Rishi Sunak stands by Nadhim Zahawi amid tax row

Rishi Sunak has stood by Nadhim Zahawi amid a row over the Conservative Party chairman's tax affairs.

Jim Harra, HMRC's chief executive, suggested on Thursday morning that Mr Zahawi had not made an "innocent error", telling MPs: "There are no penalties for innocent errors".

Mr Sunak has launched an ethics probe into the matter after it emerged the Tory chairman had resolved a multimillion-pound tax dispute by paying a penalty.

Speaking after an away day at Chequers, his grace-and-favour residence, the Prime Minister told "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."

Mr Sunak gave a similar answer when asked about a separate investigation into Dominic Raab, the Deputy Prime Minister, over his alleged behaviour towards civil servants and officials across three departments.

06:13 PM

That's all for this evening...

Rishi Sunak stood by two beleaguered members of his top team on Thursday evening as he insisted he would wait for the results of two separate ethics inquiries.

Nadhim Zahawi, the Tory chairman, came under further fire earlier in the day as Jim Harra, HMRC's chief executive, suggested a penalty he paid to resolve a multimillion-pound tax dispute could not have been the result of an "innocent error".

And Dominic Raab, Mr Sunak's Deputy Prime Minister and the Justice Secretary, faced fresh revelations about his alleged conduct after reports, not denied by Downing Street, that the total number of complainants had risen to 24 in a bullying row.

"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," Mr Sunak said of the probe into Mr Zahawi.

My colleague Jack Maidment will be back early tomorrow to guide you through the day.

05:44 PM

Rishi Sunak: 'No issues' raised over Zahawi

Rishi Sunak insisted "no issues were raised" with him when he appointed Nadhim Zahawi as Tory chairman.

"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," he said.

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

05:32 PM

Sunak: I'll wait for Zahawi and Raab probes

Rishi Sunak has insisted he will wait for the results of the investigations into both Nadhim Zahawi and Dominic Raab, his under-fire party chairman and Deputy Prime Minister.

Speaking earlier today, HMRC boss Jim Harra told a select committee there were "no penalties for innocent errors".

After an away day at Chequers, Mr Sunak 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."

Asked about fresh claims regarding the number of complaints about Mr Raab, reportedly up to 24, the Prime Minister replied: "I appointed an independent investigator to have a look at that matter, I'll await for that independent investigator to complete that investigation and report back to me.

"In the meantime, what I'm doing is focusing on delivering on the five priorities that I set out for the country."

05:25 PM

Rishi Sunak: We helped Ukraine 'before others'

Britain should feel "very proud" of its support for Volodymyr Zelensky's country, Rishi Sunak has said as he noted the Government provided tanks to Ukraine "before others".

"I think when it comes to the question of tanks everyone should feel very proud of the leadership role that we have played, one of the early nations to provide tanks to Ukraine."

"As ever in this conflict we have tried to make sure that we can provide as much support to Ukraine as possible. We've demonstrated that again by providing our challenger tanks before others.

"We are now in dialogue with Ukrainians about how best to provide their tanks, make sure those troops get the training they need as well. Those conversations are happening, everything's going according to plan."

Olaf Scholz, the German Chancellor, this week bowed to international pressure as he confirmed he would send a company of Leopard 2 tanks to Ukraine.

05:22 PM

Shdaow health secretary welcomes Sir Rod with a pun

05:20 PM

The secret to Penny Mordaunt’s dazzling Commons speech? It’s love, actually

For the demoralised Tory MP, Penny Mordaunt's polite demolitions at Business Questions are a highlight of the weekly calendar, writes Madeline Grant.

It’s where forlorn backbenchers come to cheer themselves up and unsuspecting opposition members may, without warning, have their posteriors handed to them on a plate.

Last week, she had clobbered Sir Chris Bryant over his allegations of "manhandling" in the Chamber which later turned out to be fake news. This week, it was the turn of the SNP’s Deidre Brock, who had arrived with piteous demands for more cash and the evergreen plea for independence as a solution to all ills north of Hadrian’s Wall.

The Leader of the House delivered one of her trademark patriotic monologues, worthy of the prime minister from Love Actually.

Madeline Grant hails a speech worthy of Richard Curtis

05:06 PM

Sir Rod Stewart's support for Tories sails away

This in the last few minutes on Sky News:

04:35 PM

Breaking: GCHQ director to step down

Jeremy Fleming, the director of GCHQ, will step down next year, the spy agency has said in a statement.

