited leverage to put pressure on the US.

That will continue ahead of crunch talks between Mr Trump and Mr Zelenskyy, which are set to take place in Washington on Monday.

World

Trump-Putin summit: No deal reached to end war in Ukraine

Published

1 day ago

August 16, 2025

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Trump-Putin summit: No deal reached to end war in Ukraine

No deal has been reached to end the war in Ukraine – but Donald Trump has said there are “many points” he and Vladimir Putin agreed on during their highly anticipated summit.

Following the meeting in Alaska, which lasted more than two-and-a-half hours, the two leaders gave a short media conference giving little detail about what had been discussed, and without taking questions.

Mr Trump described the meeting as “very productive” and said there were “many points that we agreed on… I would say a couple of big ones”.

Trump-Putin summit – latest updates

But there are a few left, he added. “Some are not that significant. One is probably the most significant, but we have a very good chance of getting there…

“We haven’t quite got there, we’ve made some headway. There’s no deal until there’s a deal.”

Mr Putin described the negotiations as “thorough and constructive” and said Russia was “seriously interested in putting an end” to the war in Ukraine. He also warned Europe not to “torpedo nascent progress”.

After much build-up to the summit – with the US president threatening “severe” consequences for Russia should it not go well – it was ultimately not clear whether the talks had produced meaningful steps towards a ceasefire in what has been the deadliest conflict in Europe in 80 years.

Mr Trump said he intended to speak with Ukrainian President Volodymyr Zelenskyy and other European leaders, who were excluded from the discussions, to brief them.

Despite not reaching any major breakthrough, the US leader ended his remarks with a thank you, and said he would probably see Mr Putin again “very soon”.

When the Russian president suggested that “next time” would be Moscow, he responded by saying he might face criticism, but “I could see it possibly happening”.

The red carpet treatment

The news conference came after a grand arrival at the Elmendorf-Richardson military base in Anchorage, where the US president stepped down from Air Force One and later greeted his Russian counterpart with a handshake and smiles on a red carpet.

Mr Putin even travelled alongside Mr Trump in the presidential limousine, nicknamed “The Beast”.

It was the kind of reception typically reserved for close US allies, belying the bloodshed and the suffering in the war.

Before the talks, the two presidents ignored frantically-shouted questions from journalists – and Mr Putin appeared to frown when asked by one reporter if he would stop “killing civilians” in Ukraine, putting his hand to his ear as though to indicate he could not hear.

Our US correspondent Martha Kelner, on the ground in Alaska, said he was shouting “let’s go” – apparently in reference to getting the reporters out of the room.

A ’10/10′ meeting

During his first day back in the White House in January, Mr Trump had pledged confidently to bring about an end to the war in Ukraine.

But seven months later, after infamously berating Mr Zelenskyy during a meeting at the Oval Office in February, and then stanching the flow of some US military assistance to Kyiv, he still does not appear to have brought a pause to the conflict.

In an interview with Fox News before leaving Alaska, Mr Trump described the meeting with Mr Putin as “warm” and gave it a “10/10”, but declined to give details about what they discussed.

He also insisted that the onus going forward could be on Mr Zelenskyy “to get it done”, but said there would also be some involvement from European nations.

What happens next?

Mr Trump is expected to speak to Mr Zelenskyy, Sir Keir Starmer and European leaders about the talks.

A meeting of ambassadors from European countries has been scheduled for 8.30am UK time, EU presidency sources have told Sky News.

European heads of state and Mr Trump are also likely to have a virtual meeting later in the day.

Despite the US president’s efforts to bring about a ceasefire, Russian attacks on Ukraine have only intensified in the past few months.

On 9 July, Russia carried out its largest aerial attack on Ukraine since the start of the war, launching more than 740 drones and missiles.

Furthermore, Mr Zelenskyy has said Russia is preparing for new offensives.

Ahead of the summit, one of the key commanders of Ukraine’s drone forces told Sky News in a rare interview that there would be no let-up in its own long-range drone attacks on Russia until Moscow agrees to peace.