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Nadhim Zahawi – live: Jeremy Hunt U-turns on whether he’s ever paid tax penalty

Jeremy Hunt has confirmed that he has never paid an HMRC tax penalty.

The chancellor’s answer came upon the third time of asking, having declined to answer twice when the question was put to him after his London Bloomberg speech.

Asked by BBC News to clarify whether he had ever paid a HMRC penalty, Mr Hunt said: “I don’t normally comment about my own tax records. But, I am chancellor, so, for the record: I haven’t paid a HMRC fine.”

Amidst the investigation into Nadhim Zahawi’s tax debacle, Mr Hunt also claimed taxation must be lowered to attract investment and pledged to put “restraint on spending”.

He argued that high taxes “directly affect” the incentives which determine decisions by entrepreneurs, investors or larger companies about whether to pursue business in Britain.

Elsewhere, he said that reducing inflation was the only sustainable way to “restore industrial harmony” in Britain, remarking that “the best tax cut right now is a cut in inflation.”

Though the prime minister’s press secretary initially insisted Rishi Sunak’s tax affairs were “confidential”, No 10 confirmed that he too has never paid a tax penalty to HMRC.

Key points

  • ‘Best tax cut right now is a cut in inflation’, says Hunt

  • Jeremy Hunt finally reveals whether he’s paid a tax penalty

  • Former Tory chair calls for Nadhim Zahawi to ‘step aside’

  • Zahawi allows HMRC to pass his tax details to PM’s ethics adviser

Jeremy Hunt finally reveals whether he’s paid a tax penalty – after being asked three times

Friday 27 January 2023 11:52 , Eleanor Noyce

Jeremy Hunt has finally revealed he has not paid a tax fine to HMRC after refusing three times.

The chancellor declined to say whether he has ever paid a penalty to the taxman at a speech in London this morning.

However Mr Hunt later said he was willing to disclose that he has never paid a HMRC fine in a BBC interview.

His answer came upon the third time of asking, having declined to answer twice when the question was put to him during a question-and-answer session in the aftermath of his London Bloomberg speech.

Asked by BBC News to clarify whether he had ever paid a HMRC penalty, Mr Hunt said: “I don’t normally comment about my own tax records.

“But, I am chancellor, so, for the record: I haven’t paid a HMRC fine.”

Thomas Kingsley reports:

Jeremy Hunt finally reveals whether he’s paid a tax penalty

Friday 27 January 2023 04:05 , Shweta Sharma

Good morning and welcome to The Independent’s live politics coverage.

We’ll be bringing you updates throughout the day as Nadhim Zahawi faces pressure to resign over a row about his tax arrangement.

Rishi Sunak defends Nadhim Zahawi’s cabinet appointment

Friday 27 January 2023 04:19 , Shweta Sharma

Rishi Sunak insisted he knew of “no issues” regarding Nadhim Zahawi’s tax affairs when he appointed him to his role as the Conservative Party chair.

Speaking at Chequers where he has been holding a Cabinet away day, the prime minister said: “Because new information came to light over the past week, that’s why I decided to ask the independent adviser to fully investigate this matter.

“When I appointed Nadhim Zahawi to his current job, no issues were raised with me about that appointment.”

Mr Sunak is said to be “livid” with his Cabinet minister over the saga, according to The Times.

The prime minister has not spoken to his party chairman since he revealed details of his settlement with HM Revenue and Customs at the weekend.

Nadhim Zahawi dealt massive blow in tax row after extraordinary intervention by HMRC

Friday 27 January 2023 04:30 , Shweta Sharma

Nadhim Zahawi has not made an “innocent error” in his tax affairs, the head of HM Revenue and Customs suggested, raising fresh questions about the cabinet minister’s £1m fine.

The Tory chair claimed he had “acted properly” with his tax affairs and that officials had judged his error to have been “careless and not deliberate”.

But James Harra, HMRC’s chief executive, told a cross-party group of MPs on Thursday that “there are no penalties for innocent errors in your tax affairs” – making clear that his organisation did not fine those deemed to have taken “reasonable care”.

Sunak says ‘no issues’ raised about Zahawi tax before cabinet appointment

Nadhim Zahawi approves HMRC to pass details to PM’s ethics adviser

Friday 27 January 2023 04:45 , Shweta Sharma

Nadhim Zahawi has reportedly given approval to HM Revenue and Customs to pass details of his tax affairs to the Prime Minister’s ethics adviser - who is investigating if he broke the rules for ministers.

Pressure on the Tory Party chair, who has admitted paying a penalty as part of an estimated £4.8 million settlement with HMRC, intensified after the head of the organisation said such penalties were not issued for “innocent errors”.

A source close to Mr Zahawi said that he has now given HMRC permission to speak to Sir Laurie Magnus who is investigating whether his actions represented a breach of the Ministerial Code of Conduct.

Earlier, giving evidence to MPs, the head of HMRC Jim Harra said that while he could not comment on individual cases there were “no penalties for innocent errors in your tax affairs”.

