Nadhim Zahawi has been sacked as Conservative Party chairman by Prime Minister Rishi Sunak, after an ethics inquiry into the handling of his tax affairs found a "serious breach" of the Ministerial Code.
It comes after the PM ordered an investigation into Mr Zahawi by Sir Laurie Magnus, his independent adviser on ministers' interests, following reports that the Tory chairman had paid a penalty as part of a dispute with HMRC. In a letter to Mr Zahawi, Mr Sunak said the findings of Sir Laurie made it "clear that there has been a serious breach of the ministerial code".
The letter said: "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. 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."
In a letter to the Prime Minister following his sacking, Mr Zahawi did not explicitly mention the findings of the ethics inquiry into his tax affairs. But he tells Mr Sunak that he is concerned "about the conduct from some of the fourth estate in recent weeks", in a reference to the media.
He said: "It has been, after being blessed with my loving family, the privilege of my life to serve in successive governments and make what I believe to have been a tangible difference to the country I love."
In comments that appear to indicate that the former chancellor holds out little prospect of returning to office in the years to come, he said: "You can be assured of my support from the backbenches in the coming years. Your five priorities are the right priorities, and I will do whatever I can to help you deliver them."
In a letter to the Prime Minister, Sir Laurie Magnus told Rishi Sunak that certain "omissions" by Nadhim Zahawi fell short of the standards set out in the ministerial code.
In his report, dated January 29, Sir Laurie wrote: "Given the nature of the investigation by HMRC, which started prior to his appointment as Secretary of State for Education on September, 15, 2021, I consider that by failing to declare HMRC's ongoing investigation before July 2022 - despite the ministerial declaration of interests form including specific prompts on tax affairs and HMRC investigations and disputes - Mr Zahawi failed to meet the requirement to declare any interests which might be thought to give rise to a conflict."
Sir Laurie also told the PM: "I also conclude that, in the appointments process for the governments formed in September 2022 and October 2022, Mr Zahawi failed to disclose relevant information - in this case the nature of the investigation and its outcome in a penalty - at the time of his appointment, including to Cabinet Office officials who support that process. Without knowledge of that information, the Cabinet Office was not in a position to inform the appointing Prime Minister. Taken together, I consider that these omissions constitute a serious failure to meet the standards set out in the ministerial code."
He concluded: "I consider that Mr Zahawi, in holding the high privilege of being a Minister of the Crown, has shown insufficient regard for the General Principles of the Ministerial Code and the requirements in particular, under the seven Principles of Public Life, to be honest, open and an exemplary leader through his own behaviour."