04:31 PM

A new party may soon destroy our clueless political class

It will now take a miracle for the voters to forgive the Tories, writes Allister Heath. Our strike-addled NHS has imploded, with another 2,837 excess deaths in the most recent week.

Yet the Government's lack of empathy is shocking, its refusal to admit that we are in a major emergency baffling. What is the plan? Why aren’t hospitals being put into special measures, or a supremo brought in to tackle the crisis?

Do we even have a functional Government, or is it merely a Potemkin construct run by people who pretend to be in charge and enjoy the trappings of office, such as the chauffeur-driven cars and grace and favour residences, but are terrified of actually governing?

It’s not just the health service that is failing monstrously while the Tories watch uselessly: much of the rest of Britain is breaking too.

Allister Heath: Furious voters wish they could sweep the Tories - and Labour - away

04:13 PM

Sunak 'found wanting' over Zahawi row, says Truss ally

It's safe to say there is no shortage of schadenfreude among MPs who backed Liz Truss amid the Nadhim Zahawi row and Rishi Sunak's fine for not wearing a seatbelt in a moving car.

One former Cabinet minister who supported Ms Truss gets in touch to say: “You've got a Prime Minister who comes in trying to pretend that he’s different from Boris but ends up in exactly the same position.

“This is real life. Rishi and his acolytes are of this view there was a land of milk and honey. I’m afraid they have been found wanting.”

04:04 PM

Good afternoon

Dominic Penna here, The Telegraph's Political Reporter, guiding you through the rest of today.

Rishi Sunak and his Cabinet are currently meeting at Chequers for an away day to discuss how the Conservatives hope to win the next general election, as well as the "five pledges" he set out in his address to the nation at the start of this year.

We are likely to have an idea of what was discussed later on today - but, more immediately, a broadcast clip with Mr Sunak is expected any moment now.

03:28 PM

Government rows back on some Windrush commitments

Suella Braverman, the Home Secretary, today confirmed the UK Government is rowing back on some of the commitments made in the wake of the Windrush scandal.

In a written statement to Parliament, Ms Braverman said she would not be establishing a migrants’ commissioner, with two other pledges also dropped.

Ms Braverman said: "The Home Office regularly reviews the best way to deliver against the intent of Wendy Williams’ Windrush Lessons Learned review.

"As such, after considering officials' advice, I have decided not to proceed with Recommendations three (Run Reconciliation Events), nine (Introduce Migrants’ Commissioner) and 10 (Review the remit and role of the Independent Chief Inspector of Borders and Immigration (ICIBI)) in their original format."

03:22 PM

Rishi Sunak set to speak to broadcasters at Cabinet away day

Rishi Sunak's Cabinet away day at Chequers is currently ongoing as the Prime Minister meets with his top team to discuss his "five priorities" and the Tories' plan to win the next general election.

We are expecting Mr Sunak to speak to broadcasters shortly, with a clip likely to go out at about 4pm.

02:59 PM

Nicola Sturgeon vows to protect teacher numbers

Nicola Sturgeon said the Scottish Government will step in to prevent councils cutting teacher numbers to save money.

Speaking at First Minister’s Questions today, Ms Sturgeon said any move to cut teachers – which would be against an SNP election promise to increase numbers by more than 3,500 – "would not be acceptable".

The Scottish First Minister said the Education Secretary Shirley-Anne Somerville will outline the steps to be taken by the Scottish government "in the coming days".

Councils are currently devising their spending plans for the year ahead, with many looking to make savings - including through potentially cutting teacher posts.

02:17 PM

Jacob Rees-Mogg joins GB News

Jacob Rees-Mogg, the former Cabinet minister, is joining GB News in a major coup for the outspoken broadcaster.

The Conservative backbencher will host his own show on the network, debating current affairs and interviewing guests.

He will also take his show on tour, broadcasting in front of live audiences in towns and cities across the country.

You can read the full story here.

02:09 PM

Minister unable to talk publicly about efforts to restock donated military equipment

The UK's efforts to replenish military supplies donated to Ukraine are too sensitive to be talked about in public, a defence minister has suggested.

Alex Chalk told the House of Commons: "On the issue of restocking, she is right. She will understand that there are operational sensitivities which mean that I can’t go into the detail of exactly what is going to be restocked and when.

"But she will know, and the privy councillors including from the Opposition have been given a briefing on that, that is exactly what we should be doing to ensure that those who need to know these sensitive details are told what they properly can be."

