Sir Keir Starmer has suggested the job of prime minister is “too big” for a “hopelessly weak” Rishi Sunak as he attacked him for failing to sack Nadhim Zahawi.
At PMQs, the Labour leader asked if “any politician who seeks to avoid taxes they owe in the country is not fit to be in charge” of the UK finances – a reference to Mr Zahawi settling a seven-figure sum with HMRC, including a penalty, while he was chancellor.
“We all know why the prime minister was reluctant to ask his party chair questions about family finances and tax avoidance,” Sir Keir said – an apparent dig at the PM’s own tax affairs previously coming under scrutiny.
“But his failure to sack him when the whole country can see what’s going on shows how hopelessly weak he is – a prime minister overseeing chaos, overwhelmed at every turn.”
Referencing problems with public services, Sir Keir added: “He can’t say when ambulances will get to heart attack victims again. He can’t say when the prisons system will keep streets safe again. He can’t even deal with tax avoiders in his own cabinet.
“Is he starting to wonder if this job is just too big for him?”
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Mr Sunak accused Sir Keir of being a “hypocrite” for seeking to get him to sack his colleague rather than abide by the due process of the parliamentary investigation into Mr Zahawi’s tax affairs, which he said Labour had called for.
The PM said: “Of course, the politically expedient thing to do would be for me to have said that this matter must be resolved by Wednesday at noon.
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“But I believe in proper due process.”
Mr Sunak added that he did not know about the investigation into Mr Zahawi’s taxes when he appointed him to his cabinet in October.
On Sir Keir’s attack line he said: “It’s simple political opportunism and everyone can see through it.”
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6:50
Political editor Beth Rigby analyses PMQs.
Questions have swirled around Mr Zahawi’s tax affairs since the summer when claims emerged that he was being investigated by the Serious Fraud Office, the National Crime Agency and HM Revenue & Customs, accusations he deemed a “smear”.
The issue made headlines 10 days ago after The Sun on Sunday published an article claiming he had paid a seven-figure sum to the tax office to settle a dispute over the sale of his YouGov shares.
After a week of saying nothing more than his taxes “were and are fully up to date and are paid in the UK” – and publicly receiving the backing of Mr Sunak in last week’s PMQs – Mr Zahawi released a statement saying he had paid what HMRC said “was due” after it “disagreed about the exact allocation” of the shares.
The Tory chairman said this was a “careless and not a deliberate error” and did not confirm if any penalty was also levied. But Sky News understands that as part of the settlement with HMRC – thought to be around £4.8m – the chairman paid a penalty.
Zahawi ‘100% not resigning’
Mr Sunak has now asked his ethics adviser to carry out an inquiry into whether Mr Zahawi breached the ministerial code, and the investigation could extend into his prior tax arrangements and whether he lied to the media.
Speaking after PMQs, a Downing Street spokesperson said Mr Sunak still has full confidence in the senior Tory MP, who will be travelling to Chequers tomorrow for cabinet meetings.
They would not confirm if Mr Sunak would sack Mr Zahawi if he is found to have lied, saying they would not get into hypotheticals.
A source close to the former chancellor has told Sky’s political editor Beth Rigby he “100% is not resigning”.
In a statement on Monday, following the PM’s announcement of an investigation into the matter, Mr Zahawi said: “I am confident I acted properly throughout and look forward to answering any and all specific questions in a formal setting to Sir Laurie.”
There is so much confusion around any potential deal.
But most people here want their prime minister Benjamin Netanyahu to come to an agreement and get the captives back home.
We had a chance encounter with Yehuda Cohen.
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His 19-year-old son Nimrod Cohen, an Israeli soldier, was taken on 7 October.
Mr Cohen’s message to Israel’s leadership was simple – take a deal.
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Right now, however, he is not very hopeful.
“Nothing is moving, we will feel better when something will start moving, that a deal will be on the table, agreed and hostages will start being released,” he said.
Mr Cohen had particular criticism for Mr Netanyahu.
He said of the PM: “He has his own considerations, mainly his private considerations – he wants to survive, he’s thinking only about himself.”
Mr Cohen even challenged Mr Netanyahu in person a few weeks ago about whether a ceasefire would guarantee the release of all the hostages. He did not get an answer.
But she admits: “I’m afraid the deal won’t be done, so I don’t even let myself think about it.
“Until someone tells me – Simona, your daughter has come back, I don’t think about it.”
Seven months into this conflict, following Hamas’ killings and kidnappings, the latest talk of an agreement – however near or far it could be – simply provides no relief for so many hostage families.
Vladimir Putin has thanked soldiers “fighting for our motherland” in Ukraine – as he was sworn in as Russian president for a fifth time.
At a ceremony in the gilded Grand Kremlin Palace, Mr Putin placed his hand on the Russian constitution and vowed to defend it as a crowd of hand-picked dignitaries looked on.
An artillery salute marked the end of the official presidential inauguration, and as he left the palace to the sound of the Russian national anthem, a round of applause erupted from those in the audience.
Tuesday’s inauguration marks the start of another six years at the top for Mr Putin, 71.
He is already the Kremlin’s longest-serving leader since Joseph Stalin, having been in power for nearly two-and-a-half decades – 20 years as president, four as prime minister.
By the end of this term, only Catherine the Great will be ahead of him – she ruled Russia way back in the 18th century.
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His new term does not expire until 2030, when he will be constitutionally eligible to run again.