Keir Starmer failed to make the case for Nadhim Zahawi’s resignation

Friday 27 January 2023 04:54 , Shweta Sharma

Not for the first time, Westminster was agog. Speculation about when a minister would resign dominated journalists’ conversations before Prime Minister’s Questions. Would Nadhim Zahawi, the Conservative Party chair, be sacked after the Today programme? Mid-morning? Five minutes before PMQs? Or by Rishi Sunak in his first answer?

Not for the first time, the clash between prime minister and leader of the opposition was an anti-climax.

Keir Starmer realised that people outside the Commons were less interested in the processology of a minister whose career is hanging by a thread, and so he devoted his first three questions to the failure of the probation service in releasing the violent criminal who murdered Zara Aleena.

Keir Starmer failed to make the case for Nadhim Zahawi’s resignation | John Rentoul

Jeremy Hunt warns economic ‘discipline’ needed to get inflation under control

Friday 27 January 2023 05:15 , Shweta Sharma

Chancellor Jeremy Hunt has warned the government must maintain its “disciplined approach” to the public finances if it is to get inflation under control as the meeting remained overshadowed by Nadhim Zahawi’s tax affairs row.

Mr Hunt is facing calls from some Tory MPs to cut taxes in his budget in March in a bid to kick-start growth in the flagging UK economy.

At a cabinet away day at Chequers, Rishi Sunak and the Chancellor both emphasised inflation was only predicted to fall because of the “tough decisions” taken in the autumn statement to stabilise the economy.

“The Chancellor said it would be necessary to retain this disciplined approach in order to reduce inflation, because it is the greatest driver of the cost of living,” according to a No 10 readout of the meeting.

Who is Nadhim Zahawi? All you need to know about the under-fire Tory Party chairman

Friday 27 January 2023 05:30 , Shweta Sharma

After a dramatic 48-hours in Westminster last July triggered by the shock resignations of then-chancellor Rishi Sunak and health secretary Sajid Javid, Boris Johnson was finally forced to step down as Britain’s prime minister.

After Owen Paterson, the Partygate saga, the Jimmy Savile slur, those stalled Rwanda deportation flights, boos at the Queen’s Jubilee, the vote of confidence, Lord Geidt’s exit, two by-election thrashings, party chair Oliver Dowden’s departure and the particularly rotten Chris Pincher scandal, the “greased piglet” finally slipped off the podium.

The fact that Mr Johnson was able to weather that final controversy as long as he did was almost entirely down to one man: Nadhim Zahawi.

All you need to know about the under-fire Tory Party chairman Nadhim Zahawi

No penalties for ‘innocent tax errors', says HMRC boss

Friday 27 January 2023 06:00 , Shweta Sharma

The boss of HM Revenue & Customs (HMRC) has said there are “no penalties for innocent errors”, as he was questioned on the ongoing tax row surrounding Nadhim Zahawi.

HMRC chief executive Jim Harra, appearing before the Public Accounts Committee where he was due to discuss tax compliance and the pandemic, was pressed on some of the questions surrounding the tax arrangements for the embattled Tory party chairman.

“Carelessness is a concept in tax law,” he said.

“It can be relevant to how many back years that we can assess, can be relevant to whether someone is liable to a penalty and if so, what penalty they will be liable to for an error in their tax affairs.

“There are no penalties for innocent errors in your tax affairs.

“So if you take reasonable care, but nevertheless make a mistake, whilst you will be liable for the tax and for interest if it’s paid late, you would not be liable for a penalty.

“But if your error was as a result of carelessness, then legislation says that a penalty could apply in those circumstances.”

Nadhim Zahawi’s tax affairs: A timeline of how the controversy played out

Friday 27 January 2023 06:30 , Shweta Sharma

Questions have swirled around Nadhim Zahawi and his tax affairs in recent weeks but the row came to a head in the last few days – piling pressure on the Tory chairman and forcing Rishi Sunak to address what he knew and when about the allegations.

The ongoing row centres on a tax bill over the sale of shares in YouGov, the polling firm Mr Zahawi founded. The shares, worth an estimated £27m, were held by Balshore Investments, a company registered offshore in Gibraltar and linked to Mr Zahawi’s family.

Here is how the controversy has played out:

Nadhim Zahawi’s tax affairs: A timeline of how the controversy played out

‘Livid’ Sunak refuses to speak to Zahawi after tax row

Friday 27 January 2023 07:00 , Shweta Sharma

Rishi Sunak is said to be “livid” with Nadhim Zahawi as the fallout of the party chairman’s tax affairs continues.

The prime minister has not spoken to his party chairman since he revealed details of his settlement with HM Revenue and Customs at the weekend, it has been reported.

He is said to be frustrated that his colleague initially failed to disclose that he had paid a penalty for tax avoidance as part of an estimated £4.7 million settlement.

‘Livid’ Sunak refuses to speak to Zahawi after tax row

Former Conservative party chairman calls on Zahawi to ‘step aside’

Friday 27 January 2023 07:28 , Eleanor Noyce

A former Conservative Party chairman has called on Nadhim Zahawi to “step aside” whilst he is investigated over his tax debacle.

