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.
Image: Sir Laurie Magnus
“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’
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“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.
“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.”
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0:33
Zahawi in July 2022: ‘I’ve always declared my taxes’
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.
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0:38
PM took ‘decisive action’ on Zahawi, says Gove
“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.”
Sky News analysis shows that aid distributions by the Gaza Humanitarian Foundation (GHF) are associated with a significant increase in deaths.
Warning: This article contains descriptions of people being killed and images of blood on a hospital floor.
The US and Israeli-backed group has been primarily responsible for aid distribution since Israel lifted its 11-week blockade of the Gaza Strip last month.
The GHF distributes aid from four militarised Secure Distribution Sites (SDSs) – three of which are in the far south of the Gaza Strip. Under the previous system, the UN had distributed aid through hundreds of sites across the territory.
According to Gaza’s health ministry, 600 Palestinians have been killed while seeking aid from GHF sites, which charities and the UN have branded “death traps”.
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The UN put the figure at 410, but has not updated this number since 24 June. Both the UN and health ministry source their figures from hospitals near the aid sites.
Speaking to Sky News, GHF chief Johnnie Moore disputed that these deaths were connected with his organisation’s operations.
“Almost anything that happens in the Gaza Strip is going to take place in proximity to something,” he said.
“Our effort is actually working despite a disinformation campaign, that is very deliberate and meant to shut down our efforts.
“We just want to feed Gazans. That’s the only thing that we want to do.”
However, new analysis by Sky’s Data & Forensics Unit shows that deaths in Gaza have spiked during days with more GHF distributions.
On days when GHF conducts just two distributions or fewer, health officials report an average of 48 deaths and 189 injuries across the Gaza Strip.
On days with five or six GHF distributions, authorities have reported almost three times as many casualties.
Out of 77 distributions at GHF sites between 5 June and 1 July, Sky News found that 23 ended in reports of bloodshed (30%).
At one site, SDS4 in the central Gaza Strip, as many as half of all distributions were followed by reports of fatal shootings.
Sky News spoke to one woman who had been attending SDS4 for 10 days straight.
“I witnessed death first-hand – bodies lay bleeding on the ground all around me,” says Huda.
“This is not right. Food should be delivered to UN warehouses, and this entire operation must be shut down.”
Image: Huda told Sky News that she has been trying to obtain aid from SDS4, in the central Gaza Strip, for the past 10 days
Huda says that the crowds are forced to dodge bombs and bullets “just to get a bag of rice or pasta”.
“You may come back, you may not,” she says. “I was injured by shrapnel in my leg. Despite that, I go back, because we really have nothing in our tent.”
One of the deadliest incidents at SDS4 took place in the early hours of 24 June.
According to eyewitnesses, Israeli forces opened fire as people advanced towards aid trucks carrying food to the site, which was due to open.
“It was a massacre,” said Ahmed Halawa. He said that tanks and drones fired at people “even as we were fleeing”. At least 31 people were killed, according to medics at two nearby hospitals.
Footage from that morning shows the floor of one of the hospitals, al Awda, covered in blood.
The IDF says it is reviewing the incident.
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15:58
Doctor’s final moments revealed
Issues of crowd control
Unnamed soldiers who served near the aid sites told Israeli newspaper Haaretz that they were instructed to use gunfire as a method of crowd control.
An IDF spokesperson told Sky News that it “strongly rejected” the accusations that its forces were instructed to deliberately shoot at civilians.
“To be clear, IDF directives prohibit deliberate attacks on civilians,” the spokesperson said, adding that the incidents are “being examined by the relevant IDF authorities”.
Eyewitness testimony and footage posted to social media suggest that crowd control is a frequent problem at the sites.
The video below, uploaded on 12 June, shows a crowd rushing into SDS1, in Gaza’s far southwest. What sounds like explosions are audible in the background.
Footage from the same site, uploaded on 15 June, shows Palestinians searching for food among hundreds of aid parcels scattered across the ground.
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Sam Rose, the director of UNRWA operations in Gaza, describes the distribution process as a “free-for-all”.
“What they’re doing is they’re loading up the boxes on the ground and then people just rush in,” he says.
Sky News has found that the sites typically run out of food within just nine minutes. In a quarter of cases (23%), the food is finished by the time the site was due to officially open.
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27:55
Doctors on the frontline
Confusing communications
Sky News analysis suggests that the issue may be being compounded by poor communications from GHF.
Between 19 June and 1 July, 86% of distributions were announced with less than 30 minutes’ notice. One in five distributions was not announced at all prior to the site opening.
The GHF instructs Palestinians to take particular routes to the aid centres, and to wait at specified locations until the official opening times.
The map for SDS1 instructs Palestinians to take a narrow agricultural lane that no longer exists, while the maps for SDS2 and SDS3 give waiting points that are deep inside IDF-designated combat zones.
The maps do not make the boundaries of combat zones clear or specify when it is safe for Palestinians to enter them.
