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There is plenty of bemusement, irritation and anger in some quarters of the Conservative Party as to why Nadhim Zahawi is still in post. 

Revelations that the party chairman reportedly paid nearly £5m to HM Revenue and Customs (HMRC) to settle a tax dispute, and pay a penalty over around £27m of wealth on which he did not initially pay tax is, for some MPs, a closed case rather than something that needs further investigation.

As one minister pointed out to me on Wednesday, what really mattered here was not the conflict of interest of Mr Zahawi being the chancellor while he was in dispute with the HMRC or what the PM knew when.

What matters here is the naked optics of a cabinet minister receiving around £27m that he didn’t initially pay tax on when people were struggling to make ends meet.

So while the prime minister on Wednesday spoke of following “due process” in determining whether the cabinet minister had broken the ministerial code, the public is more likely to have decided Mr Zahawi had not followed due process of paying his taxes – as they have to do every year – and drawn their own conclusions.

For his part, Mr Zahawi is clear that it was a “careless” error, the tax he owed was paid and the matter settled.

But the sight of Sir Keir Starmer taking easy shots at the prime minister for not asking Mr Zahawi to stand aside over the whole affair was hard for some to stomach.

More on Nadhim Zahawi

Many MPs have concluded the party chairman is going to have to stand down over this affair anyway, and the investigation into the matter by the PM’s independent ethics advisor is only drawing out the pain.

“Many people in the party think that the situation is unsustainable and will only end one way,” is how one senior party figure put it to me on Wednesday.

“The point here is that the public sees a minister with £27m who didn’t pay his tax.”

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Rishi Sunak answers Zahawi question at PMQs

There are myriad explanations as to why Mr Sunak hasn’t sacked Mr Zahawi.

His team argues that the prime minister promised to do things properly and “there is a process to follow”.

He is also in a bit of a bind given that he neither sacked nor suspended Deputy Prime Minister Dominic Raab over the eight bullying allegations he is now under investigation over, so it would have been hard to treat Mr Zahawi differently.

There is also chatter that he doesn’t have the authority just to sack the party chairman without a fight or backlash, and instead has to do it following a procedure.

But the situation is causing problems.

Read more:
No 10 confirms Rishi Sunak has never paid tax penalty

What did Nadhim Zahawi do?

Nadhim Zahawi arrives at the Conservative Party head office
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Nadhim Zahawi arrives at the Conservative Party head office

‘Job too big’ for Sunak

Sir Keir used it to reiterate his “weak prime minister” attack line on Wednesday and then went further to suggest that the combination of internal scandals and the problems in the NHS is evidence that the “job is too big” for Mr Sunak.

For a prime minister who has styled himself as a competent technocrat getting on with delivering, this is a very uncomfortable jibe that he will not want to stick.

It also calls into question the prime minister himself, both over his promise to lead a government of integrity and his own tax affairs.

Sir Keir was at it again on Wednesday, goading the prime minister over last year’s revelations that his wife Akshata Murty had in the past avoided tax in the UK by claiming non-dom status.

“We all know why [the PM’s] reluctant to ask his chairman about family affairs and tax avoidance,” remarked Sir Keir to the clear discomfort of the man sitting opposite him in the chamber.

Keir Starmer PMQs
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Sir Keir Starmer has used the Zahawi row to say Mr Sunak is incompetent

Conflict over tax affairs

One former senior minister told me they think it’s difficult for the PM to sack someone over tax affairs when his family had its own tax scandal last year and thinks Number 10 is keeping Mr Zahawi in place as a “human shield” to avoid the attention shifting to the PM’s tax affairs.

But the questions are now being directed to Mr Sunak’s door after he was forced to confirm publicly that he had never paid a penalty to the taxman over his own tax affairs.

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For the PM’s part, he might well believe the inquiry by his independent ethics advisor is the right way to handle the situation. But his approach means he is also having to field the political blows and burn through his own political capital over a scandal that many in his party think will end with Mr Zahawi having to resign anyway.

“When this sort of thing happens, there’s only one outcome and it’s just a matter of when,” one former cabinet minister told me this week.

A PM then prolonging the pain for him, his chairman and his party, as his reputation for integrity and competence takes another hit.

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Los Angeles protests: Mayor imposes curfew ‘to stop the looting’ as police make 197 arrests

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Los Angeles protests: Mayor imposes curfew 'to stop the looting' as police make 197 arrests

The mayor of Los Angeles has announced that a curfew will be in force overnight, as officials attempt to “stop the vandalism and stop the looting”.

Karen Bass says the restrictions will be in force in downtown areas of the city from 8pm to 6am local time (4am to 2pm UK time) – and will likely be repeated in the coming days.