Sir Jake Berry remarked on BBC Question Time that stepping aside would be the “right thing to do now.”

“The government needs to find a mechanism for ministers and MPs who under investigation in this way to step aside, to clear their name and then to come back into government if that is appropriate”, Sir Berry added.

The pitfalls of Rishi Sunak’s premiership

Friday 27 January 2023 07:30 , Shweta Sharma

A refrain often heard in Westminster, when decisions need to be made, is, “you have to think about the politics”.

In a democratic system, people have to be persuaded – whether at the ballot box or the voting lobbies – and the role of the marketing team ultimately belongs to senior politicians. You can, of course, present facts and push the evidence, but people make political choices with more than a hint of emotion. Being too “clever” quite often goes against you.

Read Furvah Shah’s report.

The pitfalls of Rishi Sunak’s premiership | Salma Shah

Nadhim Zahawi allows HMRC to pass his tax details to PM’s ethics adviser

Friday 27 January 2023 07:56 , Eleanor Noyce

Nadhim Zahawi has authorised HM Revenue & Customs to pass details of his tax affairs to the Prime Minister’s ethics adviser – who is investigating if he broke the rules for ministers – as Rishi Sunak continued to resist calls to sack him.

Pressure on the Tory Party chairman, who has admitted paying a penalty as part of an estimated £4.8m settlement with HMRC, intensified after the head of the organisation said such penalties were not issued for “innocent errors”.

A source close to Mr Zahawi said that he has now given HMRC permission to speak to Sir Laurie Magnus who is investigating whether his actions represented a breach of the Ministerial Code of Conduct.

Earlier, giving evidence to MPs, the head of HMRC Jim Harra said that while he could not comment on individual cases there were “no penalties for innocent errors in your tax affairs”.

Speaking during a Cabinet away day at Chequers – his grace-and-favour country residence – Mr Sunak said he would wait for Sir Laurie’s report before making any decisions while refusing to be drawn on when he had learned his minister had paid the reportedly 30 per cent penalty.

More here:

Nadhim Zahawi allows HMRC to pass his tax details to PM’s ethics adviser

Jeremy Hunt says ‘forget the gloom, the future’s bright’ with the Tories

Friday 27 January 2023 08:00 , Eleanor Noyce

Chancellor Jeremy Hunt will dismiss misplaced “gloom” about the prospects for the UK economy, saying Britain stands ready to take advantage of its Brexit “freedoms” to become a new world leader.

In a keynote speech on Friday, Mr Hunt will deliver an upbeat message, saying: “Declinism about Britain was wrong in the past and it is wrong today”.

But despite the optimistic tone, the Chancellor is expected to continue to resist calls from some Tory MPs for tax cuts to kick-start flagging economic growth.

Instead he will say the UK should exploit the opportunities provided by the UK’s withdrawal from the EU to raise productivity while using the proceeds of growth to support public services.

Gavin Cordon has more:

Jeremy Hunt says ‘forget the gloom, the future’s bright’ with the Tories

Nadhim Zahawi dealt massive blow in tax row after extraordinary intervention by HMRC

Friday 27 January 2023 08:14 , Eleanor Noyce

Nadhim Zahawi has not made an “innocent error” in his tax affairs, the head of HM Revenue and Customs suggested, raising fresh questions about the cabinet minister’s £1m fine.

The Tory chair claimed he had “acted properly” with his tax affairs and that officials had judged his error to have been “careless and not deliberate”.

But James Harra, HMRC’s chief executive, told a cross-party group of MPs on Thursday that “there are no penalties for innocent errors in your tax affairs” – making clear that his organisation did not fine those deemed to have taken “reasonable care”.

“If you take reasonable care but nevertheless make a mistake, whilst you will be liable for the tax and for interest … you would not be liable for a penalty,” Mr Harra told the public accounts select committee on Thursday.

Read more:

Nadhim Zahawi dealt massive blow in tax row after extraordinary intervention by HMRC

Sunak maintains he will ‘not pre-judge’ outcome of Zahawi investigation

Friday 27 January 2023 08:15 , Eleanor Noyce

Rishi Sunak has maintained he will wait for the results of the investigation into Nadhim Zahawi despite HMRC boss Jim Harra saying there are “no penalties for innocent errors”.

Speaking to broadcasters at Chequers, the Prime Minister’s grace-and-favour country retreat, he said: “I’m not going to pre-judge the outcome of the investigation, it’s important that the independent adviser is able to do his work.

“That’s what he’s currently doing, that’s what I’ve asked him to do and I’ll await the findings of that investigation.”

Forget ‘awaydays’ – what Rishi Sunak must do now is reshuffle

Friday 27 January 2023 08:30 , Eleanor Noyce

Editorial: If he is to make any progress in the 18 months or so left until the next general election, he needs a team he can trust to stay out of trouble, carry out policies and ‘deliver’.

