Rishi Sunak has sacked Nadhim Zahawi following an investigation by No 10’s ethics adviser into the Conservative Party chairman’s tax arrangements.
The prime minister said the probe by Sir Laurie Magnus found that Mr Zahawi had committed a “serious breach of the ministerial code” after he came to a multimillion pound settlement with HMRC over unpaid tax when he was chancellor.
Mr Zahawi’s tax dispute was related to shares in YouGov, the polling company he co-founded and Balshore Investments, an offshore trust registered in Gibraltar and linked to his family.
The Stratford-on-Avon MP had refused to resign, saying that his payment to HMRC, which included a penalty, was the result of a “careless not deliberate” error – a claim refuted by the tax authority’s chief executive last week.
You can read Mr Sunak’s letter to Mr Zahawin full below:
“When I became Prime Minister last year, I pledged that the Government I lead would have integrity, professionalism and accountability at every level.
“That is why, following new information which came to light in recent days regarding your personal financial arrangements and declarations, I asked Sir Laurie Magnus, the independent adviser on ministers’ interests, to fully investigate this matter. You agreed and undertook to co-operate fully with the inquiry.
“Following the completion of the independent adviser’s investigation – the findings of which he has shared with us both – it is clear that there has been a serious breach of the ministerial code. As a result, I have informed you of my decision to remove you from your position in His Majesty’s Government.
“As you leave, you should be extremely proud of your wide-ranging achievements in Government over the last five years.
Zahawi outside HM Treasury last year after being appointed chancellor by Boris Johnson
“In particular, your successful oversight of the Covid-19 vaccine procurement and deployment programme which ensured the United Kingdom was at the forefront of the global response to the coronavirus pandemic.”
“Your role was critical to ensuring our country came through this crisis and saved many lives. And as the Conservative Party Chairman, you have undertaken significant restructuring to Conservative Campaign Headquarters and readied us for important work in the coming months.
“It is also with pride that I, and previous Prime Ministers, have been able to draw upon the services of a Kurdish-born Iraqi refugee at the highest levels of the U.K. Government. That is something which people up and down this country have rightly valued.
“I know I will be able to count on your support from the backbenches as you continue to passionately and determinedly serve your constituents of Stratford-on-Avon and represent the many issues and campaigns you are dedicated to. Thank you for your service to this and previous governments.”