She confirmed that a local emergency had been declared as “we reached a tipping point”, with 23 businesses looted on Monday night.

Ms Bass said “graffiti is everywhere”, with “significant damage” to properties as a result of the protests.

Workers try to remove graffiti after a protest over immigration raids. ICE Pic: AP/Damian Dovarganes
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Workers try to remove graffiti after a protest over immigration raids. ICE Pic: AP/Damian Dovarganes

Members of law enforcement stand guard in downtown LA. Pic: Reuters/Leah Mills
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Members of law enforcement stand guard in downtown LA. Pic: Reuters/Leah Millis

A protester marches past businesses being boarded up. Pic: Reuters/Leah Millis
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A protester marches past businesses being boarded up. Pic: Reuters/Leah Millis

Jim McDonnell, the chief of the Los Angeles Police Department, described the curfew as a “necessary measure to protect lives” after “unlawful and dangerous behaviour” had been escalating in the last few days.

On Tuesday alone, 197 arrests were made by the force, and he warned anyone violating the curfew without a valid reason would be detained.

Residents, people who are homeless, those travelling to and from work, credited media as well as public safety and emergency personnel, will be exempt from the curfew, according to Mr McDonnell.

More on Los Angeles

The curfew covers a one square mile (2.59 square kilometre) section of downtown LA that includes the area where protests have happened since Friday. The city of Los Angeles encompasses roughly 500 square miles (2,295 square kilometres).

Workers board up a store in Santa Ana. Pic: AP/Jae C. Hong
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Workers board up a store in Santa Ana. Pic: AP/Jae C. Hong

California National Guard soldiers stand at a federal agency building. Pic: AP
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California National Guard soldiers stand at a federal agency building. Pic: AP

Protesters are detained by law enforcement near the federal building in downtown LA. Pic: AP/Eric Thayer
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Protesters are detained by law enforcement near the federal building in downtown LA. Pic: AP/Eric Thayer

The protests are in response to raids carried out by the US Immigration and Customs Enforcement agency (ICE).

US President Donald Trump has activated 4,000 National Guard troops – the federal reserve force – to protect ICE officers carrying out raids as well as federal buildings in LA, despite objections by California Governor Gavin Newsom, who called the deployments unnecessary, illegal and politically motivated.

Mr Trump also sent 700 Marines, who are expected to start operating in the LA area on Wednesday, according to the US Northern Command.

Read more from Sky News:
Eyewitness: Furious immigrants vow to ‘defend’ LA
What we know about the LA immigration raids and protests
Explainer: Who is Gavin Newsom?

The Ronald Reagan Federal Building and Courthouse in Santa are boarded up. Pic: Mindy Schauer/The Orange County Register via AP
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The Ronald Reagan Federal Building and Courthouse in Santa are boarded up. Pic: Mindy Schauer/The Orange County Register via AP

National Guard troops are lined up to protect a federal building in downtown LA. Pic: AP/Eric Thayer
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National Guard troops are lined up to protect a federal building in downtown LA. Pic: AP/Eric Thayer

State officials said Mr Trump’s response was an extreme overreaction to mostly peaceful demonstrations, with California senators Adam Schiff and Alex Padilla saying the domestic mobilisation of active-duty military personnel should only happen “during the most extreme circumstances, and these are not them”.

Mr Trump defended his decision in a speech to soldiers at the Army base in Fort Bragg, North Carolina, on Tuesday, saying his administration would “liberate Los Angeles”.

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Trump: ‘We will liberate Los Angeles’

“Generations of Army heroes did not shed their blood on distant shores only to watch our country be destroyed by invasion and third-world lawlessness,” Mr Trump said.

“What you’re witnessing in California is a full-blown assault on peace, on public order and on national sovereignty, carried out by rioters bearing foreign flags.”

A protester is arrested by law enforcement officers in downtown LA. Pic: AP/Eric Thayer
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A protester is arrested by law enforcement officers in downtown LA. Pic: AP/Eric Thayer

California Highway Patrol officers clash with protesters in LA. Pic: AP/Eric Thayer
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California Highway Patrol officers clash with protesters in LA. Pic: AP/Eric Thayer

Gavin Newsom launched a blistering response in an address on Tuesday evening, saying the deployment of the National Guard without consulting Californian officials was a “brazen abuse of power by a sitting president”.

He said it “enflamed a combustible situation, putting our people, our officers and even our National Guard at risk”.

“That’s when the downward spiral began. He doubled down on his dangerous National Guard deployment by fanning the flames even harder – and the president, he did it on purpose,” Mr Newsom said.

Newsom takes the fight to Trump

California Governor Gavin Newsom’s televised address to the nation felt presidential as he took the fight to the man in the Oval Office, with a series of scorching put downs.