Read more:

Editorial: Forget ‘awaydays’ – what Rishi Sunak must do now is reshuffle

Top 20 taxpayers in UK revealed as Russian-born mathematician tops list

Friday 27 January 2023 09:00 , Eleanor Noyce

A mathematician who was born in Russia and has spoken out against Vladimir Putin’s war in Ukraine was the UK’s biggest taxpayer last year.

The Sunday Times tax list revealed on Friday that 100 wealthy people or families contributed nearly £5.2 billion in tax in the UK last year.

Nearly £1 in every £10 of this came from just one man – Moscow-born Alex Gerko, who set up XTX Markets in 2015 and is co-chief executive of the trading business.

Last year he paid £487.4 million in tax, making him the biggest single taxpayer in the country.

It comes as Tory party chairman Nadhim Zahawi is engulfed in a tax row, after he admitted paying a penalty as part of an estimated £4.8m settlement with HMRC over an error he said was “careless and not deliberate”.

August Graham has more:

Top 20 taxpayers in UK revealed

Ex-chancellor Philip Hammond says he would not have accepted role if taxes were under investigation

Friday 27 January 2023 09:30 , Eleanor Noyce

The former chancellor Philip Hammond has stated that he would not have accepted the role if he was being investigated by HMRC, Sky News reports.

Asked if it was ”acceptable” that Nadhim Zahawi paid a penalty to settle a tax dispute whilst occupying the role of chancellor, Mr Hammond said: “My own personal view is that I would not want to accept the office of chancellor if I was at that time involved in a live negotiation of an outstanding tax case with HMRC.”

Mr Hammond remarked that as the incumbent prime minister at the time of Mr Zahawi’s appointment, Boris Johnson should be held accountable.

“If he was aware of these issues, then I think the question falls at his door,” he added.

“Why did he appoint somebody to this role who clearly was not in a position to carry out that function?”

Jeremy Hunt claims taxes must be lowered to put ‘restraint on spending'

Friday 27 January 2023 09:57 , Eleanor Noyce

Chancellor Jeremy Hunt has claimed taxes must be lowered to attract investment and pledged to put “restraint on spending”.

“High taxes directly affect the incentives which determine decisions by entrepreneurs, investors or larger companies, about whether to pursue their ambitions in Britain.”

He added: “Our ambition should be to have nothing less than the most competitive tax regime of any major country. That means restraint on spending”

“In case anyone is in any doubt about who will actually deliver that restraint to make a low tax economy possible, I gently point out that in the three weeks since Labour promised no big Government chequebook they’ve made £45 billion of unfunded spending commitments.”

Former Tory chair calls for Nadhim Zahawi to ‘step aside’

Friday 27 January 2023 10:00 , Eleanor Noyce

Former Conservative Party chairman Jake Berry has called for Nadhim Zahawi to resign amid the furore around his tax affairs.

Speaking on BBC’s Question Time on Thursday, Mr Zahawi’s predecessor said the current chairman should “step aside.”

Mr Berry said it was “unsustainable” for any minister to stay in post while being investigated.

Rishi Sunak has called in his independent ethics adviser to carry out an inquiry into a multi-million-pound settlement he reached with HMRC while he was chancellor last year.

The prime minister has so far resisted calls for Mr Zahawi - who is also a Cabinet Office minister - to be sacked.

Thomas Kingsley reports:

Former Tory chair calls for Nadhim Zahawi to ‘step aside’

Hunt hits out at post-pandemic ‘declinism’ in Bloomberg speech

Friday 27 January 2023 10:04 , Eleanor Noyce

Chancellor Jeremy Hunt has said that the public sector has rebounded more slowly from the pandemic than he wanted, but hit out at “declinism”.

Speaking at an event hosted by Bloomberg, he said: “Declinism about Britain is just wrong. It’s always been wrong in the past, and it’s wrong today.

“Some of the gloom is based on statistics that don’t reflect the whole picture. Like every G7 country, our growth was slower in the years after the financial crisis than before it.

“But since 2010, the UK has grown faster than France, Japan and Italy. Not at the bottom, but right in the middle of the pack.

“Since the Brexit referendum, we’ve grown at about the same rate as Germany. Yes, we’ve not returned to pre-pandemic employment or output levels, but an economy that contracted 20% in a pandemic, still has nearly the lowest unemployment for half a century.

“Whilst our public sector continues to recover more slowly than we would like from the pandemic strengthening the case for reform, our private sector has grown seven and a half percent in the last year.

‘Best tax cut right now is a cut in inflation’, says Hunt

Friday 27 January 2023 10:05 , Eleanor Noyce

Chancellor Jeremy Hunt said the “best tax cut right now is a cut in inflation”, arguing that reducing inflation was the “only sustainable way to restore industrial harmony” in Britain.

In a speech at Bloomberg’s London HQ, Mr Hunt said: “My party understands better than others the importance of low taxes in creating incentives and fostering the animal spirits that spur economic growth.

“Another Conservative insight is that risk-taking by individuals and businesses can only happen when governments provide economic and financial stability.

“So the best tax cut right now is a cut in inflation.

