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Rishi Sunak will reshuffle his cabinet this morning with Nadhim Zahawi set to be replaced as Conservative Party chair after he was sacked over his tax affairs, Sky News understands.

The prime minister has been under pressure to pick the right candidate as he struggles to draw a line under ‘Tory sleaze’ allegations – despite vowing to turn over a new leaf when he entered Number 10.

Allies of Boris Johnson have been touting him as a potential successor, but others have been calling for someone who can create a “positive headline” to help turn around the party’s fortunes in the polls.

The party chair is responsible for party administration and overseeing the Conservative Campaign Headquarters (CCHQ).

Here, Sky News looks at the potential runners and riders.

Boris Johnson

Boris Johnson

There has been speculation of a Johnson comeback after Jacob Rees-Mogg said he has “all the right attributes” to be party chairman.

The senior Tory MP and close ally of the former PM told GB News on Sunday: “He is charismatic, he rallies the troops. He’s a sort of fully-loaded Conservative. So I think that type of personality would be a very good one for a party chairman.”

However, others have warned such a move would be divisive, while Mr Rees-Mogg on Tuesday conceded the former prime minister’s return to the front bench is unlikely.

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Mr Rees-Mogg supported Boris Johnson right to the end of his tenure as prime minister

“I think he would be a brilliant chairman, but he’s not going to be chairman”, he told Sky News.

“The person who is going to be chairman needs to be someone who is close to the prime minister and also very charismatic.”

Paul Scully

paul scully

The Tory vice chair under Theresa May and deputy chair under Boris Johnson, minister for London Paul Scully is seen as someone with the right skills and experience to replace Mr Zahawi.

Ex-cabinet minister Theresa Villiers is among those endorsing him, telling Sky News: “Paul is a top campaigner. He has done brilliant work in this constituency and did very well when he was Deputy Chair at CCHQ.

“He knows how important it is to engage with minority ethnic groups and he also understands London which is a key electoral battleground.”

Justin Tomlinson

Justin Tomlinson is the Conservative MP for North Swindon, and has been an MP continuously since 6 May 2010.
Pic:Uk Parliament
Image:
Justin Tomlinson is the Conservative MP for North Swindon, and has been an MP continuously since 6 May 2010.
Pic:Uk Parliament

A relative outsider is the Conservative MP for North Swindon, Justin Tomlinson.

He was deputy chair during the successful Bexley by-election in December 2021 – the last by-election the Conservatives won.

Mr Tomlinson quit his position in July 2022 to help Kemi Badenoch launch her failed leadership bid, but prior to being an MP he ran a business supplying Conservative associations with their campaigning materials and is known to be something of a “campaigning geek” among colleagues.

One MP told Sky News: “With a general election looming, we need someone with a strong track record of campaigning and fundraising. Justin Tomlinson is probably the strongest campaigner we have.”

Another did not go as far as naming him but said he would do a “brilliant job” if picked as chairman.

Gillian Keegan

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‘No way to stop teacher strike’, says Education Secretary Gillian Keegan.

The current education secretary has also been tipped for the role.

In an article looking at Mr Zahawi’s potential successors, Paul Goodman, the editor of Conservative Home website, said: “Downing Street will want an appointment that creates a positive headline. It may take the view that the appointment of a woman will suit.”

The women in cabinet are Suella Braverman, Penny Mordaunt, Therese Coffey, Gillian Keegan, Kemi Badenoch, and Michelle Donelan.

Mr Goodman said: “The first is too senior, the second too ambitious, the third associated with Liz Truss and the fourth difficult though not impossible to move, given her pivotal role at education. Such an appointment would undoubtedly create a splash.”

Penny Mordaunt

Penny Mordaunt  arrives for a cabinet meeting in Downing street 
Pic:AP
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Penny Mourdant dropped out of the race to allow Rishi Sunak to become PM last year Pic:AP

Commons leader Penny Mordaunt is reportedly keen on replacing Mr Zahawi at CCHQ and is said to have pitched her credentials alongside Business Secretary Grant Shapps during last week’s cabinet away day.

