Nadhim Zahawi sacked: What Sir Laurie Magnus found in his tax row probe

Published

2 years ago

January 29, 2023

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Nadhim Zahawi’s failure to disclose that he was in discussions with HMRC over his taxes was a “serious failure to meet” ministerial standards, a damning report into the affair has found.

Sir Laurie Magnus, who carried out the investigation as the prime minister’s new ethics adviser, said the former chancellor “should have understood” from the outset that he was under investigation by HMRC and that it was a “serious matter”.

He also criticised the MP for Stratford-on-Avon for failing to correct the record for more than six months, after he dismissed reports that HMRC was “looking into” his tax affairs as “smears” during a July 2022 interview with Sky News’s Kay Burley.

Mr Zahawi was sacked as Tory party chairman on Sunday by Prime Minister Rishi Sunak following the publication of Sir Laurie’s report, which looked into whether the former minister had fallen foul of the ministerial code.

Here Sky News looks at the key points in Sir Laurie’s report:

‘Mr Zahawi should have understood this was a serious matter’

“Mr Zahawi has told me that he had formed the impression that he and his advisers were merely being asked certain queries by HMRC concerning his tax affairs, and that this impression persisted until he received a letter from HMRC on 15 July 2022.

“On the basis of the confidential information to which I have had access, including correspondence between HMRC and Mr Zahawi personally, I consider that an individual subject to the HMRC process faced by Mr Zahawi should have understood at the outset that they were under investigation by HMRC and that this was a serious matter.”

‘Investigation was a relevant matter for a minister to declare’

“I consider that an HMRC investigation of the nature faced by Mr Zahawi would be a relevant matter for a Minister to discuss and declare as part of their declaration of interests.

“I would expect a Minister to inform their Permanent Secretary and to seek their advice on any implications for the management of their responsibilities.

Politics news – latest: Zahawi attacks media after sacking

“I would likewise expect a Minister proactively to update their declaration of interests form to include details of such an HMRC process.”

‘Mr Zahawi’s failure to declare investigation did not meet ministerial standards’

“After his appointment as Chancellor on 5 July 2022, Mr Zahawi completed a declaration of interests form which contained no reference to the HMRC investigation.

“A later form acknowledged (by way of an attachment) that Mr Zahawi was in discussion with HMRC to clarify a number of queries.

“Only following receipt of HMRC’s letter received on 15 July 2022, did Mr Zahawi update his declaration of interests form to acknowledge that his tax affairs were under investigation, but he provided no further details other than the statement made previously that he was clarifying queries.

“Given the nature of the investigation by HMRC, which started prior to his appointment as Secretary of State for Education on 15 September 2021, I consider that by failing to declare HMRC’s ongoing investigation before July 2022 – despite the ministerial declaration of interests form including specific prompts on tax affairs and HMRC investigations and disputes – Mr Zahawi failed to meet the requirement to declare any interests which might be thought to give rise to a conflict.”

‘Mr Zahawi failed to declare HMRC investigation ended in penalty’

“The subsequent fact that the investigation concluded with a penalty in relation to the tax affairs of a Minister also requires declaration and discussion.

“It is a relevant interest which could give rise to a conflict, and particularly so in the case of HM Treasury Ministers and the Chancellor of the Exchequer, who has responsibility for the UK tax system.

“As a result of my inquiries, I conclude that Mr Zahawi failed to update his declaration of interest form appropriately after this settlement was agreed in principle in August 2022.

“It was not until mid-January 2023 that details of the earlier HMRC investigation and its outcome were declared.”

‘Omissions constitute a serious failure to meet ministerial standards’

“I also conclude that, in the appointments process for the governments formed in September 2022 and October 2022, Mr Zahawi failed to disclose relevant information – in this case the nature of the investigation and its outcome in a penalty – at the time of his appointment, including to Cabinet Office officials who support that process.

“Without knowledge of that information, the Cabinet Office was not in a position to inform the appointing Prime Minister.

“Taken together, I consider that these omissions constitute a serious failure to meet the standards set out in the Ministerial Code.”

Nadhim Zahawi’s interview with Sky News in July 2022

What Mr Zahawi said:

“There have been news stories over the last few days which are inaccurate, unfair and are clearly smears. It’s very sad that such smears should be circulated and sadder still that they have been published.

“These smears have falsely claimed that the Serious Fraud Office, the National Crime Agency, and HMRC are looking into me. Let me be absolutely clear. I am not aware of this. I have not been told that this is the case.

