Nadhim Zahawi latest news: Rishi Sunak ‘didn’t know’ Tory chair paid tax penalty

Rishi Sunak didn’t know last week that former chancellor Nadhim Zahawi had paid a penalty to settle his tax dispute, Downing Street has said.

The prime minister’s official spokesman said that “additional facts” had been placed in the public domain over the weekend by Mr Zahawi.

“As you heard from the prime minister this morning, he thinks it’s right because of this to ask his independent adviser to establish the facts,” he added.

Labour’s deputy leader Angela Rayner has warned that Nadhim Zahawi’s case raises “serious concerns” about “standards in this entire government”.

“We may have a carousel of ministers but it’s the same old excuses every single time,” Ms Rayner told MPs.

“Reports that the then chancellor of the exchequer agreed a settlement with HMRC, including a penalty, raise serious concerns, not just about that case but standards in this entire government.”

Asking when Rishi Sunak knew about the case, Ms Rayner added: “Why was it kept secret? Is there no system in place to prevent a person being actively investigated for unpaid tax being appointed to run the UK’s tax system? Maybe it’s that absurd that no-one would ever think it would happen.

“While we understand confidentiality of the honours process, surely where a serving minister is blocked there is an overwhelming case for sounding the alarm. So did that happen and where is the report? If not, why is there a lower bar to get into this cabinet than there is to get a knighthood.”

Nicola Sturgeon has urged Nadhim Zahawi to step down after it was revealed he paid a penalty to resolve a multimillion-pound tax dispute.

The Scottish first minister said there must have been “something untoward” about the Tory chair’s taxes in order for him to be fined millions of pounds, as has been reported.

Former chancellor Mr Zahawi said he was “confident I acted properly throughout”, and welcomed the investigation.

Speaking to journalists on Monday, Ms Sturgeon said: “I think his position … is untenable. I think he should resign his current position as chair of the Conservative Party.

“It seems to be the case … that while he was Chancellor he settled a seven-figure tax bill with HMRC which included a very significant penalty.

“That means, as far as I can see, that there must have been something untoward about his tax affairs to a very large tune, in terms of the amount of money involved.”

Rishi Sunak followed the “usual process” in appointing Nadhim Zahawi as Tory chair while he faced an investigation over his tax affairs, a minister said.

Cabinet Office minister Jeremy Quin, responding to criticism in the Commons from Labour over Mr Zahawi, told MPs: “We follow a proper process under the Ministerial Code.

“Interests are required to be declared, they are required to be shared through the Ministerial Code process and discussed with permanent secretaries.

“I am absolutely confident that the usual process will have been followed in the appointment process by this prime minister for the right honourable gentleman.

Rishi Sunak was “duped” by a fake Falklands war hero at a Downing Street meeting for veterans attended by fellow ministers, according to a report (Adam Forrest writes).

The prime minister and veterans minister Johnny Mercer last month hosted Chris Webber – a man claiming he had fought in the Falklands conflict.

But a group investigating fake war heroes called the Walter Mitty Hunters Club claims to have exposed Mr Webber as a fantasist, according to The Mirror.

Nadhim Zahawi’s personal finances have caused a storm in Westminster over the weekend as he faces calls to resign after admitting to a settlement with HMRC over a “careless” error.

The Tory chair has an estimated net worht of £100m and is thought to be one of the richest MPs – along with Rishi Sunak, the prime minister who has ordered an investigation into Mr Zahawi’s tax affairs.

The Independent reported in July that Mr Zahawi’s finances had been secretly investigated by the National Crime Agency (NCA) in 2020.

Rishi Sunak has refused to say whether Nadhim Zahawi should resign after the prime minister opened an investigation into the Tory chair’s tax affairs.

Thousands of ambulance workers went on strike today as unions urged the chancellor to find the money to pay health workers “fairly” in order to end the walkouts.

Up to 15,000 Unison ambulance workers are striking on Monday for the third time in five weeks, and will be joined by 5,000 of their NHS colleagues at two hospital trusts in Liverpool.

Further strikes are planned in the coming weeks by nurses and other NHS staff – 6 February is likely to see the biggest strike action the NHS has ever experienced, with thousands of nurses and ambulance workers due to stage walkouts if no deal has been reached by then.

Nadhim Zahawi tried to stop The Independent exposing that he was being investigated over his tax affairs by threatening to sue if we published.

Mr Zahawi, who was chancellor at the time, repeatedly said he had paid “all due taxes” and would take legal action if we reported that he had been investigated.

The Independent ignored his threats and published two reports, detailing how Mr Zahawi had faced inquiries from the Serious Fraud Office, the National Crime Agency and HMRC.

Joe Sommerlad details the entire exchange:

Labour leader Sir Keir Starmer has said Nadhim Zahawi’s position is “untenable” and he should be sacked.

He told reporters: “I think it’s obvious that Zahawi can’t stay as Tory Party chair, the very idea that he can be discussing and negotiating his own tax affairs with the body that he’s supposed to be running, everybody knows it’s wrong.

“He clearly isn’t going to resign and so the Prime Minister needs to show some leadership.

“This is a test of the prime minister. He promised us – his first words – integrity and accountability.

“Well, if those words mean anything, the prime minister should sack him, and sack him today and show some leadership.

“Because if he doesn’t, it’s just going to be further evidence, I think, for the British public, as to just how weak this prime minister really is.”

Failing to sack Mr Zahawi would be a “strong failure of leadership” and “if this was somebody in my team, I would sack them”, Sir Keir added.