He made a compelling case that Donald Trump’s extraordinary decision to send troops to LA against his wishes had put the country on the brink of authoritarianism.

He spoke the day after the Pentagon announced 700 Marines were being deployed to join 4,000 National Guard troops ordered to the streets of LA by Trump.

But there has been no evidence so far that local law enforcement is being overwhelmed by the size or might of this resistance movement.

The head-to-head between Trump and Newsom is a compelling one.

The governor is known to harbour presidential ambitions for 2028 and is something of a MAGA bogeyman.

Newsom presides over a blue state, the biggest in the country, and is growing his brand with a podcast and – now – Trump has effectively put him in the national spotlight by bringing this political battle to his door.

The governor accused Mr Trump of choosing escalation and “theatrics over public safety”, as the situation was “winding down” before the president deployed the federal reserve force.

Mr Newsom added: “When Donald Trump sought blanket authority to commandeer the National Guard, he made that order apply to every state in this nation.

“This is about all of us, this is about you. California may be first, but it clearly won’t end here; other states are next. Democracy is next. Democracy is under assault before our eyes.”

A man holds a Mexican flag, which has become synonymous with solidarity for migrants targeted in the raids. Pic: AP/Damian Dovarganes
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A man holds a Mexican flag, which has become synonymous with solidarity for migrants targeted in the raids. Pic: AP/Damian Dovarganes

A protester holds up a placard while marching through downtown LA. Pic: Reuters/Leah Millis
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A protester holds up a placard while marching through downtown LA. Pic: Reuters/Leah Millis

People protest against the ongoing immigration raids in Washington, D.C. Pic: AP/Julia Demaree Nikhinson
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People protest against the ongoing immigration raids in Washington, D.C. Pic: AP/Julia Demaree Nikhinson

Homeland Security said on Monday that ICE had arrested 2,000 immigration offenders per day recently, which significantly exceeds the 311 daily average in the fiscal year 2024 under former president Joe Biden.

The protests over the immigration raids have started to spread across the US, with demonstrations in cities like Seattle, Austin, Chicago and Washington, D.C.

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Dozens more killed near food distribution centre in Gaza, claims Hamas-run health ministry

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Dozens more killed near food distribution centre in Gaza, claims Hamas-run health ministry

At least 36 people were killed and 208 wounded when Israeli forces fired towards crowds near a food distribution centre in Gaza on Tuesday morning, according to the Hamas-run territory’s health ministry.

Footage supplied to Sky News shows people shouting and screaming as they flee explosions in the distance.

Dead and wounded people can be seen being carried away from the scene while thick smoke billows into the air.

The incident is the latest in a series of reports of Palestinians being killed by Israeli gunfire near one of the distribution centres operated by a new organisation which is permitted by the IDF to hand out aid in the territory.

Palestinians run from explosions as they made their way to a food distribution centre
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Palestinians run from explosions as they made their way to a food distribution centre

One man seen in the footage says: “We want to live, we want to eat. We have children and wives. We want to live in our homes. Three years of war, bodies ripped apart, all this, for some flour.”

Humanitarian aid workers and experts have warned Israel’s blockade of Gaza and its military campaign has pushed the besieged enclave to the brink of famine.

Around 160 people have been killed in shootings near aid sites run by the new Israel and US-backed organisation, the health ministry has said.

Thick smoke rises into the air after explosions
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Thick smoke rises into the air after explosions

The Gaza Humanitarian Foundation, which runs the sites, said there has been no violence in or around the distribution centres themselves.

However, it has warned people to stay on designated access routes and paused delivery last week while it held talks with Israel’s military on improving safety.

Smoke rises from Gaza after an explosion. Pic: Reuters
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Smoke rises from Gaza after an explosion. Pic: Reuters

Israel’s military said in a statement its forces fired warning shots at suspects who were advancing and posed a threat to troops “despite warnings that the area is an active combat zone”.

It said it was aware of reports several people had been injured but its initial inquiry suggests the number “does not align with the information held” by the Israeli military.

“The warning shots were fired hundreds of metres from the aid distribution site, prior to its opening hours and toward the suspects who posed a threat to the troops,” it said, adding that the details are under review.

The government media office of Hamas said: “In a new crime added to the bloody record of the ‘Israeli’ occupation, the number of victims of the ‘Israeli-American aid distribution centres’ since Tuesday morning rose to 36 martyrs and more than 208 injuries, bringing the total number of victims of the ‘Israeli-American aid distribution centres’ to 163 martyrs and 1,495 injuries, all of whom are starving civilians seeking a living under siege and starvation.”