Gavin Barwell, a Conservative peer and former chief of staff to Mrs May, said that while Mr Shapps has done the job before, Ms Mordaunt “is probably the best choice”.

He said in the run-up to the election the party chair needs to be an important figure who can communicate with media and has experience campaigning in marginal seats.

He told Times Radio: “When you look back at Rishi Sunak’s cabinet when he put it together, I felt Penny didn’t really get a role big enough to suit her talents, so this would give her a front and centre role in the run-up to the election.”

Priti Patel

Priti Patel during day three of the Conservative Party annual conference at the International Convention Centre in Birmingham. Picture date: Tuesday October 4, 2022.
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Priti Patel is currently on the backbenches

A popular figure on the right of the party and well-liked among the Tory grassroots, Priti Patel is among the high-profile names tipped to replace Mr Zahawi.

While she has previously turned down the role, sources close to the former home secretary have not ruled out her return to the cabinet, according to the Telegraph.

Lee Anderson

Undated file handout UK Parliament official portrait of Lee Anderson, the Tory MP elected in 2019 for the Red Wall seat of Ashfield, who has questioned the Prime Minister's integrity as he withdrew support for Boris Johnson. Issue date: Wednesday July 6, 2022.
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Lee Anderson was part of the Red Wall intake in the 2019 election

Red Wall MP Lee Anderson has also been named as someone who could replace Mr Zahawi.

Marco Longhi, the Conservative MP for Dudley North, put a poll on Twitter asking who agrees with him that Mr Anderson “would make a great chairman of the Conservative Party”.

While more than 72% of those who responded voted no, Mr Longhi suggested the hard left had got hold of the poll and the results show “how worried they would be”.

However, it is unlikely Mr Anderson would be given the role.

The Ashfield MP has been outspoken on issues like foodbank usage and Channel crossings and last week compared the government to “the band on the Titanic”, according to leaked WhatsApp messages seen by Sky News.

William Hague

Lord William Hague is now the chair of William and Kate's charity. Pic: AP
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William Hague has distanced himself from becoming party chair

After Mr Zahawi’s sacking, rumours swirled that former Tory leader William Hague could make a return to frontline politics by filling the vacancy.

But Lord Hague, who is a close ally of Mr Sunak, quickly shut down that speculation.

“Since I’ve seen reports of people placing bets on me being the new party chairman, please be aware that I will absolutely not be returning to politics in any shape or form, including that one,” he said.

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Stock markets suffer sharp drops after Donald Trump announces sweeping tariffs

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Stock markets suffer sharp drops after Donald Trump announces sweeping tariffs

Stock markets around the world fell on Thursday after Donald Trump announced sweeping tariffs – with some economists now fearing a recession.

The US president announced tariffs for almost every country – including 10% rates on imports from the UK – on Wednesday evening, sending financial markets reeling.

While the UK’s FTSE 100 closed down 1.55% and the continent’s STOXX Europe 600 index was down 2.67% as of 5.30pm, it was American traders who were hit the most.

Trump tariffs latest: US stock markets tumble

All three of the US’s major markets opened to sharp losses on Thursday morning.

A person works on the floor at the New York Stock Exchange in New York, Monday, March 31, 2025. Pic: AP
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The S&P 500 is set for its worst day of trading since the COVID-19 pandemic. File pic: AP

By 8.30pm UK time (3.30pm EST), The Dow Jones Industrial Average was down 3.7%, the S&P 500 opened with a drop of 4.4%, and the Nasdaq composite was down 5.6%.

Compared to their values when Donald Trump was inaugurated, the three markets were down around 5.6%, 8.7% and 14.4%, respectively, according to LSEG.

More on Donald Trump

Worst one-day losses since COVID

As Wall Street trading ended at 9pm in the UK, two indexes had suffered their worst one-day losses since the COVID-19 pandemic.

The S&P 500 fell 4.85%, the Nasdaq dropped 6%, and the Dow Jones fell 4%.

It marks Nasdaq’s biggest daily percentage drop since March 2020 at the start of COVID, and the largest drop for the Dow Jones since June 2020.