“I’ve always declared my financial interests and paid my taxes in the UK. If there are questions, of course, I will answer any questions HMRC has of me.”

What Sir Laurie said about the statement:

“Mr Zahawi has told me that at the time of this statement, he was under the impression that he was answering HMRC’s queries, but that he was not under investigation.

“I consider that an individual subject to the HMRC process faced by Mr Zahawi should have understood that they were under investigation by HMRC and that this was a serious matter.

“Under the Ministerial Code, Ministers have a duty to ‘be as open as possible with Parliament and the public’.

“Whilst this duty clearly does not extend to disclosing personal tax information, it does include a general duty to be accurate in statements to ensure a false impression is not given or maintained.

“Mr Zahawi did not correct the record until 21 January 2023, when Mr Zahawi’s public statement indicated that he had reached a settlement with HMRC following an investigation.

“I consider that this delay in correcting an untrue public statement is inconsistent with the requirement for openness.”

‘Insufficient regard for Ministerial Code’

“I consider that Mr Zahawi, in holding the high privilege of being a Minister of the Crown, has shown insufficient regard for the General Principles of the Ministerial Code and the requirements in particular, under the seven Principles of Public Life, to be honest, open and an exemplary leader through his own behaviour.

“I want to commend Mr Zahawi for his willingness to assist with my inquiry. I also fully appreciate the pressures faced by Ministers as they address the complex issues of government and the difficulties they encounter in balancing the demands of their personal lives and their ministerial responsibilities.

“These factors, however, cannot mitigate my overall judgement that Mr Zahawi’s conduct as a Minister has fallen below the high standards that, as Prime Minister, you rightly expect from those who serve in your government.”

World

Former UN chief’s labelling of Gaza war as ‘genocide’ marks extraordinary shift

Published

14 hours ago

May 30, 2025

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Former UN chief's labelling of Gaza war as 'genocide' marks extraordinary shift

In a stark and direct intervention, Martin Griffiths, the former UN humanitarian chief, has described the situation in Gaza as genocide.

The statement, made during an interview I conducted with Griffiths on The World, marks one of the most pointed accusations yet from a figure known to be deeply embedded in the world of international politics and diplomacy.

“I think now we’ve got to the point this is unequivocal. Of course it is genocide. Just as it is weaponising aid.

“We don’t need to look behind ourselves to see that’s the case. That should encourage us even more because we, of course, all doubted whether it would come to that level of definition.

“We all doubted whether famine is actually there. I think starvation is killing people. That’s bad enough. We don’t have to worry about famine, which is obviously there lurking in the shadows.

“Also, genocide… of course that’s what has happened. We only need to look at the statements made. Prime Minister Netanyahu has the virtue of being very clear about his objectives.”

His choice of words is extraordinary – not just for its gravity, but because it’s Griffiths who is saying it.

A veteran diplomat with decades of experience navigating complex international crises, Griffiths is known for his calm and thoughtful demeanour – not for inflammatory language.

For him to use the term “genocide” in a television interview signals a significant shift in how some within the international system are now interpreting events on the ground in Gaza – 20 months since Israel launched its war.

The timing is also noteworthy.

Just weeks earlier, Tom Fletcher, another respected former British ambassador and current UN humanitarian chief, came close to using the phrase during a UN Security Council session.

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He said: “What more evidence do you need now? Will you act decisively to prevent genocide and to ensure respect for international humanitarian law? Or will you say instead: ‘we did all we could?'”

Whilst he stopped short, his tone showed a clear change in how leading international figures now view the direction of Israeli military operations in Gaza; staggering civilian deaths, and the statements made by Israeli officials prosecuting this war.

Griffiths’ remarks now go a step further.

It comes as the British government continues to grapple with public anger over the mounting civilian toll – and faces growing scrutiny over its continued arms exports to Israel.

This latest statement by Griffiths doesn’t just reflect humanitarian concern.

As a former ambassador, he knows the weight his words carry.

And with the humanitarian crisis in Gaza worsening, his warning challenges Israel’s allies to ask deeply uncomfortable questions.

Lawyers representing Israel against accusations brought by South Africa to the International Court of Justice last year – accusing its actions in Gaza of amounting to genocide – called the claims “unfounded”, “absurd” and amounting to “libel”.

They went on to say Israel respected international law and had a right to defend itself.

