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

Published

3 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

Ukraine and Europe cannot reject Trump’s plan – they will play for time and hope he can still be persuaded to desert the Kremlin

Published

2 hours ago

November 22, 2025

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Ukraine and Europe cannot reject Trump's plan - they will play for time and hope he can still be persuaded to desert the Kremlin

“Terrible”, “weird”, “peculiar” and “baffling” – some of the adjectives being levelled by observers at the Donald Trump administration’s peace plan for Ukraine.

The 28-point proposal was cooked up between Trump negotiator Steve Witkoff and Kremlin official Kirill Dmitriev without European and Ukrainian involvement.

It effectively dresses up Russian demands as a peace proposal. Demands first made by Russia at the high watermark of its invasion in 2022, before defeats forced it to retreat from much of Ukraine.

Ukraine war latest: Kyiv receives US peace plan

Its proposals are non-starters for Ukrainians.

It would hand over the rest of Donbas, territory they have spent almost four years and lost tens of thousands of men defending.

Analysts estimate at the current rate of advance, it would take Russia four more years to take the land it is proposing simply to give them instead.

It proposes more than halving the size of the Ukrainian military and depriving them of some of their most effective long-range weapons.

And it would bar any foreign forces acting as peacekeepers in Ukraine after any peace deal is done.

The plan comes at an excruciating time for the Ukrainians.

They are being pounded with devastating drone attacks, killing dozens in the last few nights alone.

They are on the verge of losing a key stronghold city, Pokrovsk.

And Volodymyr Zelenskyy is embroiled in the gravest political crisis since the war began, with key officials facing damaging corruption allegations.

The suspicion is Mr Witkoff and Mr Dmitriev conspired together to choose this moment to put even more pressure on the Ukrainian president.

Perversely, though, it may help him.

There has been universal condemnation and outrage in Kyiv at the Witkoff-Dmitriev plan. Rivals have little choice but to rally around the wartime Ukrainian leader as he faces such unreasonable demands.

The genesis of this plan is unclear.

Was it born from Donald Trump’s overinflated belief in his peacemaking abilities? His overrated Gaza ceasefire plan attracted lavish praise from world leaders, but now seems mired in deepening difficulty.

The fear is Mr Trump’s team are finding ways to allow him to walk away from this conflict altogether, blaming Ukrainian intransigence for the failure of his diplomacy.

Mr Trump has already ended financial support for Ukraine, acting as an arms dealer instead, selling weapons to Europe to pass on to the invaded democracy.

If he were to take away military intelligence support too, Ukraine would be blind to the kind of attacks that in recent days have killed scores of civilians.

Europe and Ukraine cannot reject the plan entirely and risk alienating Mr Trump.

They will play for time and hope against all the evidence he can still be persuaded to desert the Kremlin and put pressure on Vladimir Putin to end the war, rather than force Ukraine to surrender instead.

World

Eurovision to change voting rules after claims of Israeli government ‘interference’

Published

2 hours ago

November 22, 2025

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Eurovision to change voting rules after claims of Israeli government 'interference'

The Eurovision Song Contest is changing its voting system, following allegations of “interference” by Israel’s government this year.

Israeli singer Yuval Raphael received the largest number of votes from the public in the contest in May, ultimately finishing as runner-up after the jury votes were counted.

But a number of broadcasters raised concerns about Israel’s result.

After the final, Irish broadcaster RTE requested a breakdown in voting numbers from contest organiser the European Broadcasting Union (EBU), while Spain’s public broadcaster, Radio Television Espanola (RTVE), called for a “complete review” of the voting system to avoid “external interference”.

In September, Dutch public broadcaster AVROTROS said it could no longer justify Israel‘s participation in the contest, due to the Israel-Hamas war in Gaza.

It went on to say there had been “proven interference by the Israeli government during the last edition of the Song Contest, with the event being used as a political instrument”. The statement did not elaborate on the means of “interference”.

Sky News has contacted the Israeli government for comment.

In early December, the EBU will hold its winter general assembly, with members due to consider the changes, and if not satisfied, vote on Israel’s participation.

Key changes to next year’s competition include:

• Clearer rules around promotion of artists and their songs
• Cap on audience voting halved
• The return of professional juries to semi-finals
• Enhanced security safeguards

Sanctions threat

The EBU said the tightening of rules around promotion was to “discourage disproportionate promotion campaigns… particularly when undertaken or supported by third parties, including governments or governmental agencies”.

It said that “any attempts to unduly influence the results will lead to sanctions”.

Contest director Martin Green said “no broadcaster or artist may now directly engage with or support campaigns by third parties – including governments or their agencies – that could distort the vote”.

He said the reduction in the number of votes that can be made online, or via SMS or phone call, from 20 to 10 was “designed to encourage more balanced participation”.

He said that “although the number of votes previously allowed did not unduly influence the results of previous contests, there were concerns expressed by participating broadcasters and fans alike”.

Professional juries in semi-finals – and younger jurors

It was also announced that professional juries in the semi-finals would be restored for the first time since 2022, with an expansion to the range of professions from which jurors can be chosen.

The EBU said this will give roughly 50-50 percentage weight between audience and jury votes.

At least two jurors aged 18-25 will be present in every jury, to reflect the appeal of the contest with younger audiences.

Also mentioned were enhanced technical safeguards designed to “protect the contest from suspicious or coordinated voting activity” and strengthen security systems that “monitor, detect and prevent fraudulent patterns”.