01:17 PM

Lib Dems criticise Government over Boris Johnson partygate legal support

The Liberal Democrats have reacted with anger to the news that the Government is funding Boris Johnson's partygate legal defence to the tune of £222,000 (see the post below at 11.59).

Wendy Chamberlain, the party's chief whip, said: "While the British people battle with a cost-of-living crisis, this Conservative Government seems more interested in helping Boris Johnson with his cost-of-lying crisis. This is a sleazy new low for this Government, dragging politics into the gutter.

"People will be outraged that hundreds of thousands of pounds of their money will be used to defend a lying lawbreaker who disgraced the office of prime minister.

"Rishi Sunak needs to step in immediately, stop this fund and apologise for his Government's chaotic track record of defending the indefensible."

12:59 PM

UK to start tank training for Ukrainian soldiers next week

The UK will start training Ukrainian soldiers next week in how to use and fix the tanks which are being sent to the war-torn country.

Alex Chalk, a defence minister, told the Commons: "On the issue of training, I am pleased to say that is expected to start next week on Monday."

Mr Chalk said the Challenger 2 tanks donated to Ukraine by the UK would likely arrive there "at the end of March".

12:34 PM

Nicola Sturgeon says trans rapist will be moved from female prison

A transgender rapist is to be moved from a woman’s jail, Nicola Sturgeon has announced.

The First Minister said that Isla Bryson, who was convicted this week of raping two women, would not be in Cornton Vale women’s jail either “short-term or long-term”.

Bryson, 31, was taken to the women’s jail after being found guilty on Tuesday. Ms Sturgeon said that a risk assessment is currently being carried out.

However, she confirmed that Bryson would not serve the sentence in Cornton Vale, less than 24 hours after her Justice Secretary said that ministers would not intervene.

12:20 PM

'We have said that we would like to see the work completed as quickly as possible'

No10 would not be drawn on rumours that the ethics probe into Nadhim Zahawi could conclude within 10 days.

The Prime Minister's Official Spokesman said Rishi Sunak wants the work to be completed "as quickly as possible".

The spokesman said: "We have said that we would like to see the work completed as quickly as possible. That remains the case but ultimately the timeline is a matter for the independent adviser. We wouldn’t put a time constraint on him."

12:14 PM

'I obviously can’t pre-empt that'

Downing Street declined to comment on the remarks made by HMRC chief executive Jim Harra at the Public Accounts Committee this morning (see the post below at 11.11).

A spokesman for the Prime Minister referred reporters to Rishi Sunak’s remarks in the House of Commons yesterday.

"The independent adviser will establish the facts and provide advice to the PM and then he will obviously consider next steps. I obviously can’t pre-empt that. It is right that the independent adviser is allowed to continue with that work," he said.

11:59 AM

Government paying £222,000 legal fees for Boris Johnson's partygate defence

The Government now expects to pay up to £222,000 in legal fees for Boris Johnson’s defence against allegations he misled Parliament over partygate.

Solicitors firm Peters and Peters were awarded a contract worth £129,700 in August 2021 to provide Mr Johnson with advice during the investigation into his conduct by the House of Commons Privileges Committee.

At a meeting of the Commons Public Administration and Constitutional Affairs Committee this morning, Cabinet Office permanent secretary Alex Chisholm revealed that the amount had since been increased to £222,000.

Mr Chisholm said the amount had been increased due to the length of the Privileges Committee inquiry, and could rise again depending on how long the inquiry takes.

He said: "At the moment we have estimated that it would be up to a figure of £200,000, which has been published, £222,000 to be precise. We hope and expect that will be a maximum figure but obviously we don’t want to anticipate and certainly could not regulate the conduct of the committee, which is entirely up to them."

11:46 AM

HMRC will share Zahawi tax details with ethics probe if he gives permission to do so

HMRC would release details of Nadhim Zahawi’s tax affairs to Sir Laurie Magnus, the Prime Minister’s independent adviser on ministers’ interests, if the Tory chairman gives permission for the information to be shared with the ethics probe.

Jim Harra, the chief executive of HMRC, told MPs that HMRC will assist the investigation “in any way we possibly can” and specific information could be handed over if Mr Zahawi agrees.

Meg Hillier, the Labour chair of the Public Accounts Committee, asked Mr Harra: “With the various enquiries taking place, if you are given permission by the individual concerned, will you then provide information to those enquiries, to the ethics adviser?”

Mr Harra replied: “If we are asked by the independent adviser on ministerial interests to help with the enquiry, we will do so in any way we possibly can and if any person involved gives their consent for us to share information then that is something that we [can look at].”

