Zahawi

Rishi Sunak fires Zahawi after he was found to have committed 'serious breach' of ministerial code.

By that stage the investigation had been ongoing for more than a year; however, Zahawi only updated his declaration on 15 July 2022. “As a general rule I think it is important when allegations are raised that they are investigated promptly, but also we shouldn’t rush to judgment before there’s been that investigation,” he told the BBC’s Sunday with Laura Kuenssberg programme. The former Tory cabinet minister Michael Portillo said it was “commendable” that Sunak had wanted to go through the proper processes. “As a result, I have informed you of my decision to remove you from your position in His Majesty’s Government,” he said. He singled out a piece in the Independent, headlined “The noose tightens”, which was about calls from fellow Conservative MPs for him to resign. The Guardian then reported that the minister had paid a penalty as part of the settlement.

Nadhim Zahawi has been sacked as Conservative Party chairman by Rishi Sunak, after an ethics inquiry into the handling of his tax affairs.

“It’s vital that we now get answers to what Rishi Sunak knew and when did he know it. “The reason this keeps happening is we have a Government whose only principle is party first, country second. “As a result, I have informed you of my decision to remove you from your position in His Majesty’s Government.”

The Scottish Greens and SNP said the dismissal of the former chancellor raises questions over Rishi Sunak's judgment.

“Sunak still has questions to answer over this whole affair, about what he knew about the settlement and what advice he received about Zahawi’s tax on his appointment.” He also said the Prime Minister had insisted he was not aware of “those tax issues and his tax affairs” when he appointed Mr Zahawi to Government. Pressed on why it took so long to dismiss Mr Zahawi, Mr Hoy defended the Prime Minister, saying the sacking “hasn’t been hanging around for months” and that Mr Sunak acted “decisively”.

Letters from Rishi Sunak, Nadhim Zahawi and Sir Laurie Magnus after Mr Zahawi's sacking as party chairman.

Under section 1.3(d) of the Ministerial Code, ministers have a duty to "be as open as possible with Parliament and the public". I consider that an HMRC investigation of the nature faced by Mr Zahawi would be a relevant matter for a minister to discuss and declare as part of their declaration of interests. At the time of my investigation this declaration was under consideration by the permanent secretary and had yet to be submitted onward to me for consideration. As a result of my inquiries, I conclude that Mr Zahawi failed to update his declaration of interest form appropriately after this settlement was agreed in principle in August 2022. Taken together, I consider that these omissions constitute a serious failure to meet the standards set out in the Ministerial Code. As set out at paragraph 11, I consider that Mr Zahawi should previously have declared the fact of the investigation. After his appointment as chancellor on 5 July 2022, Mr Zahawi completed a declaration of interests form which contained no reference to the HMRC investigation. to comply with the law and to protect the integrity of public life". With Mr Zahawi's agreement, I have met with HMRC and received some details, including the timing, of his interaction with them. I should acknowledge that the minister without portfolio has provided his full and open co-operation in assisting with my inquiries. Here, I built a successful business and served in some of the highest offices in government. As a result, I have informed you of my decision to remove you from your position in His Majesty's Government.