“And the plan I set out in the autumn statement tackles that root cause of instability in the British economy.

“The Prime Minister talked about halving inflation as one of his five key priorities and doing so is the only sustainable way to restore industrial harmony.”

Britain needs a ‘more positive attitude to risk-taking’, Chancellor claims

Friday 27 January 2023 10:07 , Eleanor Noyce

The Chancellor said that “Britain needs a more positive attitude to risk-taking”, as it is “too cautious compared to our US friends.”

“Brexit is an opportunity not just to change regulations, but also to work with our experienced, effective, and independent regulators”, he said.

“To create an economic environment which is more innovation friendly, and more growth focused.”

He added that scale-up companies have a “critical” need to more easily access capital, and referred to the Government’s Edinburgh Reforms package which are set to make the UK a more competitive place for businesses.

The reforms “could unlock more than £100 billion of additional investment into the UK’s most productive growth industries”, Mr Hunt reiterated.

Jeremy Hunt has claimed that Brexit has provided an opportunity for the UK to change its regulations so that innovative companies can more easily access cash.

Jeremy Hunt declines to confirm whether he has ever paid tax penalty

Friday 27 January 2023 10:09 , Eleanor Noyce

Chancellor Jeremy Hunt has declined to say whether he has ever paid a penalty to the taxman.

Asked whether he had every paid a penalty to HM Revenue and Customs, he said: “I’m not going to talk about my personal tax affairs, but I don’t think there’s anything you’d find interesting to write about if I can put it that way.”

The Chancellor was speaking at an event hosted by Bloomberg.

Chancellor wants the UK to become ‘one of the most prosperous’ countries in Europe post-Brexit

Friday 27 January 2023 10:10 , Eleanor Noyce

Jeremy Hunt said he wanted Brexit to become a “catalyst” for economic growth in order to reduce the “weaknesses” in the UK economy.

He said there had been “uneven, lower growth” in Britain, listing issues such as structural productivity, skills gaps and low business investment and the “overconcentration of wealth in the South East”.

The Chancellor, in a speech in central London, said: “We want to be one of the most prosperous countries in Europe. Today I want to set out our plan to address those issues.

“That plan, our plan for growth is necessitated, energised and made possible by Brexit.

“The desire to move to a high-wage, high-skill economy is one shared on all sides of that debate.

“We need to make Brexit a catalyst for the bold choices that will take advantage of the nimbleness and flexibilities that it makes possible.”

Four pillars ‘essential for any modern economy’, Hunt says

Friday 27 January 2023 10:15 , Eleanor Noyce

Outlining his plan for growth, Jeremy Hunt said it would be based on what he called his “four pillars”.

The Chancellor, in a speech at Bloomberg in London, said he would use the pillars as a “framework” against to assess individual policies.

He said they were “essential for any modern, innovation-led economy”.

The four pillars, all beginning with the letter “E” are: enterprise, education, employment and everywhere.

‘Britain needs you’, Hunt urges people who left work during the pandemic

Friday 27 January 2023 10:20 , Eleanor Noyce

Chancellor Jeremy Hunt has told people who left work during the pandemic and have not returned that “Britain needs you”.

“If companies can’t employ the staff they need, they can’t grow,” he said at an event hosted by Bloomberg.

He said that one fifth of working age adults are economically inactive. Around five million people do not want to work, he added.

“It’s time for a fundamental programme of reforms to support people with long-term conditions or mental illness to overcome the barriers and prejudices that prevent them from working.

“We will never harness the full potential of our country unless we unlock it for each and every one of our citizens.”

He added: “So to those who retired early after the pandemic, or haven’t found the right role after furlough, I say Britain needs you. And we will look at the conditions necessary to make work worth your while.”

The news comes as the Government is embroiled in a furore over Nadhim Zahawi’s tax scandal.

Government to invest in ‘mini-Canary Wharfs’ across the country, Hunt confirms

Friday 27 January 2023 10:23 , Eleanor Noyce

The UK Government will invest in “mini-Canary Wharfs” across the country to help reverse the economic migration from other parts of the country to the South East of England, the Chancellor said.

Jeremy Hunt, during a speech at Bloomberg’s London office, said it was “economically damaging” that the country’s second cities were not the “economic powerhouses” that they are in other countries, arguing UK GDP could be 5% higher if they were producing more growth.

Announcing measures designed to level-up, the Chancellor added: “This year we will announce investment zones, mini-Canary Wharfs, supporting each one of our growth industries, each one focused in high-potential but underperforming areas in line with our mission to level-up.

“They will be focused on our research strengths, executed in partnership with local government, with advantageous fiscal treatment to attract new investment.

“And we’ll shortly start a process to identify exactly where they will go.”

Jeremy Hunt refuses to say if he’s ever paid tax fine to HMRC

Friday 27 January 2023 10:23 , Eleanor Noyce

Jeremy Hunt has declined to say whether he has ever paid a penalty to the taxman.

Asked whether he had ever paid a fine to HM Revenue and Customs, he said: “I’m not going to talk about my personal tax affairs, but I don’t think there’s anything you’d find interesting to write about if I can put it that way.”

