Rishi Sunak says he acted ‘decisively’ in sacking Nadhim Zahawi following tax affairs row
Rishi Sunak has insisited he acted “decisively” in sacking Nadhim Zahawi as chairman of the Conservative Party after a row over his tax affairs.
Speaking in Country Durham at the launch of his government’s emergency care plan, the prime minister defended his handling of situation and stressed his commitment to “integrity” and the need to follow proper processes.
“What I have done is follow a process, which is the right process,” he said.
“Integrity is really important to me – all of you guys want to see that government is run properly, that it is run with integrity and there’s accountability when people don’t behave in the way that they should or if something doesn’t go right, and that’s what we’ve done.”
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Mr Sunak also promised he would “take whatever steps are necessary to restore the integrity back into politics”.
“The things that happened before I was prime minister, I can’t do anything about,” the prime minister said.
“What I think you can hold me to account for is how I deal with the things that arise on my watch.
“And as you’ve seen, you know, when it came to Nadhim Zahawi, I asked the independent adviser to look at it straight away, acted on his findings straight away.
“That should give you some confidence that these things matter to me, and that I will take whatever steps are necessary to restore the integrity back into politics, and you can have confidence that the process works.”
Mr Zahawi was sacked as Tory party chairman on Sunday after an ethics inquiry into the handling of his tax affairs found a “serious breach” of the ministerial code.
Mr Sunak had resisted earlier calls from opposition parties to fire Mr Zahawi following reports that he had paid a penalty as part of an estimated £4.8m settlement dispute with HMRC.
But following the conclusion of an inquiry into the matter by his new ethics adviser Sir Laurie Magnus – which found that Mr Zahawi had “shown insufficient regard for the general principles of the ministerial code” – Mr Sunak swiftly removed the former Tory chairman from his post.
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Zahawi sacked over tax row
Critics of Mr Sunak have said he should have acted sooner in dismissing Mr Zahawi.
But the prime minister said it was on the basis of the facts contained in Sir Laurie’s report released on Sunday morning that he was “able to make a very quick decision that it was no longer appropriate for Nadhim Zahawi to continue in government”.
The PM’s official spokesperson reiterated to reporters on Monday that Mr Zahawi’s tax penalty was not disclosed to Mr Sunak upon his appointment.
Read more:
Who is Nadhim Zahawi? The politician sacked over his tax affairs?
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Yesterday, Labour’s deputy leader Angela Rayner and chairwoman Anneliese Dodds wrote to Mr Sunak asking him to give the public “full transparency” about what he knew about the investigation into Mr Zahawi’s tax affairs and when.
Ms Dodds described Mr Sunak as “weak” for not sacking Mr Zahawi “when this murky affair first surfaced”.
Ms Rayner added: “Rishi Sunak shouldn’t have needed an ethics adviser to tell him that Nadhim Zahawi’s position was untenable, but instead he continued to prop up the man he appointed to cabinet.”
Speaking to Sky News earlier today, shadow international trade secretary Nick Thomas-Symonds suggested the PM could have been lying about what he knew about Mr Zahawi’s tax affairs.
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‘PM must come clean on Zahawi’
Asked whether he believed Mr Sunak has lied about what he knew of the matter, Mr Thomas-Symonds replied: “How could the prime minister not have known about the fact of the investigation when Mr Zahawi declared it in July?”
The row surrounding Mr Zahawi had centred 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”.
Liberal Democrat deputy leader Daisy Cooper has called on Mr Sunak to withdraw the Conservative whip from Mr Zahawi “if he refuses to stand down as an MP” as he is “simply not fit to represent his constituents”.
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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”.
Speaking to Sky News on Monday, health minister Helen Whately said she thought the PM followed a “fair” process when deciding to sack the former Conservative party chairman.
A nine-year-old girl found dead in Weston-super-Mare has been named on the day police revealed a teenager had been charged with her murder.
