Who is Nadhim Zahawi? The child refugee turned multimillionaire politician sacked over his tax affairs
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.
Mr Zahawi became an MP at the 2010 election.
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.
As vaccines minister, Mr Zahawi became a household name.
‘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.
After failing to make it further in the Tory leadership contest, Mr Zahawi gave his backing to 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.
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Zahawi admits tax settlement
‘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
Body of missing rabbi Zvi Kogan found in UAE – as Israeli PM says he was murdered in ‘antisemitic terror incident’
The COP29 climate talks have reached a last ditch deal on cash for developing countries, pulling the summit back from the brink of collapse after a group of countries stormed out of a negotiating room earlier.
The slew of deals finally signed off in the small hours of Sunday morning in Azerbaijan includes one that proved hardest of all – one about money.
Eventually the more than 190 countries in Baku agreed a target for richer polluting countries such as the UK, EU and Japan to drum up $300bn a year by 2035 to help poorer nations both curb and adapt to climate change.
It is a far cry from the $1.3trn experts say is needed, and from the $500bn that vulnerable countries like Uganda had said they would be willing to accept.
But in the end they were forced to, knowing they could not afford to live without it, nor wait until next year to try again, when a Donald Trump presidency would make things even harder.
Bolivia’s lead negotiator Diego Pacheco called it an “insult”, while the Marshall Islands’ Tina Stege said it was “not nearly enough, but it’s a start”.
UN climate chief Simon Stiell said: “This new finance goal is an insurance policy for humanity, amid worsening climate impacts hitting every country.
“No country got everything they wanted, and we leave Baku with a mountain of work still to do. So this is no time for victory laps.”
The funding deal was clinched more than 24 hours into overtime, and against what felt like all the odds.
The talks were rocked from the start by the incoming presidency of climate denier Mr Trump, the moment Argentina’s team were recalled back to Buenos Aires by their right-wing president and a controversial letter that sent shockwaves through the United Nations.
Pic: AP
The fraught two weeks of negotiations pitted the anger of developing countries who are footing the bill for more dangerous weather that they did little to cause, against the tight public finances of rich countries.
A relieved Juan Carlos Monterrey Gomez, climate envoy for Panama, said there is “light at the end of the tunnel”.
Just hours ago, the talks almost fell apart as furious vulnerable nations stormed out of negotiations in frustration over that elusive funding goal.
They were also angry with oil and gas producing countries, who stood accused of trying to dilute aspects of the deal on cutting fossil fuels.
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Climate-vulnerable nations storm out of talks
The UN talks work on consensus, meaning everyone has to agree for a deal to fly.
A row over how to follow up on last year’s pledge to “transition away from fossil fuels” was left unresolved and punted into next year, following objections from Chile and Switzerland for being too weak.
A draft deal simply “reaffirmed” the commitment but did not dial up the pressure in the way the UK, EU, island states and many others here wanted.
Saudi Arabia fought the hardest against any step forward on cutting fossil fuels, the primary cause of climate change that is intensifying floods, drought and fires around the world.
Governments did manage to strike a deal on carbon markets at COP29, which has been 10 years in the making and will allow countries to trade emissions cuts.
‘Not everything we wanted’
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The UK’s energy secretary, Ed Miliband, said the deal is “not everything we or others wanted”, but described it as a “step forward”.
“It’s a deal that will drive forward the clean energy transition, which is essential for jobs and growth in Britain and for protecting us all against the worsening climate crisis,” he added.
“Today’s agreement sends the signal that the clean energy transition is unstoppable.
“It is the biggest economic opportunity of the 21st century and through our championing of it we can help crowd in private investment.”
Protesters at the summit in Baku. Pic: AP
Read more:
Azerbaijan president hails oil and gas as ‘gift from God’
UN climate summits ‘no longer fit for purpose’
The Azerbaijan team leading COP29 said: “Every hour of the day, we have pulled people together. Every inch of the way, we have pushed for the highest common denominator.
“We have faced geopolitical headwinds and made every effort to be an honest broker for all sides.”
At least 20 people have been killed and 66 injured in Israeli strikes on central Beirut, Lebanese authorities have said.
Lebanon‘s health ministry said the death toll could rise as emergency workers dig through the rubble looking for survivors. DNA tests are being used to identify the victims, the ministry added.
The attack destroyed an eight-storey residential building and badly damaged several others around it in the Basta neighbourhood at 4am (2am UK time) on Saturday.
The central Basta neighbourhood in Beirut
The Israeli military did not warn residents to evacuate before the attack and has not commented on the casualties.
At least four bombs were dropped in the attack – the fourth targeting the city centre this week.
A separate drone strike in the southern port city of Tyre this morning killed two people and injured three, according to the state-run National News Agency.
The victims were Palestinian refugees from the nearby al Rashidieh camp who were out fishing, according to Mohammed Bikai, spokesperson for the Fatah Palestinian faction in the Tyre area.
Israel’s military warned residents today in parts of Beirut’s southern suburbs that they were near Hezbollah facilities, which the army would target in the near future. The warning, posted on X, told people to evacuate at least 500 metres away.
The army said that over the past day it had conducted intelligence-based strikes on Hezbollah targets in Dahiyeh, in Beirut’s southern suburbs, where Hezbollah has a strong presence. It said it hit several command centres and weapons storage facilities.
Pic: AP
Israel has killed several Hezbollah leaders in air strikes on the capital’s southern suburbs.
Heavy fighting between Israel and Hezbollah is ongoing in southern Lebanon, as Israeli forces push deeper into the country since launching a major offensive in September.
According to the Lebanese health ministry, at least 3,670 people have been killed in Israeli attacks there, with more than 15,400 wounded.
It has displaced about 1.2 million people – a quarter of Lebanon’s population – while Israel says about 90 soldiers and nearly 50 civilians have been killed in northern Israel.
Read more:
No 10 indicates Netanyahu would be arrested
‘Dozens’ of Palestinians killed in Israeli airstrike
Meanwhile, six people, including three children and two women, were killed in the southern Gazan city of Khan Younis.
Some 44,176 Palestinians have been killed since the start of Israel’s military campaign in Gaza, according to the Gaza health ministry.
The ministry does not distinguish between civilians and combatants in its count, but it has said that more than half of the fatalities are women and children.
The war began when Hamas-led militants stormed into southern Israel on 7 October 2023, killing some 1,200 people and taking another 250 hostage.
US envoy Amos Hochstein was in the region this week to try to end more than 13 months of fighting between Israel and Hezbollah, ignited last October by the war in Gaza.
Mr Hochstein indicated progress had been made after meetings in Beirut on Tuesday and Wednesday, before going to meet Israeli Prime Minister Benjamin Netanyahu and defence minister Israel Katz.
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