Read more:
Sanctioning of ministers adds to Israel’s growing ostracisation over Gaza and West Bank

Israeli government ministers sanctioned

It comes as the UK government sanctioned two Israeli government ministers due to their “repeated incitements of violence against Palestinian civilians”, the Foreign Office said.

The UK imposed sanctions on Itamar Ben-Gvir and Bezalel Smotrich alongside Australia, Canada, New Zealand and Norway.

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They are being sanctioned in their personal capacities and are now subject to a freeze on UK assets and director disqualifications, and banned from entering the country.

The sanctions were criticised by US secretary of state Marco Rubio who said on X: “These sanctions do not advance US-led efforts to achieve a ceasefire, bring all hostages home, and end the war.”

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‘Genocide in Gaza’ is the real story

Greta Thunberg accuses Israel of ‘illegal act’

Earlier in the day Greta Thunberg accused Israel of committing “an illegal act” after the Gaza-bound aid boat she was on was seized by the country’s military and she was deported to France.

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‘Dark day’ in Austria as 10 people are killed in school shooting

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'Dark day' in Austria as 10 people are killed in school shooting

Students and adults are among 10 victims who were killed after a gunman opened fire at a secondary school in the Austrian city of Graz.

Interior minister Gerhard Karner said earlier that a further 12 people were injured in the shooting at the BORG Dreierschützengasse high school in Austria’s second-biggest city.

However Mr Karner gave the figure before it was confirmed that a person in hospital with life-threatening injuries had become the 10th person to die. It is not clear if this reduces the number of those injured to 11.

The interior minister also said the suspect was a former pupil of the school who didn’t finish his studies.

Police have said the 21-year-old Austrian gunman was found dead in the toilets of the school after the shootings and was operating alone.

As it happened: 10 killed in Austria school shooting

Authorities say he had two weapons, reported to be a shotgun and a pistol, which he appeared to have owned legally.

More from UK

Police have said they did not have information about his possible motive.

Meanwhile, investigators have found a farewell letter at the house of the suspect, the Kronen newspaper in Austria reports.

Police officers stand guard near a school following a deadly school shooting in Graz, Austria.
Pic: Reuters
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Police officers stand guard near a school following a deadly school shooting in Graz, Austria.
Pic: Reuters

A man places a candle at the entrance to a school after a deadly shooting, in Graz, Austria. Pic: AP Photo
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A man places a candle at the entrance to the school after the deadly shooting, in Graz, Austria. Pic: AP Photo

Footage shared online revealed how gunshots and screaming could be heard after the gunman entered the school before opening fire.

French education minister Elisabeth Borne has said that one of those who died was a “young fellow citizen” of France.

It came as the mother of a child who survived the shooting retold the distressing moment she received a phone call from her son.

“My son called me to say he was in school and that he was being shot and that he thought he was going to die,” she said.

“I’ve only found out now, two hours later, that he’s still alive.”

Read more:
What we know about the shooting so far

A police officer makes a phone call in front of a school building after a shooting Graz, Austria. Pic: AP
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A police officer makes a phone call in front of a school building after the shooting. Pic: AP

Police officers attend the scene of a shooting at a school in Graz, Austria.
Pic: AP
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Police officers at the scene. Pic: AP

Special forces were among those sent to the school, just under a mile from Graz’s historic centre, after a call at 10am local time (9am UK time).

Around an hour and half later, police wrote on X that the school had been evacuated and everyone had been taken to a safe meeting point.

Police deployed in large numbers, with emergency vehicles guarding the area around the school and with at least one police helicopter flying above.

Graz, Austria’s second-biggest city, is located in the southeast of the country and about 300,000 live there.

A ‘dark day’

Austrian Chancellor Christian Stocker said there would be three days of national mourning, with the Austrian flag lowered to half-mast and a national minute of mourning at 10am on Wednesday (9am BST).

He said that it was “a dark day in the history of our country”.

President Alexander Van der Bellen said that “this horror cannot be captured in words”.

“These were young people who had their whole lives ahead of them. A teacher who accompanied them on their way,” he said.

Police officers stand guard near a school following a deadly school shooting in Graz, Austria.
Pic: Reuters
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Police officers stand guard near a school following a deadly school shooting in Graz, Austria.
Pic: Reuters

Rescue service personnel attend the scene of a shooting at a school in Graz, Austria
Pic: AP
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Pic: AP

Well-wishers later lit candles and placed them in the main square in Graz city centre on Tuesday night as a tribute to the shooting victims.

People were seen quietly reflecting as the city tried to come to terms with the deadly attack.

The school where the attack took place had earlier posted a message on Instagram following the tragedy.

The message is written in German, the official language of Austria, and translates in English to: “It was a really terrible day that deeply impacted and affected us all.

“Let us continue to stand together as a school community and support one another.

“Your teachers and your principal.”

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