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.

World

Fierce battle for frontline towns where Ukraine’s soldiers are surrounded

Published

8 hours ago

November 23, 2025

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Fierce battle for frontline towns where Ukraine's soldiers are surrounded

Footage geolocated by Sky News showed Russian soldiers walking through the Shakhtarskyi neighbourhood on the outskirts of Pokrovsk on Thursday.

The video sheds light on the situation in this key frontline area, as Russian forces slowly encroach on Myrnohrad, the satellite town to Pokrovsk, and one of its last remaining outposts.

Videos geolocated by Sky News show fighting intensifying in recent weeks, as Russian forces attempt to gain control of the towns and their network of road and rail intersections.

Gaining control here would give Russia a base from which to access key cities further north that form part of Ukraine’s “fortress belt”.

Russian forces are advancing from all directions, according to the Institute for the Study of War (ISW), with only one small opening to the northwest of Myrnohrad remaining.

Estimated to be only 3km wide by military experts, this withdrawal corridor is patrolled by Russian drone units which monitor the area for moving vehicles and those who may attempt to leave on foot.

Russian forces have been advancing on Myrnohrad since late October.

Video from a Ukrainian unit in Myrnohad, posted on 29 October, shows a Russian vehicle attempting to enter the town from the northeast. The tank is attacked and soldiers attempting to enter on foot are targeted.

Video posted on 3 November shows Russian forces on the ground in the south of the town.

By 8 November, Russian strikes begin to pummel the northeast of Myrnohrad, the location of many of the town’s high-rise buildings, at that time, held by Ukrainian forces.

George Barros, Russia Team & Geospatial Intelligence Team Lead at ISW, told Sky News that Russian strategy in Pokrovsk has been to erode Ukrainian logistical capacity using drones and artillery over the course of several months.

“After denying supply lines and degrading the frontline forces by essentially cutting them off from behind and starving them out in their positions, then the Russians move forward with their infantry and frontal assaults,” Barros explained.

Capture the flag

For a brief period, it looked as though Russian forces had captured Myrnohrad.

Videos posted on 13 November appeared to show a Russian flag flying over the Myrnohrad mine.

However, video posted the following day showed a Ukrainian drone shooting it down.

Both Russian and Ukrainian forces continue to fight for control of Myrnohrad, with videos posted on the 19 and 20 November showing Russian airstrikes on Ukrainian positions in the town, and Ukrainian drone strikes targeting Russian forces on foot.

While the exact numbers of Russian and Ukrainian forces in the area remains unclear, reports indicate that three key Russian units are active in Pokrovsk and Myrnohrad, and are advancing on the towns from the north and south.

A number of Ukrainian units remain inside the towns, including the 145th Assault regiment and the 32nd, 35th, 38th and 155th Brigades. Reports indicate that more Ukrainian units have been moved into surrounding areas to hold the withdrawal corridor open.

Sky News reached out to the Ukrainian brigades still in Myrnohrad, but they declined to comment, citing military regulations.

Strategic significance

Natia Seskuria, associate international security fellow at the Royal United Services Institute (RUSI), explained that the area is important for the Ukrainians to keep and the Russians to take because of its strategic position.

“Situated at a major road and rail intersection in Donetsk Oblast, Pokrovsk has functioned as a central artery for moving troops, equipment, and supplies to Ukrainian units deployed along the surrounding front.”

Russia “would gain a platform to redirect its offensive efforts toward Ukraine’s principal defensive urban centres… including Kramatorsk and Slovyansk,” Seskuria said.

Ukrainian and Russian soldiers in Pokrovsk have fought intensely and at close quarters over the last month.

In late October US-made Black Hawk helicopters containing specialist troops directed by Ukrainian military intelligence entered Pokrovsk to try to keep the town.

But as Russian troops advance, Myrnohrad is becoming the last stronghold of Ukrainian forces in the area.

Uncertain future

At least up until 12 November, there were still civilians living in Pokrovsk and Myrnohrad, despite strikes on buildings in both cities.

A post made on that day by the Donetsk state regional administration estimated 1,200 people remain living in Pokrovsk and 900 in Myrnohrad.

Evacuation is only possible with the help of the military or police, and it is not clear how many have evacuated in the 11 days since.

Barros of ISW says gaining Pokrovsk would increase Russia’s leverage at the negotiating table.

