Who is Nadhim Zahawi? The child refugee turned multimillionaire politician sacked over his tax affairs

Published

3 years ago

January 29, 2023

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He is a former child refugee who sold Teletubbies merchandise, founded the UK’s best known polling company and was a contender to be leader of the Conservative Party.

But Nadhim Zahawi’s rise through the echelons of Westminster has been brought to an abrupt halt after he was sacked as Tory chairman over his tax affairs.

So how did the 55-year-old rise to be the toast of the Tories before being told by Prime Minister Rishi Sunak he had committed a “serious breach of the ministerial code”.

Follow reaction to Nadhim Zahawi’s sacking – live updates

Early years

Mr Zahawi was born in Bagdad, Iraq, and spent his early years growing up as part of an influential Kurdish family.

His father was a well-known businessman and his grandfather was the governor of the Central Bank of Iraq.

But after Saddam Hussein came to power in 1979, the dictator began to target the Kurds.

“It was clear to my family Iraq would not be safe under his leadership and that is when we decided we had to flee to the UK,” Mr Zahawi told his local newspaper, the Stratford Herald.

He arrived in the UK aged 11, unable to speak a word of English, and began his new life by going to Holland Park School in London.

Soon, his family moved him from a comprehensive education to private school, and he studied at both Ibstock Place School, Roehampton, and then King’s College School, Wimbledon, both in southwest London.

However, as he was set to go off to university, an investment by his father went belly up and the family lost everything, except for their Vauxhall car.

Mr Zahawi used the vehicle to become a minicab driver to contribute to the family finances, but his mother insisted he carry on studying and pawned her jewellery to cover the costs.

So off he went to University College London to study chemical engineering.

Business endeavours

After graduating in 1988, it was the world of business he wanted to pursue and he sought to echo his father’s example as an entrepreneur.

Like his father, it didn’t always go right – his setting up of a firm that sold Teletubbies merchandise ended as a “costly and painful mistake”, he later said.

But it did attract the attention and investment of Lord Jeffrey Archer – who once described him as a “born organiser” – and opened doors to the senior ranks of the Conservative Party.

Mr Zahawi became an aide to Lord Archer and in return, the peer helped with his own campaign to become a Tory councillor, winning a seat in the London borough of Wandsworth in 1994.

There was also a failed attempt to enter Parliament in 1997, when he competed for the new seat of Erith and Thamesmead amid a Labour landslide.

He helped with Lord Archer’s London mayoral campaign in 1998 too, but it was brought to an early close when the peer pulled out of the race amid controversy.

It was the turn of the millennium that signalled another change in Mr Zahawi’s fortunes when, alongside another former aide of Lord Archer’s, Stephan Shakespeare, he founded polling company YouGov.

The business grew and grew, and within five years it was floated on the stock market valued at £18m.

He would later tell Sky News he was “the beneficiary of the British dream“.

According to the Evening Standard, Mr Zahawi cashed in £1.2m of shares in 2005, and went on to work as the firm’s CEO for a further five years.

But having made his fortune, he set his sights firmly back on the world of politics and, in 2010, he was elected as the MP for Stratford-upon-Avon.

Masters Of Nothing

A year later, with world still affected by the fallout from the 2008 recession, he co-authored a book with fellow MP Matt Hancock, titled Masters Of Nothing: How The Crash Will Happen Again Unless We Understand Human Nature.

He began to gain some recognition in the party, becoming part of the Number 10 policy unit advising the then prime minister David Cameron.

However, in this early part of his Commons career, he became more known to the public for his part in a 2013 expenses scandal, having claimed cash to power his horses’ stables.

It wasn’t until 2018 that Mr Zahawi was appointed into his first junior minister post – a parliamentary under secretary at the Department for Education – and a year later he was moved to the business department.

But he became a household name after COVID broke out in the UK and he was appointed by Boris Johnson to become the country’s vaccine minister, receiving widespread praise for his work in the Department of Health and Social Care to tackle the pandemic.

‘Do the right thing and go’

The performance propelled him to cabinet and in September 2021, he took his first secretary of state post, back in the Department for Education.

The chaos that ensued the following year as Mr Johnson’s downfall played out in public saw him pushed up the ranks again, replacing Rishi Sunak as chancellor in Number 11 after his dramatic resignation.

But two days later, Mr Zahawi joined the growing horde of ministers calling for the PM to step down, telling Mr Johnson: “You must do the right thing and go now.”

A vacancy was created at the top, and he threw his hat in the ring to become the next Tory leader and next prime minister.

Giving his first broadcast campaign interview to Sky News, Mr Zahawi promised that under his control, the government would reduce corporation tax, income tax and national insurance.

But the issue of his own finances was brought to the fore after reports his tax affairs had been investigated by the Serious Fraud Office, the National Crime Agency and HMRC.

‘I was clearly being smeared’

“I was clearly being smeared,” he told Kay Burley. “I’m not aware of this. I’ve always declared my taxes – I’ve paid my taxes in the UK. I will answer any questions HMRC has of me.

“But I will go further. I will make a commitment today, that if I am prime minister the right thing to do is publish my accounts annually. That is the right thing to do because we need to take this issue off the table.”

Mr Zahawi didn’t make it through the first round of balloting, and instead threw his backing behind Liz Truss.

He carried on in the Treasury until Ms Truss took the keys to Number 10, but was dealt a demotion in her cabinet, instead becoming Chancellor of the Duchy of Lancaster, minister for intergovernmental relations and minister for equalities.

As we know, this premiership was not to last long, and weeks later – under Rishi Sunak – Mr Zahawi was made chairman of the Tory Party.

A seven-figure sum

But those questions raised over the summer regarding his taxes were soon to resurface again.

In January 2023, The Sun On Sunday published a report claiming Mr Zahawi had paid a seven-figure sum to settle a dispute with HMRC over the sales of his YouGov shares.

Sky News made several attempts in the following days to get Mr Zahawi to confirm or deny the story, but his team refused, instead saying his tax affairs “were and are fully up to date and are paid in the UK”.

Mr Sunak stood by him during Prime Minister’s Questions that week, but by the weekend, the swirl of questions was growing by the hour.

‘Careless not deliberate error’

Mr Zahawi released a statement saying he paid what HMRC said “was due” after it “disagreed about the exact allocation” of shares in YouGov.

The Tory chairman said this was a “careless and not a deliberate error” and didn’t confirm if any penalty was also levied.

But Sky News understands that, as part of a settlement with HMRC, Mr Zahawi paid a penalty to the tax collector.

The exact size of the settlement has not been disclosed, but it is reported to be an estimated £4.8m including a 30% penalty.

Mr Sunak had ordered a potentially far-reaching investigation into Mr Zahawi to be conducted by the PM’s new ethics adviser Sir Laurie Magnus.

But the prime minister initally resisted calls to sack Mr Zahawi, saying he retained “confidence” in his colleague.

But in a letter published on Sunday morning, Mr Sunak said an ethics inquiry into the handling of his tax affairs found a “serious breach” of the ministerial code.

He added: “As a result, I have informed you of my decision to remove you from your position in His Majesty’s government.”

World

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

Published

6 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

6 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

6 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.