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The latest numbers on tariffs

‘Trust in President Trump’

White House press secretary Karoline Leavitt told CNN earlier in the day that Mr Trump was “doubling down on his proven economic formula from his first term”.

“To anyone on Wall Street this morning, I would say trust in President Trump,” she told the broadcaster, adding: “This is indeed a national emergency… and it’s about time we have a president who actually does something about it.”

Later, the US president told reporters as he left the White House that “I think it’s going very well,” adding: “The markets are going to boom, the stock is going to boom, the country is going to boom.”

He later said on Air Force One that the UK is “happy” with its tariff – the lowest possible levy of 10% – and added he would be open to negotiations if other countries “offer something phenomenal”.

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How is the world reacting to Trump’s tariffs?

Economist warns of ‘spiral of doom’

The turbulence in the markets from Mr Trump’s tariffs “just left everybody in shock”, Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, told Reuters.

He added that the economy could go into recession as a result, saying that “a lot of the pain, will probably most acutely be felt in the US and that certainly would weigh on broader global growth as well”.

Meanwhile, chief investment officer at St James’s Place Justin Onuekwusi said that international retaliation is likely, even as “it’s clear countries will think about how to retaliate in a politically astute way”.

He warned: “Significant retaliation could lead to a tariff ‘spiral of doom’ that could be the growth shock that drags us into recession.”

Read more:
Do Trump’s ‘Liberation Day’ tariff numbers add up?

Tariffs about something more than economics: power

It comes as the UK government published a long list of US products that could be subject to reciprocal tariffs – including golf clubs and golf balls.

Running to more than 400 pages, the list is part of a four-week-long consultation with British businesses and suggests whiskey, jeans, livestock, and chemical components.

Meanwhile, Prime Minister Sir Keir Starmer said on Thursday that the US president had launched a “new era” for global trade and that the UK will respond with “cool and calm heads”.

It also comes as Canadian Prime Minister Mark Carney announced a 25% tariff on all American-imported vehicles that are not compliant with the US-Mexico-Canada trade deal.

He added: “The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.”

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Donald Trump announces sweeping global trade tariffs – including 10% on UK imports

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Donald Trump announces sweeping global trade tariffs - including 10% on UK imports

Donald Trump has announced a 10% trade tariff on all imports from the UK – as he unleashed sweeping tariffs across the globe.

Speaking at a White House event entitled “Make America Wealthy Again”, the president held up a chart detailing the worst offenders – which also showed the new tariffs the US would be imposing.

“This is Liberation Day,” he told a cheering audience of supporters, while hitting out at foreign “cheaters”.

Follow live: Trump tariffs latest

He claimed “trillions” of dollars from the “reciprocal” levies he was imposing on others’ trade barriers would provide relief for the US taxpayer and restore US jobs and factories.

Mr Trump said the US has been “looted, pillaged, raped, plundered” by other nations.

President Donald Trump holds a signed executive order during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)
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Pic: AP

His first tariff announcement was a 25% duty on all car imports from midnight – 5am on Thursday, UK time.

Mr Trump confirmed the European Union would face a 20% reciprocal tariff on all other imports. China’s rate was set at 34%.

The UK’s rate of 10% was perhaps a shot across the bows over the country’s 20% VAT rate, though the president’s board suggested a 10% tariff imbalance between the two nations.

It was also confirmed that further US tariffs were planned on some individual sectors including semiconductors, pharmaceuticals and critical mineral imports.

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Trump’s tariffs explained

The ramping up of duties promises to be painful for the global economy. Tariffs on steel and aluminium are already in effect.

The UK government signalled there would be no immediate retaliation.

Business and Trade Secretary Jonathan Reynolds said: “We will always act in the best interests of UK businesses and consumers. That’s why, throughout the last few weeks, the government has been fully focused on negotiating an economic deal with the United States that strengthens our existing fair and balanced trading relationship.

“The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today.

“We have a range of tools at our disposal and we will not hesitate to act. We will continue to engage with UK businesses including on their assessment of the impact of any further steps we take.

“Nobody wants a trade war and our intention remains to secure a deal. But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”

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Who showed up for Trump’s tariff address?