World

More than 40% of Europe slides into drought, including pockets of Greece, southern Italy and Spain

Published

14 hours ago

May 30, 2025

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More than 40% of Europe slides into drought, including pockets of Greece, southern Italy and Spain

Well over a third of Europe, including parts of holiday destinations like Spain, Greece and Italy, are now in drought.

March was Europe’s warmest on record – a trend driven by climate change – and also saw below average rain across large parts of the north and east of the continent.

Now 41.2% of Europe finds itself in some form of drought, according to the latest update from the EU’s European Drought Observatory, which covers 11 to 20 May.

It is most acute in pockets of south-eastern Spain, Cyprus, Greece and Albania, where the strongest “alert” category has been issued, as well as parts of Poland and Ukraine.

But broad stretches of northern and eastern Europe through France, Germany, Poland and Ukraine also drying up, sowing concerns about crop yields.

On Thursday, the UK’s Environment Agency officially declared a drought in North West England after river and reservoir levels were licked away by a dry spring.

Greece tourism is ‘unsustainable’

In Greece, “overtourism” from millions flocking to its beaches adds further pressure to water supplies, said Nikitas Mylopoulos, professor of water resource management at Thessaly University.

“The tourist sector is unsustainable and there is no planning… leading to a tremendous rise in water demand in summer,” he told Sky News.

“The islands have an intense problem of drought and water scarcity.”

Islands like Santorini and Mykonos are now forced to ship in water from Athens or desalination plants to provide for showers and swimming pools. In the past, many residents could make do with local methods like rainwater harvesting.

But agriculture is a far bigger drain on the country’s water, with waste rife and policies lacking, said Prof Mylopoulos.

Wildfire season could be ‘particularly difficult’

This year’s hot and dry conditions are also fuelling the risk of yet another fierce wildfire season in Greece.

Last week civil protection minister Ioannis Kefalogiannis warned of a “particularly difficult” summer.

He said a record 18,000 firefighters have been deployed and the drone fleet almost doubled in a bid to combat fires being fuelled by a hotter climate.

Droughts and their causes are more complicated, but scientists at World Weather Attribution say global warming is exacerbating drought in some parts of the world, including around the Mediterranean.

They found the drought of 2022, which spread across the Northern Hemisphere, was made 20 times more likely by climate change.

The International Hydropower Association said drought and intense rain in Europe are pushing power plants to “operate at the limits of their existing equipment”.

Extreme weather costs the EU about €28.3bn (£23.8bn) in lost crops and livestock per year, according to insurance firm Howden.

Hayley Fowler, professor of climate change impacts at Newcastle University, said: “With global warming, we expect more prolonged and intense droughts and heatwaves punctuated by more intense rainfall, possibly causing flash floods.

“In recent years, we have experienced more of these atmospheric blocks, causing record heat and persistent drought, as well as severe flooding in other locations in Europe.

“Recent months have been no different, with prolonged dry conditions and heatwaves in northern Europe and floods in southern Europe.”

World

Nigeria floods: At least 117 dead as heavy flooding submerges thousands of houses

Published

17 hours ago

May 30, 2025

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Nigeria floods: At least 117 dead as heavy flooding submerges thousands of houses

At least 117 people have died and others are still missing after heavy flooding in Nigeria, an emergency official said.

Authorities initially said 21 people had died but this figure has today risen significantly.

Media reports quoting local government officials said a dam collapse has worsened the situation.

Ibrahim Hussaini, head of Niger State Emergency Management Agency, said some 3,000 houses were underwater in two communities.

Videos posted on social media show floodwater sweeping through neighbourhoods, with rooftops barely visible above the brown currents. One clip shows a tanker floating through a town.

The chairman of the Mokwa local government area suggested poor infrastructure has worsened the impact of the flooding.

Jibril Muregi has appealed to the government to start “long overdue” construction of waterways in the area under a climate resilience project.

In a similar occurrence last September, torrential rains and a dam collapse in Nigeria’s northeastern Maiduguri caused severe flooding, leaving at least 30 people dead and displacing millions.

Nigeria is prone to flooding during the rainy season, which began in April – and flooding is becoming more common and extreme as the climate warms.

Hotter air is thirstier and can hold more moisture – about 7% more for every 1C warmer – meaning it unleashes heavier flooding when it rains.

Violent rain, which killed hundreds of people in Nigeria during 2022, was made at least 80 times more likely and 20% more intense by climate change, analysis by World Weather Attribution found.