“If the Russians can successfully convince enough international leaders that, okay, the Russians took Pokrovsk, they’re going to take the next thing, and they’re going take the thing, so now let’s negotiate, then that is a strategic victory for the Russians.”

Production by Michelle Inez Simon, Visual Investigations Producer.

The Data x Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

World

Torrential rain triggers deadly flooding and landslides in Vietnam

Published

8 hours ago

November 23, 2025

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Torrential rain triggers deadly flooding and landslides in Vietnam

Torrential rain, flooding and landslides has left more than 100 people dead or missing in Vietnam.

Rainfall has exceeded 74.8in (1.9 metres) in some parts of central Vietnam over the past week.

The region is a major coffee production belt and home to popular beaches, but it is also prone to storms and floods.

Fatalities have been reported in Dak Lak province and the neighbouring Khanh Hoa province.

Footage has been released by local police of a dramatic rescue, involving a drone which airlifted a stranded man to safety from an island in the middle of the Serepok River, Dak Lak province.

The government estimates the flooding has cost the economy around 8.98 trillion dong (£260m).

More than 235,000 houses were flooded and nearly 80,000 hectares of crops were damaged, Vietnam’s disaster agency said.

On Thursday, VietnamNet newspaper said that a suspension bridge on Da Nhim River in Lam Dong province had been swept away.

Video footage posted online showed the bridge being swallowed by the river in just a few seconds.

Naval forces have been deployed to help stranded citizens in Khanh Hoa, the Vietnam News Agency reported, adding that floodwaters had reached record highs in many areas.

Photos shared in state media reports showed residents, including children, sitting on the roofs of flooded houses in Khanh Hoa, Gia Lai and Dak Lak provinces.

A seven-year-old girl was rescued late on Wednesday in Da Lat, the capital of Lam Dong province, after being buried by a landslide, the Nhan Dan newspaper reported.

The landslide, triggered by heavy rain, knocked down and buried part of the house where the girl was staying.

She was pulled out after an hour and a half and was taken to hospital with a broken leg, according to the report.

World

Several airlines cancel Venezuela flights after ‘hazardous situation’ warning

Published

8 hours ago

November 23, 2025

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Several airlines cancel Venezuela flights after 'hazardous situation' warning

Three international airlines have cancelled flights departing from Venezuela after a “potentially hazardous situation” warning.

The US Federal Aviation Administration (FAA) on Saturday issued an alert to airlines flying over the country, citing the “worsening security situation and heightened military activity in or around Venezuela“.

The US is poised to launch a new phase of operations related to the South American nation in the coming days, four US officials said.

The exact timing or scope of the operations, as well as whether President Donald Trump has made the final decision to act, have not yet been established.

Brazil’s Gol, Colombia’s Avianca and TAP Air Portugal cancelled their flights from the capital, Caracas, in north Venezuela, on Saturday, according to Flightradar24 and the official website of Simon Bolivar Maiquetia International Airport.

TAP Air Portugal confirmed it cancelled flights scheduled for Saturday and next Tuesday.

“This decision follows information issued by the United States aviation authorities, which indicates that safety conditions in Venezuelan airspace are not guaranteed,” the airline said.

The Trump administration has been considering Venezuela-related options to tackle what it has portrayed as President Nicolas Maduro’s role in supplying illegal drugs that have killed Americans.

Venezuela’s president has denied having any links to the illegal drug trade.

Mr Maduro, who is celebrating his 63rd birthday on Sunday and has been in power since 2013, has claimed Mr Trump is looking to oust him and that Venezuelan citizens and the military will rally against any such attempt.

Aeronautica Civil de Colombia said in a statement there were “potential risks” of flying in the Maiquetia area “due to the deterioration of security conditions and increased military activity in the region”.

Spain’s Iberia also said it was cancelling its flights to Caracas from Monday until further notice.

Reports of looming action have been growing in recent weeks as the US military has deployed forces to the Caribbean, amid heightened tensions with Venezuela. The Pentagon referred questions to the White House and the CIA declined to comment.

There has been a huge US military build-up in the region, including the US Navy’s largest aircraft carrier, USS Gerald R Ford, at least eight other warships, and F-35 aircraft.

The build-up in the Caribbean has been rumbling on for months, and Mr Trump has authorised covert CIA operations in Venezuela.

The US plans on Monday to designate the Cartel de los Soles, a Venezuela-based alleged criminal group, a foreign terrorist organisation for what the US sees as its role in importing illegal drugs into America, officials said.