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Lizzy Buchan & Ashley Cowburn & Aaron Morris

Nadhim Zahawi sacked by Prime Minister Rishi Sunak following Tory tax row

Nadhim Zahawi has been sacked as Tory Chairman over a 'serious breach' of the ministerial code. It comes amid a major row over his tax affairs.

The top minister faced fire following the settlement of a multimillion tax dispute with the HMRC, while he was working as Chancellor last summer.

In a letter to Nadhim today, Prime Minister Rishi Sunak said that an ethics probe via an independent adviser revealed it is 'clear there has been a serious breach of the ministerial code'.

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Mr Sunak, who was branded 'weak' for failing to sack the Tory Chairman last week, finally said he had made the decision to 'remove' Mr Zahawi from the Government. Last week Mr Sunak attempted to defuse the sleaze row by ordering his ethics advisor Sir Laurie Magnus to launch a probe - only days after he told MPs that the matter had been resolved.

In his letter to the Prime Minister, Sir Laurie said Mr Zahawi confirmed that a dispute with HMRC had been resolved in August 2022 with a settlement signed the following month. He said Mr Zahawi had shown 'insufficient regard' for the principles of the ministerial code.

Sir Laurie added: "I want to commend Mr Zahawi for his willingness to assist with my inquiry. I also fully appreciate the pressures faced by Ministers as they address the complex issues of government and the difficulties they encounter in balancing the demands of their personal lives and their ministerial responsibilities.

"These factors, however, cannot mitigate my overall judgement that Mr Zahawi’s conduct as a Minister has fallen below the high standards that, as Prime Minister, you rightly expect from those who serve in your government."

Earlier No10 was forced to deny claims Mr Sunak was warned of the possible reputational risk to the Government over the appointment of Nadhim Zahawi. According to The Observer, Mr Sunak, who became Prime Minister in October after Liz Truss's Government imploded, was warned over Mr Zahawi's tax affairs.

It was claimed Government officials gave Mr Sunak informal advice when he was drawing up his top team regarding the risks from an HMRC investigation. However, a No10 spokesperson said: "These claims are not true. The Prime Minister was not informed of these details, informally or otherwise."

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