Labour calls for Nadhim Zahawi to be sacked after Tory Party chairman made to pay ‘million pound’ fine to taxman

21 January 2023, 00:51 | Updated: 21 January 2023, 01:52

Labour has called on the Prime Minister to sack Mr Zahawi
Labour has called on the Prime Minister to sack Mr Zahawi. Picture: Alamy

By Emma Soteriou

Labour has called for Nadhim Zahawi to be sacked after he was made to pay a ‘million pound’ fine to the taxman.

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Mr Zahawi faced fresh questions over his tax affairs after he was accused of paying a penalty as part of a multi-million pound settlement with HMRC.

The former Chancellor, who attends Rishi Sunak's Cabinet, has been under pressure since it was reported that he paid a seven-figure sum to end a dispute.

The Guardian reported that he paid a 30% penalty, taking the estimated total to more than £4.8 million.

Labour said his position was "untenable" and the prime minister must sack him.

Both Mr Zahawi's team and the Conservative Party were contacted about the latest allegation. Neither have responded to rebut the report.

Read more: Rishi Sunak 'fully accepts mistake' and will pay fine for not wearing seatbelt while filming video in moving car

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Caller slams Tory PMs and Chancellors past and present amid the row over Nadhim Zahawi's tax affairs

Deputy Labour leader Angela Rayner said: "Rishi Sunak promised a Government of integrity, professionalism, and accountability but instead he's propping up a motley crew of scandal-ridden ministers.

"Nadhim Zahawi's story doesn't add up. The position of the man who was until recently in charge of the UK's tax system and who this Prime Minister appointed Conservative Party chair is now untenable.

"It's time for Rishi Sunak to put his money where his mouth is and dismiss Nadhim Zahawi from his Cabinet."

Michael Gove: Nadhim Zahawi has paid all his taxes - that's a good thing

A spokesman for Mr Zahawi has previously said his taxes are "properly declared and paid in the UK" and the minister "has never had to instruct any lawyers to deal with HMRC on his behalf".

Mr Sunak also defended his ally, telling Prime Minister's Questions on Wednesday that Mr Zahawi "has already addressed this matter in full and there's nothing more that I can add".

The Prime Minister's press secretary said Mr Zahawi "has spoken and been transparent with HMRC".

On whether Mr Sunak believes the matter is now closed, she said: "I don't know whether the Prime Minister has reviewed it in full, but I do know that he takes Nadhim Zahawi at his word."

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