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

Stratford-upon-Avon MP sacked by Rishi Sunak after ethics inquiry finds he committed ‘serious breach’ of standards

Nadhim Zahawi has been sacked as Conservative Party chairman by prime minister Rishi Sunak after an ethics inquiry led by Sir Laurie Magnus concluded that he had committed a “serious breach” of the standards expected of him as a minister.

Mr Zahawi last week admitted paying a settlement to the HMRC to end a tax dispute last summer while he served as chancellor of the exchequer, despite having tired to silence journalists who questioned him about the matter with threats of legal action.

A row duly erupted over the reported seven-figure sum he was understood to have paid to settle the matter, which heaped pressure on Mr Sunak to sack the former businessman and MP for Stratford-upon-Avon.

Labour leader Sir Keir Starmer said Mr Zahawi’s position as Tory Party chair was “untenable” and urged the PM to “show some leadership” by sacking him.

That finally happened on Saturday morning in response to Sir Laurie’s letter to Mr Sunak detailing his findings, which found that Mr Zahawi and had missed several opportunities to come clean on the matter.

Mr Zahawi responded with a letter of his own stressing his pride in serving the government, citing his role in the Covid-19 vaccine rollout and the planning of the late Queen’s funeral as personal high points, but did not express a single word of regret or contrition and concluded by attacking the press over its reporting of the affair.

It is not the first time Mr Zahawi has been embroiled in controversy.

Below, we look at some of the occasions he has hit the headlines for the wrong reasons.

Pays settlement to HMRC to settle tax dispute

Mr Zahawi initially hoped to downplay the affair that finally saw him removed from Cabinet.

He released a statement on 21 January to “address some of the confusion about my finances” after it was reported that he had paid HMRC a seven-figure sum to end the dispute, surrounding his shareholding in YouGov, an institution he helped found.

But the statement only raised further questions, including whether Mr Zahawi negotiated the settlement when he was chancellor and in charge of the country’s taxation.

The investigation into Mr Zahawi’s finances was first revealed by The Independent last July when it emerged he was being probed over the sale of shares in the polling company.

Mr Zahawi has not disclosed the size of the settlement but it is reported to be an estimated £4.8 million plus a 30 per cent penalty.

The writing appeared to be on the wall for him as soon as Mr Sunak announced Sir Laurie’s inquiry, saying he had “questions to answer”, and that duly proved to be the case.

He previously served as chancellor - briefly (PA)

‘Blocked from knightood’ over tax affairs

January’s tax row has reportedly scuppered Mr Zahawi’s chances of getting a knighthood.

He was due to receive the honour in this month’s New Year’s Honours List but was later blocked after Whitehall officials checked with the HMRC about his tax situation in December, The Sun on Sunday reported.

Tax campaigner Richard Murphy, professor at Sheffield University Management School, told The Independent that HMRC has the power to highlight tax disputes for people due to receive an honour.

“They have the power to advise the security services, No 10, Cabinet Office about potential risks with appointments,” he said.

Mr Zahawi used tax payers’ money to heat his stables (Reuters)

Using taxpayer cash to heat his stables

Mr Zahawi was one of many politicians to get caught up in the MPs expenses scandal in 2009 after it emerged that taxpayers were footing the bill so he could heat his stables.

The Warwickshire MP claimed he was “mortified” that his £5,822 expenses claim for his energy bills was used to cover electricity and heating oil for his estate in the county, which was designated a second home.

In a statement issued at the time, he said: “Since last week’s coverage of my energy bills I have been looking into them further and can confirm that all claims for heating fuel relate purely to my second home.

“However, I have made a mistake with my electricity claims. On investigation I have discovered that the electricity supply for a mobile home located in the stable yard and for the stables themselves was linked to my house.

“Whilst a meter was installed in the stable yard I have only been receiving one bill, it was wrong to assume I was receiving two and to have not checked this sooner.

“I am mortified by this mistake and apologise unreservedly for it.”

Attending men-only Presidents Club dinner

Mr Zahawi was also given a “dressing down” during a meeting with Tory chief whip Julian Smith in January 2018 after attending a men-only dinner where reports emerged of hostesses being groped and harassed by guests.

The allegations at the Presidents Club dinner emerged after an undercover investigation by The Financial Times.

The accusations were branded “a gross example of sexual harassment”, by then-Labour leader Jeremy Corbyn.

Mr Zahawi reportedly said he found the dinner “extremely uncomfortable” and left the function early.

In response, he wrote on social media: “I do unequivocally condemn this behaviour. The report is truly shocking. I will never attend a men-only function ever.”

Additional reporting by agencies