The Chancellor was speaking at an event hosted by Bloomberg.

His refusal comes as former chancellor Nadhim Zahawai is under scrutiny for paying a million pound fine to settle a tax dispute with HMRC.

He is being investigated by the prime minister’s ethics adviser over whether he broke the ministerial code over the dispute.

Jeremy Hunt refuses to say if he’s ever paid tax fine to HMRC

Nadhim Zahawi’s tax affairs: A timeline of how the controversy played out

Friday 27 January 2023 10:45 , Eleanor Noyce

Questions have swirled around Nadhim Zahawi and his tax affairs in recent weeks but the row came to a head in the last few days – piling pressure on the Tory chairman and forcing Rishi Sunak to address what he knew and when about the allegations.

The ongoing row centres on a tax bill over the sale of shares in YouGov, the polling firm Mr Zahawi founded. The shares, worth an estimated £27m, were held by Balshore Investments, a company registered offshore in Gibraltar and linked to Mr Zahawi’s family.

Here is how the controversy has played out:

Nadhim Zahawi’s tax affairs: A timeline of how the controversy played out

Hunt’s speech underlines ‘failure’ of Tory economic policy, Labour says

Friday 27 January 2023 10:46 , Eleanor Noyce

Shadow chancellor Rachel Reeves has said Jeremy Hunt‘s speech underlined the failures of Conservative economic policy.

“Thirteen years of Tory economic failure have left living standards and growth on the floor, crashed our economy, and driven up mortgages and bills,” she said.

“The Tories have no plan for now, and no plan for the future. It’s time for a Labour government that will build a better Britain.”

Liberal Democrat treasury spokeswoman Sarah Olney said Mr Hunt‘s speech offered “cold comfort” for families and pensioners struggling with the cost of living.

“This Conservative party sounds like an unfaithful partner asking for yet another chance - but after crashing the economy and sending mortgages sky-high why should we trust them again?” she said.

‘Do the right thing’: Zahawi letter urging Johnson to resign resurfaces as Tory chair clings on

Friday 27 January 2023 11:15 , Eleanor Noyce

Nadhim Zahawi’s letter to Boris Johnson calling on him to “do the right thing” and resign has resurfaced as he fights for his political life following a damaging set of revelations about his tax arrangements.

Mr Zahawi, Stratford-on-Avon MP and Tory chairman, called on the former prime minister to quit over his handling of the Chris Pincher affair and a number of other scandals.

“Prime minister: this is not sustainable and it will only get worse: for you, for the Conservative Party and most importantly of all the country. You must do the right thing and go now,” Mr Zahawi told the former PM - just two days after agreeing to become his chancellor.

The letter resurfaced on Twitter as Mr Zahawi faced calls to resign over a multimillion pound settlement with HMRC in unpaid tax, relating to shares in YouGov, the polling company he co-founded and Balshore Investments, an offshore trust registered in Gibraltar and linked to his family.

Matt Mathers reports:

‘Do the right thing’: Zahawi’s letter urging Johnson to quit resurfaces

Hunt U-turns on not revealing tax, now saying he hasn’t paid a fine

Friday 27 January 2023 11:37 , Eleanor Noyce

Jeremy Hunt said he was willing to disclose that he has never paid a HMRC fine.

The Chancellor’s answer came upon the third time of asking, having declined to answer twice when the question was put to him during a question-and-answer session in the aftermath of his London Bloomberg speech.

Asked by BBC News to clarify whether he had ever paid a HMRC penalty, Mr Hunt said: “I don’t normally comment about my own tax records.

“But, I am Chancellor, so, for the record: I haven’t paid a HMRC fine.”

It comes as Conservative Party chairman Nadhim Zahawi faces an ethics probe after it emerged he finalised a tax settlement with HMRC, which included a penalty, while serving as chancellor.

Scandals pile up for top civil servant Simon Case

Friday 27 January 2023 11:45 , Eleanor Noyce

Simon Case, cabinet secretary and head of the civil service since 2020, is a man in the news. Unusually for a top civil servant, he is at the centre of two scandals simultaneously: Nadhim Zahawi’s tax affairs, and the story of Boris Johnson’s £800,000 private and undeclared “credit facility”.

The spotlight is on Britain’s youngest-ever Whitehall chief, says Sean O’Grady.

Read more:

Scandals pile up for top civil servant Simon Case

Jeremy Hunt’s big speech on the economy: what he said – and what he really meant

Friday 27 January 2023 12:20 , Eleanor Noyce

What Jeremy Hunt said: Digital technology has transformed nearly every aspect of our economic lives. How do I know that? Because I asked ChatGPT to craft the opening lines of this speech.

What he really meant: I am a robot hologram, a Max Headroom powered by algorithms scraping any old rubbish off the internet.

What he said: Who needs politicians when you’ve got AI?

What he meant: No, it is a serious question.

Our chief political commentator imagines the private thoughts of the chancellor as he spoke to a business audience at Bloomberg HQ in London.