The EU has pledged to retaliate, which is a problem for Northern Ireland.

Should that scenario play out, the region faces the prospect of rising prices because all its imports are tied to EU rules under post-Brexit trading arrangements.

It means US goods shipped to Northern Ireland would be subject to the EU’s reprisals.

The impact of a trade war would be expected to be widely negative, with tit-for-tat tariffs risking job losses, a ramping up of prices and cooling of global trade.

Research for the Institute for Public Policy Research has suggested more than 25,000 direct jobs in the UK car manufacturing industry alone could be at risk from the tariffs on car exports to the US.

The Society of Motor Manufacturers and Traders (SMMT) had said the tariff costs could not be absorbed by manufacturers and may lead to a review of output.

The tariffs now on UK exports pose a big risk to growth and the so-called headroom Chancellor Rachel Reeves was forced to restore to the public finances at the spring statement, risking further spending cuts or tax rises ahead to meet her fiscal rules.

Read more:
What do Trump’s tariffs mean for the UK?
The rewards and risks for US as trade war intensifies

A member of the Office for Budget Responsibility (OBR), David Miles, told MPs on Tuesday that US tariffs at 20% or 25% maintained on the UK for five years would “knock out all the headroom the government currently has”.

But he added that a “very limited tariff war” that the UK stays out of could be “mildly positive”.

He said: “There’s a bit of trade that will get diverted to the UK, and some of the exports from China, for example, that would have gone to the US, they’ll be looking for a home for them in the rest of the world.

“And stuff would be available in the UK a bit cheaper than otherwise would have been. So there is one, not central scenario at all, which is very, very mildly potentially positive to the UK. All the other ones which involve the UK facing tariffs are negative, and they’re negative to very different extents.”

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Israel announces military operation expanding in Gaza to seize ‘large areas’

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Israel announces military operation expanding in Gaza to seize 'large areas'

Israel is beginning a major expansion of its military operation in Gaza and will seize large areas of the territory, the country’s defence minister said.

Israel Katz said in a statement that there would be a large scale evacuation of the Palestinian population from fighting areas.

In a post on X, he wrote: “I call on the residents of Gaza to act now to remove Hamas and return all the hostages. This is the only way to end the war.”

He said the offensive was “expanding to crush and clean the area of terrorists and terrorist infrastructure and capture large areas that will be added to the security zones of the State of Israel”.

The expansion of Israel’s military operation in Gaza deepens its renewed offensive.

The ceasefire between Israel and Hamas that had begun in January ended in March as Israel launched various air strikes on targets across Gaza.

The deal had seen the release of dozens of hostages and hundreds of Palestinian prisoners, but collapsed before it could move to phase two, which would have involved the release of all hostages and the withdrawal of Israeli forces from Gaza.

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26 March: Anti-Hamas chants heard at protest in Gaza

The Israel Defense Forces (IDF) had already issued evacuation warnings to Gazans living around the southern city of Rafah and towards the city of Khan Yunis, telling them to move to the al Mawasi area on the shore, which was previously designated a humanitarian zone.

Israeli forces have already set up a significant buffer zone within Gaza, having expanded an area around the edge of the territory that had existed before the war, as well as a large security area in the so-called Netzarim corridor through the middle of Gaza.

This latest conflict began when Hamas launched an attack on Israel on 7 October 2023, killing around 1,200 people and taking around 250 hostages.

The ensuing Israeli offensive has killed more than 50,000 Palestinians, according to Gaza’s Hamas-run health ministry.

Read more:
Father demands protection after Gaza aid workers’ deaths
Anti-Hamas chants heard at rare protest in Gaza

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Bodies of aid workers found in Gaza

Aid group Doctors Without Borders warned on Wednesday that Israel’s month-long siege of Gaza means some critical medications are now short in supply and are running out, leaving Palestinians at risk of losing vital healthcare.

“The Israeli authorities’ have condemned the people of Gaza to unbearable suffering with their deadly siege,” said Myriam Laaroussi, the group’s emergency coordinator in Gaza.

“This deliberate infliction of harm on people is like a slow death; it must end immediately.”

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