11:21 AM

Culture Secretary: Football governance reforms to be unveiled in two weeks

Plans to reform football governance will be published in “two weeks’ time”, the Culture Secretary has said, as she was urged to press Premier League clubs to share more cash with grassroots clubs.

Michelle Donelan told the Commons this morning that the long-awaited fan-led review of football governance White Paper will be published within the next fortnight.

It is expected to include plans for an independent regulator, as recommended by the review.

11:11 AM

'There are no penalties for innocent errors in your tax affairs'

Nadhim Zahawi has not made an “innocent error” in his tax affairs, the head of HMRC has suggested.

Jim Harra, HMRC’s chief executive, told MPs on the Public Accounts Committee this morning that “there are no penalties for innocent errors in your tax affairs”.

Rishi Sunak has launched an ethics probe into Mr Zahawi over a multimillion-pound tax dispute the Tory chairman resolved by paying a penalty.

Mr Harra said: “I am not commenting on any particular person’s affairs but carelessness is a concept in tax law. It can be relevant to how many back years that we can assess and it 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.”

10:40 AM

Oliver Dowden says ministers could cut number of special advisers to save cash across Whitehall

Oliver Dowden suggested ministers could cut the number of special advisers they have as part of efforts to save money across Whitehall.

The Chancellor the Duchy of Lancaster told MPs that "we have got to absorb quite high levels of inflation so that is going to drive considerable efficiencies, have to drive efficiencies, across government if we are going to maintain frontline services".

William Wragg, the Tory chairman of the Public Administration and Constitutional Affairs Committee, asked Mr Dowden: "Will ministers and indeed permanent secretaries be leading by example? Will there be a reduction in the sizes of private offices or indeed the number of SpAds employed?"

Mr Dowden replied: "Nothing is off the table in doing so. You couldn't expect ministers to be exempt from doing so."

10:33 AM

Government still committed to reducing the size of the civil service - Dowden

Rishi Sunak scrapped a Government target of axing around 91,000 civil servants’ jobs last November, with the Prime Minister criticising "top-down targets" set under Boris Johnson.

Oliver Dowden, the Chancellor of the Duchy of Lancaster, told MPs this morning that the Government is still committed to reducing the size of the civil service.

He told the Public Administration and Constitutional Affairs Committee: "The Prime Minister and I are seized of the need to bring the size back down towards where it was after the reforms we introduced in 2010."

10:27 AM

Oliver Dowden dodges questions over Nadhim Zahawi tax row

Oliver Dowden, the Chancellor of the Duchy of Lancaster, is giving evidence to the Public Administration and Constitutional Affairs Committee this morning, specifically on the work of the Cabinet Office.

He was repeatedly asked by William Wragg, the Tory chairman of the committee, about the process by which ministers are vetted before they are appointed to roles - a point of interest in Westminster amid the row over Nadhim Zahawi's tax affairs.

Mr Dowden said he could not be drawn on questions seemingly related to the appointment of Mr Zahawi as Tory chairman.

Mr Wragg had said: "If the issue had been resolved previously under a different administration there is no reason why that issue would be flagged to a future prime minister, it would be solely dependent on a voluntary disclosure from that minister to the prime minister for them to have any knowledge of it at all?"

Mr Dowden replied: "Mr Wragg, as you know, I am trying to hold this careful line which is that I don’t want to in any way speculate on the facts of a case that is before the independent adviser. I think as a matter of abstract principle, that would be correct, but I think I'll have to leave it at that."

09:47 AM

'This dangerous rapist should not be in a women’s prison'

The shadow home secretary has said a transgender woman found guilty of raping two women before transitioning should not be remanded in a female prison in Scotland.

Yvette Cooper told the BBC Radio 4 Today programme: “This dangerous rapist should not be in a women’s prison and it should be clear that if someone poses a danger to women and committed crimes against women they should not be being housed in a women’s prison.

“That is straightforward and I think most people would agree with that.”

09:46 AM

'Putin is now the most disruptive force in Europe'

Tobias Ellwood, the Tory chairman of the Defence Select Committee, said that Western countries need to do more to back Ukraine.

Speaking to Sky News, Mr Ellwood said: "There is nothing the West has done to date that threatened Moscow’s agenda.

"We’re now starting to talk with the political will to actually give Ukraine the necessary hardware that it can start to fight back, but it’s taken a full year to muster this hardware."

He added: "We must recognise that Putin is now the most disruptive force in Europe and the penny really hasn’t dropped. I think it is always worth underlining how the UK has tried to push the envelope of what could be done."