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The same is true for SDS4, the only distribution site outside Gaza’s far south. Its waiting point is located 1.2 miles (2km) inside an IDF combat zone.
The official map also provides no access route from the northern half of Gaza, including Gaza City, across the heavily militarised Netzarim corridor.
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“They don’t know what they’re doing,” says UNRWA’s Sam Rose.
“They don’t have anyone working on these operations who has any experience of operating, of administering food distributions because anyone who did have that experience wouldn’t want to be part of it because this isn’t how you treat people.”
Once the sites are officially open, Palestinians are allowed to travel the rest of the way.
The distance from waiting point to aid site is typically over a kilometre, making it difficult for Palestinians to reach the aid site before the food runs out.
The shortest distance is at SDS4 – 689m. At a pace of 4km per hour, this would take around 10 minutes to cover.
But of the 18 distributions at this site which were announced in advance, just two lasted longer than 10 minutes before the food ran out.
“We don’t have time to pick anything up,” says Huda, who has been visiting SDS4 for the past 10 days.
In all that time, she says, all she had managed to take was a small bag of rice.
“I got it from the floor,” she says. “We didn’t get anything else.”
More than 200 charities and non-governmental organisations have called for the closure of GHF and the reinstatement of previous, UN-led mechanisms of aid distribution.
In a joint statement issued on 1 July, some of the world’s largest humanitarian groups accused the GHF of violating international humanitarian principles. They said the scheme was forcing two million people into overcrowded, militarised zones where they face daily gunfire.
Additional reporting by OSINT producers Sam Doak and Lina-Serene.
The Data and 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.
A red shipping container sits on the tarmac of Sierra Leone’s Queen Elizabeth II Quay, under swinging cranes and towering stacks of similar steel boxes.
This one will likely be parked at the port permanently. The contents are suspected to be the ingredients of kush, the deadly synthetic drug ravaging Sierra Leone.
Sky News was given access to the container two weeks after it was seized.
“Preliminary testing has shown that these items are kush ingredients,” says the secretary of the Ports Authority, Martin George, as he points to the marked contraband in massive multicoloured Amazon UK bags and a large blue vat of strongly smelling acetone.
He adds: “Shipped from the United Kingdom.”
The container was selected for screening based on its origin. The UK is with the EU and South America on the list of places considered high risk for the import of illicit substances fuelling the drug trade in Sierra Leone and the region.
Kush has shaken this part of West Africa to its core – not just Sierra Leone but Liberia, Guinea, Guinea-Bissau and the Gambia. It is highly addictive, ever-evolving and affordable.
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The sprayed grey-green marshmallow leaves are rolled in a joint like marijuana and are extremely dangerous. Samples of the drug tested by researchers contained nitazens, one of the deadliest synthetic drugs in the world.
“It was a shock to find them in around half of the kush samples we tested, as at that point there was no public evidence they had reached Africa,” says Lucia Bird Ruiz-Benitez de Lugo from Global Initiative Against Transnational Organised Crime (GI-TOC) who independently tested kush from Sierra Leone.
“Nitazenes are among the deadliest drugs available on retail drug markets across the world – with one nitazene in kush in Freetown being 25 times stronger than fentanyl,” she added.
The shocking effects of its potency can be seen on the bodies of young men and women around Freetown. Teenagers with sores eating away at their legs, unable to walk. Mothers who smoked during pregnancy carrying sickly rash-covered infants. Young men drooling from the intense high and slumped over while still standing.
They are not the fringes of Sierra Leonean society but a growing demographic of kush users searching for an escape. People riddled by poverty and unemployment, living in the dark corners of a capital city which has endured a brutal civil war and Ebola epidemic in the last three decades alone.
An entire community of men and women of all ages is held together by kush addiction under a main road that cuts through the heart of Freetown.
They call themselves the “Under de Bridge family” and live in the shadows of the overpass, surrounded by the sewage and rubbish discarded by their neighbours.
One of them tells us the harsh conditions drive him to keep smoking kush even after losing more than 10 friends to the drug – killed by large infected sores and malnutrition.
Nearby, 17-year-old Ibrahim is pained by growing sores and says the drug is destroying his life.
“This drug is evil. This drug is bad. I don’t know why they gave me this drug in this country. Our brothers are suffering. Some are dying, some have sores on their feet. This drug brings destruction,” he says.
“Look at me – just because of this drug. I have sores on my feet.”
Across a stream of sewage, a young mother expecting her second child cries from fear and anguish when I ask her about the risk of smoking while pregnant.
“Yes, I know the risk,” Elizabeth says, nodding.
“I’ll keep smoking while I live here but I have nowhere else to go. It helps me forget my worries and challenges.”
Life under the bridge is disrupted from its sleepiness by a yell. A plain-clothed police officer is chasing a child accused of selling kush.
The lucrative industry is absorbing all age groups and spreading rapidly to nearby countries – even passing through three different borders to reach the smallest nation in mainland Africa, The Gambia.