Politics making itself heard over Europop lyrics

Mr Green said that the neutrality and integrity of the competition is of “paramount importance” to the EBU, its members, and audiences, adding that the event “should remain a neutral space and must not be instrumentalised”.

A vocally apolitical event, world events have dominated Eurovision in recent years.

Russia was banned from the competition in 2022 following its invasion of Ukraine.

Israel has competed in Eurovision for more than 50 years and won four times, but there have been ongoing calls to block their participation over the conduct of Prime Minister Benjamin Netanyahu’s government in the Hamas-Israel war.

Israel denies targeting civilians in Gaza and has said it is being unfairly demonised abroad.

In September, Spain, the Netherlands, Ireland, Iceland, and Slovenia threatened to withdraw their participation in Eurovision unless Israel is excluded from the competition.

There were also demonstrations against Israel’s inclusion in Basel, Switzerland, when the 2025 competition took place.

‘Step in right direction’

Responding to the changes, Iceland’s official broadcaster RUV told Sky News they were “a step in the right direction”, and they would be discussing them with their “sister stations in the Nordic countries” ahead of the EBU meeting in December.

Ireland’s official broadcaster RTE told Sky News: “Clearly, events in the Middle East are unfolding day by day. As previously confirmed by the EBU, the issue of participation in the 2026 Eurovision Song Contest has been included on the agenda of the EBU Executive Board’s ordinary Winter General Assembly.”

Sky News has also contacted the official broadcaster for the Netherlands (AVROTROS), Spain (RTVE), Slovenia (RTVSLO), and Israel (Kan) for comment.

The chief executive of Kan, Golan Yochpaz, has previously said the event should not become political and that there is “no reason” why Israel should not be part of it.

Netanyahu praised Israeli entrant

Earlier this year, Israeli Prime Minister Benjamin Netanyahu told Israel’s 2025 Eurovision entrant Yuval Raphael she had brought the country “a lot of honour” after she finished in second place, adding “you’re the real winner. Statistically, it’s true… You entered the hearts of a huge portion of the public in Europe.”

The year before he told entrant Eden Golan: “I saw that you received almost the highest number of votes from the public and this is the most important thing, not from the judges but from the public, and you held Israel’s head up high in Europe.”

In October, a ceasefire deal was put in place, aimed at bringing an end to the two-year war in the Middle East.

The war began when Hamas stormed into Israel on October 7 2023, killing around 1,200 people and taking 251 hostage.

Israel invaded Gaza in retaliation, with airstrikes and ground assaults devastating much of the territory and killing more than 67,000, according to the Hamas-run health ministry.

Its figures do not differentiate between civilians and combatants, but it says around half of those killed were women and children.

The world’s largest live music event, next year’s contest will be held in Vienna, Austria, in May and will celebrate 70 years of Eurovision.

World

Gunmen kidnap more than 200 students from school in Nigeria

Published

2 hours ago

November 22, 2025

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Gunmen kidnap more than 200 students from school in Nigeria

Over 200 students have been kidnapped from a Catholic boarding school in western Nigeria – the second mass abduction in the country this week.

Gunmen took 215 students and 12 teachers from St Mary’s School in Agwara, Niger state, early on Friday, according to the Christian Association of Nigeria.

Daniel Atori, a spokesperson for the Niger state chapter of the association, said he met parents of the abducted children “to assure them that we are working with the government and security agencies to see that our children are rescued and brought back safely”.

St Mary’s is a secondary school that has students aged 12 to 17, but the institution is attached to an adjoining primary school with more than 50 classrooms and dormitory buildings.

Dauda Chekula, 62, said that four of his grandchildren, ranging in age from seven to 10, were among those abducted.

“We don’t know what is happening now, because we have not heard anything since this morning,” Mr Chekula said.

“The children who were able to escape have scattered, some of them ran back to their houses and the only information we are getting is that the attackers are still moving with the remaining children into the bush.”

On Monday, 25 schoolgirls were kidnapped from a boarding school in neighbouring Kebbi state, northwest Nigeria.

Police said men armed with rifles stormed the Government Girls Comprehensive Secondary School in the town of Maga at around 4am local time (3am UK time), arriving on motorcycles in an apparently well-planned attack.

Student escapes from kidnappers

A 15-year-old student who was among those abducted from the boarding school in Kebbi state’s Danko-Wasagu area managed to escape.

She said she found refuge at a teacher’s house.

It was not immediately clear who was to blame for either of the abductions.

Abubakar Usman, the secretary to the Niger state government, said in a statement that the latest kidnapping occurred despite a prior intelligence warning of heightened threats.

“Regrettably, St Mary’s School proceeded to reopen and resume academic activities without notifying or seeking clearance from the state government, thereby exposing pupils and the staff to avoidable risk,” it read.

A security staffer was “badly shot” during the early-morning attack on the school, the Catholic Diocese of Kontagora said.

Ransom demand for worshippers

Separately, gunmen attacked a church in Kwara state on Monday, killing at least two people.

A church official said 38 worshippers were also kidnapped by the gunmen, who have since issued a ransom demand of 100 million naira (£52,660) for each person.

Kebbi, Kwara and Niger states border one another.

The attacks have highlighted insecurity in Nigeria and forced President Bola Tinubu to postpone foreign trips.

At least 1,500 students have been abducted in the region since Boko Haram extremists seized 276 Chibok schoolgirls more than a decade ago.

No group has claimed responsibility for the attacks in Niger and Kebbi state, but analysts say gangs often target schools in kidnappings for ransom.

Nigeria was recently thrust into the spotlight after Donald Trump singled the country out, claiming that Christians are being persecuted – an allegation that the government rejected.