09:29 AM

Jen Stoltenberg: Tanks for Ukraine will make a 'big difference'

Jens Stoltenberg, Nato's secretary general, said sending tanks to Ukraine will make a "big difference" to the country’s ability to win the war against Russia.

Mr Stoltenberg told the BBC Radio 4 Today programme: "Battle tanks are going to make a big difference.

"This will help them repel Russian offensives, to help them to be able to retake territory, liberate more Ukrainian lands and to win this war to prevail as a sovereign independent nation. We will stand by Ukraine for as long as it takes.”

09:01 AM

'We have good relations with Sunak'

Volodymyr Zelensky said he has a "special" relationship with Boris Johnson but the Ukrainian President declined to back the idea of the former premier running to be PM again.

Mr Zelensky said he has "good relations" with Rishi Sunak.

Asked if he would offer his support to Mr Johnson if he decided to try to be PM again, Mr Zelensky told Sky News: "I think that it is not correct for me to support Johnson to be a prime minister when Rishi is Prime Minister. It is not correct. I am sorry.

"We have good relations with Sunak. I think we had more long relations with Johnson because it was more of a long time and of course we were in difficult times in the first days of fullscale invasion, that is why I saw Johnson in different situations.

"I saw him not in war and then in full scale war. That is why we have special relations."

08:43 AM

Volodymyr Zelensky would welcome 'good guy' Boris Johnson as UK ambassador to Ukraine

Volodymyr Zelensky, the Ukrainian President, has said he would welcome Boris Johnson to be the UK's ambassador to Ukraine "with pleasure".

Mr Zelensky was asked during an interview with Sky News if he would like to see Mr Johnson have an official role as a UK Government envoy to Ukraine.

He replied: "Embassy, he will be ambassador for Britain in Ukraine? With pleasure. He is a good guy. I am not sure that he is ready for such things but who knows. With pleasure. With pleasure, really."

08:33 AM

Lord O'Donnell labels level of government debt interest being paid 'crazy'

Lord O'Donnell, the former Cabinet secretary, said the amount of debt interest the Government is currently having to pay is "crazy".

The Office for National Statistics revealed earlier this week that central government debt interest payable in December last year was £17.3 billion as borrowing and debt levels continued to soar.

There have been reports that the state of the public finances will prompt Jeremy Hunt to rule out any tax cuts at the Budget in March.

Asked if he agreed with the idea of no tax cuts, Lord O'Donnell, who also served as permanent secretary to the Treasury, told LBC Radio: "Well, I think the point about tax cuts is that they have to be affordable. There is a sense in which you can’t be a country with Scandinavian-style wonderful public services and very low US-style taxes.

"It just doesn't add up. That means that you borrow a lot which means that we get to the situation we are in now where debt interest, the interest we are paying on our debt is the second largest government spending programme. That is crazy.

"We need to get the borrowing down so I am with the Chancellor there but actually if we want the public services that I think people are demanding of a rich society like ours then you have to pay for them one way or the other and doing it through taxation is probably the best way."

08:21 AM

Cabinet minister suggests Zahawi ethics probe could conclude within 10 days

Mel Stride, the Work and Pensions Secretary, said the investigation into Nadhim Zahawi's tax affairs could be concluded within 10 days.

Rishi Sunak ordered an investigation by Sir Laurie Magnus, his independent adviser on ministers’ interests, into the Tory chairman but No10 has not set a firm deadline for the probe to conclude.

However, there have been rumours which suggested it could be finished within 10 days.

Asked about the rumours last night during an interview on ITV's Peston programme, Mr Stride said it "wouldn’t be untypical" for Sir Laurie to operate in that timeframe.

He added: "I can’t be drawn on an arrangement of which I don’t know all the details. But the good news is that we will, in around it sounds like ten days’ time or thereabouts, hear from the ethics adviser, who will report to the Prime Minister, the Prime Minister will then have the facts and be able to make exactly those judgments."

08:17 AM

Rishi Sunak set to hold Cabinet away day at Chequers

Rishi Sunak will gather his most senior ministers at Chequers today as he tries to stabilise his premiership and plot a path to victory at the next general election.

The meeting at the PM's grace and favour country house in Buckinghamshire is due to get underway at noon and it will see ministers discuss the progress being made towards the premier's "five priorities" which he set out in a big speech earlier this month.

There will also be a political Cabinet held, where ministers discuss political matters without officials present, which will look at what the Tories need to do to gain ground on the Labour Party.