Emergency services were called to Lime Close in the Somerset town at 6.09pm on Monday but Aria Thorpe was pronounced dead at the scene.
Police said a 15-year-old boy had been charged with her murder and that a preliminary post-mortem found she died from a single stab wound.
The teenage boy – who can’t be named due to his age – will appear at Bristol Magistrates’ Court later today.
A police cordon remains in place as forensics officers continue their work.
Flowers and tributes have been left at the scene. Pic: PA
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Superintendent Jen Appleford, from Avon and Somerset Police, said the community was in shock and Aria’s family were being supported by police.
“It is impossible to adequately describe how traumatic the past 36 hours have been for them and we’d like to reiterate in the strongest possible terms their request for privacy,” she said.
Supt Appleford said police were working with local schools and other agencies to make sure support is available.
Britain loves chocolate.
We’re estimated to consume 8.2kg each every year, a good chunk of it at Christmas, but the cost of that everyday luxury habit has been rising fast.
Whitakers have been making chocolate in Skipton in North Yorkshire for 135 years, but they have never experienced price pressures as extreme as those in the last five.
“We buy liquid chocolate and since 2023, the price of our chocolate has doubled,” explains William Whitaker, the real-life Willy Wonka and the fourth generation of the family to run the business.
William Whitaker, managing director of the company
“It could have been worse. If we hadn’t been contracted [with a supplier], it would have trebled.
“That represents a £5,000 per-tonne increase, and we use a thousand tonnes a year. And we only sell £12-£13m of product, so it’s a massive effect.”
Whitakers makes 10 million pieces of chocolate a week in a factory on the much-expanded site of the original bakery where the business began.
Automated production lines snake through the site moulding, cutting, cooling, coating and wrapping a relentless procession of fondants, cremes, crisps and pure chocolate products for customers, including own-brand retail, supermarkets, and the catering trade.
Steepest inflation in the business
All of them have faced price increases as Whitakers has grappled with some of the steepest inflation in the food business.
Cocoa prices have soared in the last two years, largely because of a succession of poor cocoa harvests in West Africa, where Ghana and the Ivory Coast produce around two-thirds of global supply.
A combination of drought and crop disease cut global output by around 14% last year, pushing consumer prices in the other direction, with chocolate inflation passing 17% in the UK in October.
Skimpflation and shrinkflation
Some major brands have responded by cutting the chocolate content of products – “skimpflation” – or charging more for less – “shrinkflation”.
Household-name brands including Penguin and Club have cut the cocoa and milk solid content so far they can no longer be classified as chocolate, and are marketed instead as “chocolate-flavour”.
Whitakers have stuck to their recipes and product sizes, choosing to pass price increases on to customers while adapting products to the new market conditions.
“Not only are major brands putting up prices over 20%, sometimes 40%, they’ve also reduced the size of their pieces and sometimes the ingredients,” says William Whitaker.
“We haven’t done any of that. We knew that long-term, the market will fall again, and that happier days will return.
“We’ve introduced new products where we’ve used chocolate as a coating rather than a solid chocolate because the centre, which is sugar-based, is cheaper than the chocolate.
“We’ve got a big product range of fondant creams, and others like gingers and Brazil nuts, where we’re using that chocolate as a coating.”
The costs are adding up
A deluge of price rises
Brazil nuts have enjoyed their own spike in price, more than doubling to £15,000 a tonne at one stage.
On top of commodity prices determined by markets beyond their control, Whitakers face the same inflationary pressures as other UK businesses.
“We’ve had the minimum wage increasing every year, we had the national insurance rise last year, and sort of hidden a little bit in this budget is a business rate increase.
“This is a small business, we turn over £12m, but our rates will go up nearly £100,000 next year before any other costs.
“If you add up all the cocoa and all the other cost increases in 2024 and 2025, it’s nearly £3m of cost increases we’ve had to bear. Some of that is returning to a little normality. It does test the relevance of what you do.”
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