John Rentoul reports:

Jeremy Hunt’s big speech: what he said – and what he really meant | John Rentoul

West Yorkshire mayor hits out at ‘corrupt’ Tories over Zahawi tax scandal

Friday 27 January 2023 12:50 , Eleanor Noyce

The Mayor of West Yorkshire has hit out at the “corrupt” Conservative party over the Nadhim Zahawi tax scandal.

Appearing on BBC Question Time, Tracy Brabin said that “the swamp” must be drained.

“He’s being investigated by the department that he was leading as chancellor, and what you’ve got is a party that is corrupt and we’ve just got to drain the swamp”, Tracy Brabin said on BBC Question Time.

“We have got to get back to some sort of level where the public are treated with respect because the people who represent them live like them, not disconnected in the way that we’re seeing”, she added.

Nadhim Zahawi: 5 questions that need answering on tax affairs

Friday 27 January 2023 13:20 , Eleanor Noyce

Rishi Sunak is under pressure after he resisted firing Nadhim Zahawi, despite the Conservative chairman’s admission he settled a tax dispute after an HMRC investigation.

The prime minister, who has ordered his ethics adviser to investigate whether Mr Zahawi broke ministerial rules, admitted there are “questions that need answering” as the saga rumbles on.

Some Tory MPs want Mr Zahawi to quit, though others have urged him to “get out” more tax details in an attempt to clear the matter up. The Independent takes a closer look at the big unanswered questions.

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Nadhim Zahawi: 5 questions that need answering on tax affairs

Rishi Sunak’s ‘narrow path’ to winning the next election

Friday 27 January 2023 13:50 , Eleanor Noyce

Amidst yet another scandal in the Nadhim Zahawi tax debacle, cabinet ministers must be tempted to contemplate the end of Conservative rule, writes John Rentoul.

Read more:

Rishi Sunak’s ‘narrow path’ to winning the next election | John Rentoul

Letters to the editor: “Sunak is either naive or just not telling the truth"

Friday 27 January 2023 14:20 , Eleanor Noyce

Despite being asked repeatedly if he knew about Nadhim Zahawi’s issues with HMRC before he appointed him, all Rishi Sunak could say was that Zahawi’s tax affairs were not raised when he appointed him chairman in October. Which is not a denial that he knew.

This week, “Sunak is either naive or just not telling the truth", writes one reader.

In letters to the editor, our readers share their views. Please send your letters to letters@independent.co.uk.

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Letters: Sunak is either naive or just not telling the truth

UK Treasury chief: Tax cuts must wait for inflation to fall

Friday 27 January 2023 14:50 , Eleanor Noyce

Britain’s Treasury chief said Friday that taming inflation is more important than cutting taxes, resisting calls from some in the governing Conservative Party for immediate tax breaks for businesses and voters.

At a speech in London, Chancellor of the Exchequer Jeremy Hunt said “the best tax cut right now is a cut in inflation.”

The U.K.’s annual inflation rate hit a four-decade high of 11.1% in October, fueling a cost-of-living crisis and a wave of strikes by workers seeking pay raises to keep pace with rising food and energy prices. It has since eased but still reached a painful 10.5% in December and is the highest since the 1980s.

Prime Minister Rishi Sunak has promised to halve the inflation rate from those levels by the end of the year.

Hunt said he wanted Britain to be a low-tax economy but “with volatile markets and high inflation, sound money must come first” — a sign he won’t cut taxes when he makes his annual budget statement in March.

Read more:

UK Treasury chief: Tax cuts must wait for inflation to fall

Footage resurfaces of Nadhim Zahawi complaining about a parking ticket

Friday 27 January 2023 15:20 , Eleanor Noyce

Footage has resurfaced of Nadhim Zahawi complaining about a parking ticket he received following a road traffic accident in 2004.

As he was lifted into an ambulance following a road traffic accident, a traffic warden stuck a penalty notice on the wreckage of his scooter.

“It was so blatantly obvious. There was no way the traffic warden could have missed an ambulance, a police van, a bike that’s smashed and eyewitnesses standing there. What was she thinking?”, Mr Zahawi recalls from his hospital bed in the footage.

Watch below:

Unison says Hunt’s ‘vision for the future’ ignores vital public services

Friday 27 January 2023 15:37 , Eleanor Noyce

Unison has condemned chancellor Jeremy Hunt’s economic plans outlined in his London Bloomberg speech, delivered on Friday morning.

Unison general secretary Christina McAnea said: “Jeremy Hunt‘s grand vision for the future completely ignores vital public services.

“The Chancellor holds the key to unlock the damaging health pay dispute and rebuild the NHS, but he’s not even trying.

“No plan for the economy can succeed unless the Government also focuses on essential services.

“Paying proper wages will halt the staff exodus and mean there’s more money to spend in the local high street.”

Following Nadhim Zahawi’s tax debacle and the accompanying investigation, Mr Hunt also confirmed that he has never paid an HMRC tax fine. 10 Downing Street has cleared Rishi Sunak of similar questions.