When he succeeded Boris Yeltsin in 1999, Russia was emerging from economic collapse.
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Under his leadership, most notably since the 2022 invasion of Ukraine, the country has become a pariah state that threatens global security, reliant on regimes like China, Iran and North Korea for support.
Russia’s enormous advantage in resources has gradually turned the tide in Ukraine in Moscow’s favour, but both sides have been suffering heavy casualties.
Following his widely-anticipated re-election in March, Mr Putin suggested a confrontation between NATO and Russia was possible, and he declared he wanted to carve out a buffer zone in Ukraine to protect his country from cross-border attacks.
With major changes at home and abroad over the past two years, Kremlin spokesman Dmitry Peskov said the circumstances do not make it more important to give the public the right to speak out.
“It needs tougher measures to ensure the victory, to ensure that we reach our goals,” he told Sky News, when asked if Russians should not have more say during a war.
He insisted that is a democratic stance in “the same circumstances Western media exists in Europe and the US” and denied Mr Putin has made the country a dictatorship.
“This is not the case absolutely, absolutely, it’s just propaganda, it’s rough propaganda, nothing else,” he added.
“So, we are living in our country, in our own environment and it’s purely democratic. We choose our power. We elect our power. We elect our president.”
As the country’s economy remains on a war footing, analysts say that, with another term in office secured, the Kremlin could take the unpopular steps of raising taxes to fund the war and pressure more men to join the military.
The repression that has characterised Mr Putin’s time in office continued when his greatest political foe, opposition leader Alexei Navalny, died in an Arctic penal colony in February.
Mr Peskov told Sky News opposition remains in the country, but added “of course the conditions are much more tough around here because we are in war conditions”.
Other prominent critics have either been imprisoned or have fled the country, and even some of his opponents abroad fear for their security.
Defiant and determined – Russia’s leader is in it for the long haul
The speech was vintage Vladimir – talking up Russia’s greatness, blaming the West for Moscow’s isolation and doubling down on his current path.
If there was any hope of him mellowing in this next term of office, President Putin dispelled that right at the beginning, referring to the security of the Russian people as a matter “above all”.
Translation – we’re in the confrontation with the West for the long haul.
But whose fault is it? Not ours, he said. All part of the Kremlin’s narrative to portray Russia as the victim.
What might concern western officials, is the tone of the speech, especially the last line: “We will realise everything we have planned, together we will win.”
With things going his way at home and on the battlefield, the Russian president appears increasingly confident, and increasingly defiant.
Laws have been promising long prison terms for anyone who discredits the military.
The Kremlin also targets independent media, rights groups, LGBTQ+ activists and others who do not adhere to what Mr Putin has emphasised as Russia’s “traditional family values”.
Sky News’ international affairs editor Dominic Waghorn said Mr Putin “has taken a country that was emerging from communism and economic collapse towards reform and reintegration into the international community, and he’s turned it in a pariah state threatening global security while he and his kleptocracy have stolen billions”.
He added: “In his inauguration speech, Putin said Russia stands united [but] an estimated 900,000 Russians have voted with their feet and left the country since his invasion of Ukraine.”
There are many in Israel who don’t believe Benjamin Netanyahu wants a new hostage deal, and they’re not just the families of those still being held in Gaza.
Such is the scepticism with which Israel’s prime minister is now regarded, a growing number of Israelis are starting to think their embattled leader wants to string out the fighting as long as possible as a means to remain in office.
Having spent much of Monday blaming Hamas for collapsing ceasefire talks, the group’s dramatic acceptance of a ceasefire proposal last night certainly threw the Israeli government.
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There are parties to these negotiations who will know if that is true or not: The CIA Director Bill Burns has spent much time in the Middle East over recent months and has been criss-crossing between Cairo, Doha and Tel Aviv over the past few days.
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He will be fully across each word of any proposal and how the language has shifted; he will know who is acting in good faith, and if either side isn’t.
The fact the Israeli war cabinet has agreed to send a negotiating team to Cairo today, something they didn’t do last week, shows they are taking this seriously, but the parallel move to send IDF troops into Rafah complicates matters.
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There are two opposing schools of thought here; one says that Netanyahu’s decision to keep fighting and attack Rafah shows he doesn’t want to halt the war, knowing that a ceasefire could very likely spell the end of his government if its right-wing allies resign in protest.
The other view is that Netanyahu has upped the military pressure on Hamas to achieve a hostage deal, just at the moment negotiations are reaching a decisive point.
To suggest Netanyahu is deliberately blocking a new deal “is like Hitler indicting Churchill” a source close to the prime minister texted me on Monday night.
When I asked if Hamas was “playing the PM”, I got laughter emojis back.
But an invasion of Rafah would be a final roll of the dice.
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1:18
Displaced people react to IDF’s evacuation warning
Sure, it remains the final unexplored bastion of Hamas in Gaza, but is it really the location of [Hamas leaders] Yahya Sinwar, Mohammed Deif and the remaining hostages and would a full-scale operation in Rafah finally achieve Israel’s outstanding objectives?
It’s a gamble, and if it doesn’t succeed, Netanyahu will be left with few places to turn.
This might be the best deal Netanyahu is going to get then, and he is now under pressure to decide.
If the US, Qatar, Egypt and Hamas all agree it’s a good deal, how can Bibi reject it without being seen as the one preventing the hostages from returning home?