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2:53
Police hunt for kush dealers in West Africa
Gambian law enforcement has cracked down on spreading kush use with regular zero tolerance drug raids. The small population is extremely vulnerable and the country is yet to open its first rehabilitation centre. Rising xenophobia seems to be mostly directed at Sierra Leonean immigrants who they blame for smuggling kush into the country.
We spoke to one man from Sierra Leone who was arrested for dealing kush in The Gambia and spent a year in prison. He says that though he feels saddened other Sierra Leoneans are being alienated as a result of the trade he was involved in, he has no remorse for “following orders”.
“Do I feel guilty for selling it? No, I don’t feel guilty. I’m not using my money to buy the kush, people always give me money to get kush for them,” he tells Sky News anonymously.
“I needed a job. I needed to take care of my son.”
Gambia’s hardline approach has been credited with driving its local kush industry underground rather than eradicating it but is still hailed as the most impactful strategy in the region. Sierra Leone’s government told Sky News it needs help from surrounding countries and the UK to tackle the sprawling crisis.
Transnational crime experts like Lucia Bird Ruiz-Benitez de Lugo see the rise of kush as part of a global synthetic drugs network that requires a multi-national response.
“Coordinated action is urgently needed across the supply chain, particularly focused on nitazenes – the deadliest kush component,” says Ms Bird.
“Our research indicated that kush components are being imported to West Africa from countries in Asia and Europe, likely including the UK. All countries in the supply chain bear responsibility to act to mitigate the devastating and expanding impacts of kush across West Africa, a region with scarce resources to respond.”
Sky News’ Africa correspondent wins award
Yousra Elbagir has been named a winner of the International Women’s Media Foundation 2025 Courage in Journalism Awards.
She has chronicled the current war in Sudan, which has displaced more than 13 million people, including her own family.
Recently, Elbagir led the only television news crew to document the fall of Goma – the regional capital of eastern Democratic Republic of the Congo – to M23 rebels backed by Rwanda.
In the past year, her reports from the frontlines of Sudan’s war have broadcast massive scenes of devastation inside a global humanitarian crisis.
She said: “Our job as journalists is to reveal the truth and inform the public. Sometimes, it’s about exposing the misdeeds of the powerful. Other times, it’s about capturing the scale and depth of human suffering. Our job is also getting more difficult: Information wars and contempt for legacy media is growing by the day, which makes our job even more important.”
Elbagir added: “It is an honour to receive the IWMF Courage Award and join the ranks of such incredible women journalists. The courage to share the truth in our polarised world is at the heart of public service journalism and to be recognised for it is truly affirming – it gives me faith that people are listening.”
It is raising new concerns in the global players’ union about whether the stars of the sport are being protected in hot and humid conditions.
FIFPRO has asked FIFA to allow cooling breaks every 15 minutes rather than just in the 30th minute of each half.
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There’s also a request for half-time to be extended from 15 to 20 minutes to help lower the core temperature of players.
FIFPRO’s medical director, Dr Vincent Gouttebarge, said: “There are some very challenging weather conditions that we anticipated a couple of weeks ago already, that was already communicated to FIFA.
“And I think the past few weeks were confirmation of all worries that the heat conditions will play a negative role for the performance and the health of the players.”
Football has seemed focused on players and fans baking in the Middle East – but scorching summers in Europe and the US are becoming increasingly problematic for sport.
Image: England are the tournament’s defending champions. Pic: AP
While climate change is a factor, the issue is not new and at the 1994 World Cup, players were steaming as temperatures rose in the US.
There is now more awareness of the need for mitigation measures among players and their international union.
FIFPRO feels football officials weren’t responsive when it asked for kick-off times to be moved from the fierce afternoon heat in the US for the first 32-team Club World Cup.
FIFA has to balance the needs of fans and broadcasters with welfare, with no desire to load all the matches in the same evening time slots.
Electric storms have also seen six games stopped, including a two-hour pause during a Chelsea game at the weekend.
This is the dress rehearsal for the World Cup next summer, which is mostly in the US.
Image: Players are also feeling the heat at the Club World Cup. Pic: AP
The use of more indoor, air conditioned stadiums should help.
There is no prospect of moving the World Cup to winter, as Qatar had to do in 2022.
And looking further ahead to this time in 2030, there will be World Cup matches in Spain, Portugal and Morocco. The temperatures this week have been hitting 40C (104F) in some host cities.
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1:08
Wildfires erupt in Italy and France amid heatwave
FIFA said in a statement to Sky News: “Heat conditions are a serious topic that affect football globally.
“At the FCWC some significant and progressive measures are being taken to protect the players from the heat. For instance, cooling breaks were implemented in 31 out of 54 matches so far.
“Discussions on how to deal with heat conditions need to take place collectively and FIFA stands ready to facilitate this dialogue, including through the Task Force on Player Welfare, and to receive constructive input from all stakeholders on how to further enhance heat management.
“In all of this, the protection of players must be at the centre.”