The chancellor added that he wants Britain to be a low-tax nation, remarking that “with volatile markets and high inflation, sound money must come first.”

“Political advisers are now too scared to tell ministers the truth”, writes Andrew Grice

Friday 27 January 2023 15:50 , Eleanor Noyce

Are political advisers now too scared to tell ministers the truth?

Civil servants have a vital role to play if Sunak is to keep his promise of ‘integrity, professionalism and accountability at every level’, writes Andrew Grice.

Read more:

Political advisers are now ‘too scared’ to tell ministers the truth | Andrew Grice

How did Jeremy Hunt make his money?

Friday 27 January 2023 16:15 , Eleanor Noyce

Jeremy Hunt has finally given an answer after being repeatedly questioned about whether or not he has ever been fined by HM Revenue & Customs (HMRC).

“I don’t normally comment about my own tax records,” he told BBC News, having twice declined to address the matter during a question-and-answer session in the aftermath of a London Bloomberg speech.

“But, I am chancellor, so, for the record: I haven’t paid a HMRC fine.”

He had previously told his Bloomberg audience: “I’m not going to talk about my personal tax affairs, but I don’t think there’s anything you’d find interesting to write about if I can put it that way.”

The scrutiny comes in response to the scandal engulfing Conservative Party chairman Nadhim Zahawi, who faces an ethics probe after it emerged he finalised a tax settlement with HMRC, which included a penalty while serving as chancellor himself last summer.

Joe Sommerlad reports:

How did Jeremy Hunt make his money?

Nadhim Zahawi: Tory chairman’s controversies from tax dispute to heated stables

Friday 27 January 2023 16:45 , Eleanor Noyce

Nadhim Zahawi is in increasing political peril over his tax affairs after he admitted paying a settlement to the HMRC to end a dispute.

A row over the reported seven-figure sum he paid to settle the matter has heaped pressure on Rishi Sunak to sack the former businessman and MP for Stratford on Avon.

Labour leader Sir Keir Starmer said Mr Zahawi’s position as Tory Party chair is “untenable” and the prime minister should “show some leadership” by sacking him.

It is not the first time Mr Zahawi has been embroiled in controversy after he was caught up in the MPs expenses scandal in 2009 and has also reportedly been blocked from receiving a knighthood over his tax affairs.

Joe Middleton analyses all the Tory chairman’s controversies, from his tax dispute to a debacle over heated stables:

Zahawi’s controversies from claiming money for heating his stables to tax dispute

Senior Tory MP says “unsustainable” for Zahawi to remain in power

Friday 27 January 2023 18:07 , Sam Rkaina

Senior Tory MP Sir Jake Berry has said it is “unsustainable” for Mr Zahawi to remain in power, arguing it was necessary to step aside while under investigation so the public can have faith in the process.

The former minister, who was Mr Zahawi‘s direct predecessor as party chairman, told BBC Question Time: “Even though he is a friend of mine, I’m not going to allow that to distract from a view I’ve put forward consistently.

“The Government needs to find a mechanism for ministers and MPs who are under investigation in this way to step aside, to clear their name, and then to come back into government if that is appropriate.

“I think from Nadhim, great individual that he is, that would be the right thing to do now.

“I do think it’s unsustainable for a minister to stay in this post while this investigation goes on.”

Dorries ‘broke rules’ on post-ministerial jobs with TalkTV role

Friday 27 January 2023 19:10 , Sam Rkaina

Former culture secretary Nadine Dorries has been accused by Parliament’s anti-corruption watchdog of breaking Government rules by not consulting the body before taking a new job at TalkTV.

Ms Dorries will host a new Friday-night talk show on TalkTV but in a letter to the Conservative MP the Advisory Committee on Business Appointments (Acoba) chair Lord Pickles said “failing to seek and await advice before the role was announced or taken up in this case is a breach of the Government’s rules and the requirements set out in the ministerial code”.

The first instalment of her weekly hour-long programme, titled Friday Night With Nadine, will feature an exclusive interview with former prime minister Boris Johnson.

Lord Pickles said that Acoba was informed on Friday of her decision to take up the new role.

In a separate letter to Chancellor of the Duchy of Lancaster Oliver Dowden, Lord Pickles recommended that “given the transparent nature” of the role, it would be “disproportionate to take any further action in this case”.

However, he added that the case was a “further illustration of how out of date the Government’s rules are”.

Under the current rules, Ms Dorries should seek clearance from Acoba for any new employment or appointments she takes on within two years of leaving office.

Lord Pickles told the Mid Bedfordshire MP that “the risks under the rules in these types of appointments are usually limited”.

He said that “had you approached Acoba in good time before agreeing to the 26-week contract or publicising the role in the media it would have allowed us to advise you appropriately in advance”.

The Cabinet Office is expected to respond to the letter in due course.

 (Getty)
(Getty)

Friday 27 January 2023 19:54 , Sam Rkaina

We’re pausing our coverage of Nadhim Zahawi for the day but keep checking independent.co.uk for the latest updates.