Nadhim Zahawi sacked as Tory chairman over tax affairs row
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
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What’s going on with Zahawi’s taxes?
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”.
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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”.
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Zahawi sacking ‘is brutal’
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”.
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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.”
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PM took ‘decisive action’ following Zahawi report
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.
World
Body of missing rabbi Zvi Kogan found in UAE – as Israeli PM says he was murdered in ‘antisemitic terror incident’
The COP29 climate talks have reached a last ditch deal on cash for developing countries, pulling the summit back from the brink of collapse after a group of countries stormed out of a negotiating room earlier.
The slew of deals finally signed off in the small hours of Sunday morning in Azerbaijan includes one that proved hardest of all – one about money.
Eventually the more than 190 countries in Baku agreed a target for richer polluting countries such as the UK, EU and Japan to drum up $300bn a year by 2035 to help poorer nations both curb and adapt to climate change.
It is a far cry from the $1.3trn experts say is needed, and from the $500bn that vulnerable countries like Uganda had said they would be willing to accept.
But in the end they were forced to, knowing they could not afford to live without it, nor wait until next year to try again, when a Donald Trump presidency would make things even harder.
Bolivia’s lead negotiator Diego Pacheco called it an “insult”, while the Marshall Islands’ Tina Stege said it was “not nearly enough, but it’s a start”.
UN climate chief Simon Stiell said: “This new finance goal is an insurance policy for humanity, amid worsening climate impacts hitting every country.
“No country got everything they wanted, and we leave Baku with a mountain of work still to do. So this is no time for victory laps.”
The funding deal was clinched more than 24 hours into overtime, and against what felt like all the odds.
The talks were rocked from the start by the incoming presidency of climate denier Mr Trump, the moment Argentina’s team were recalled back to Buenos Aires by their right-wing president and a controversial letter that sent shockwaves through the United Nations.
Pic: AP
The fraught two weeks of negotiations pitted the anger of developing countries who are footing the bill for more dangerous weather that they did little to cause, against the tight public finances of rich countries.
A relieved Juan Carlos Monterrey Gomez, climate envoy for Panama, said there is “light at the end of the tunnel”.
Just hours ago, the talks almost fell apart as furious vulnerable nations stormed out of negotiations in frustration over that elusive funding goal.
They were also angry with oil and gas producing countries, who stood accused of trying to dilute aspects of the deal on cutting fossil fuels.
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Climate-vulnerable nations storm out of talks
The UN talks work on consensus, meaning everyone has to agree for a deal to fly.
A row over how to follow up on last year’s pledge to “transition away from fossil fuels” was left unresolved and punted into next year, following objections from Chile and Switzerland for being too weak.
A draft deal simply “reaffirmed” the commitment but did not dial up the pressure in the way the UK, EU, island states and many others here wanted.
Saudi Arabia fought the hardest against any step forward on cutting fossil fuels, the primary cause of climate change that is intensifying floods, drought and fires around the world.
Governments did manage to strike a deal on carbon markets at COP29, which has been 10 years in the making and will allow countries to trade emissions cuts.
‘Not everything we wanted’
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The UK’s energy secretary, Ed Miliband, said the deal is “not everything we or others wanted”, but described it as a “step forward”.
“It’s a deal that will drive forward the clean energy transition, which is essential for jobs and growth in Britain and for protecting us all against the worsening climate crisis,” he added.
“Today’s agreement sends the signal that the clean energy transition is unstoppable.
“It is the biggest economic opportunity of the 21st century and through our championing of it we can help crowd in private investment.”
Protesters at the summit in Baku. Pic: AP
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The Azerbaijan team leading COP29 said: “Every hour of the day, we have pulled people together. Every inch of the way, we have pushed for the highest common denominator.
“We have faced geopolitical headwinds and made every effort to be an honest broker for all sides.”
At least 20 people have been killed and 66 injured in Israeli strikes on central Beirut, Lebanese authorities have said.
Lebanon‘s health ministry said the death toll could rise as emergency workers dig through the rubble looking for survivors. DNA tests are being used to identify the victims, the ministry added.
The attack destroyed an eight-storey residential building and badly damaged several others around it in the Basta neighbourhood at 4am (2am UK time) on Saturday.
The central Basta neighbourhood in Beirut
The Israeli military did not warn residents to evacuate before the attack and has not commented on the casualties.
At least four bombs were dropped in the attack – the fourth targeting the city centre this week.
A separate drone strike in the southern port city of Tyre this morning killed two people and injured three, according to the state-run National News Agency.
The victims were Palestinian refugees from the nearby al Rashidieh camp who were out fishing, according to Mohammed Bikai, spokesperson for the Fatah Palestinian faction in the Tyre area.
Israel’s military warned residents today in parts of Beirut’s southern suburbs that they were near Hezbollah facilities, which the army would target in the near future. The warning, posted on X, told people to evacuate at least 500 metres away.
The army said that over the past day it had conducted intelligence-based strikes on Hezbollah targets in Dahiyeh, in Beirut’s southern suburbs, where Hezbollah has a strong presence. It said it hit several command centres and weapons storage facilities.
Pic: AP
Israel has killed several Hezbollah leaders in air strikes on the capital’s southern suburbs.
Heavy fighting between Israel and Hezbollah is ongoing in southern Lebanon, as Israeli forces push deeper into the country since launching a major offensive in September.
According to the Lebanese health ministry, at least 3,670 people have been killed in Israeli attacks there, with more than 15,400 wounded.
It has displaced about 1.2 million people – a quarter of Lebanon’s population – while Israel says about 90 soldiers and nearly 50 civilians have been killed in northern Israel.
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‘Dozens’ of Palestinians killed in Israeli airstrike
Meanwhile, six people, including three children and two women, were killed in the southern Gazan city of Khan Younis.
Some 44,176 Palestinians have been killed since the start of Israel’s military campaign in Gaza, according to the Gaza health ministry.
The ministry does not distinguish between civilians and combatants in its count, but it has said that more than half of the fatalities are women and children.
The war began when Hamas-led militants stormed into southern Israel on 7 October 2023, killing some 1,200 people and taking another 250 hostage.
US envoy Amos Hochstein was in the region this week to try to end more than 13 months of fighting between Israel and Hezbollah, ignited last October by the war in Gaza.
Mr Hochstein indicated progress had been made after meetings in Beirut on Tuesday and Wednesday, before going to meet Israeli Prime Minister Benjamin Netanyahu and defence minister Israel Katz.
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