Nadhim Zahawi – live: Tory chair ‘is toast’ as senior MP calls for him to ‘stand aside’

Tory MPs are doubtful of Nadhim Zahawi’s future as party chair as questions continue over his tax affairs.

Several MPs said they thought Mr Zahawi’s days were numbered after he admitted to paying a settlement to HMRC after a “careless” error.

In comments to Sky News, one former cabinet minister said: “He’s toast.”

Another questioned whether Rishi Sunak should stand firmly by his appointment’s side, saying: “I’m not sure the PM needs to use up much political capital on him.”

The prime minister has ordered an ethics probe to determine whether Mr Zahawi broke the ministerial code with his disclosures about the settlement.

Here are the written ministerial statements due to be made in the Commons on Tuesday:

• Secretary of State for Levelling Up, Housing and Communities: Local Government Update
• Secretary of State for Foreign, Commonwealth and Development Affairs: Organization for Security and Co-operation in Europe
• Secretary of State for Health and Social Care: Government Action on Major Conditions and Diseases
• Secretary of State for the Home Department: Proposals to Strengthen the Response to Serious and Organised Crime
• Secretary of State for Justice: Inspectorate reviews into serious further offences

Under fire Conservative chair Nadhim Zahawi arrived at his party’s headquarters this morning amid mounting calls for him to resign over his tax affairs.

Rishi Sunak, the prime minister, has ordered his new ethics advisers to investigate Mr Zahawi after the Stratford-on-Avon MP admitted agreeing a multimillion-pound settlement with HMRC over unpaid tax relating to shares in YouGov – the polling company he co-founded.

The cabinet minister without portfolio looked straight-faced when showing up at Conservative Party Campaign HQ , near the Houses of Parliament, central London on Tuesday morning.

Mr Zahawi has vowed to continue in his job despite it emerging that part of his settlement was a fine, which was paid during his short-lived sting as chancellor during the summer

Mr Sunak, who told the Commons last week Mr Zahawi had addressed the matter in full, said yesterday there are “clearly questions that need answering”.

Joe Sommerlad looks at the man who rose from the ashes of Boris Johnson’s premiership:

It is for the prime minister’s ethics adviser to find out “the facts” behind Nadhim Zahawi‘s tax dispute, a minister has said.

Policing minister Chris Philp made the comments when told on BBC Radio 4’s Today programme that Gov.UK states that “carelessness” with tax affairs can be likened to the “longstanding concept in the general law of negligence”.

Asked whether the prime minister found it acceptable for a senior member of the government to be “negligent in their tax affairs”, Mr Philp told the programme: “We’ve got this word ‘careless’ that has been put into the public domain.

“We don’t know exactly what it was that that carelessness represents.”

After further questions, the minister added: “You’re effectively inviting me to speculate on exactly what happened.

“I don’t know exactly what happened, I don’t know what form that carelessness took and nor probably does anybody else apart from HMRC and Mr Zahawi. So let’s find out the facts.”

Chris Philp said he did not think Nadhim Zahawi should have to step aside as Conservative Party chairman while an ethics investigation into his tax affairs takes place – directly condradicting the view of former minister Caroline Nokes.

The policing minister was told on BBC Breakfast that Ms Nokes, Tory chair of the Commons Women and Equalities Committee, had used a BBC interview to call for Mr Zahawi to recuse himself until the probe is over.

Shadow foreign secretary David Lammy said it was “unacceptable” for Nadhim Zahawi to remain as Tory chair after his tax revelation.

Speaking to Times Radio, Mr Lammy added that a former chancellor of “any previous government” in the same situation would have “stepped down or resigned or would have been sacked”.

He said members of the public are expected to pay their taxes and questioned why there should be “another rule” for Mr Zahawi.

“It pays for our nurses, it pays for our teachers, our schools, our hospitals, our local services,” he said of taxes.

“That is why it is important to pay your tax.”

Here’s Home Office minister Chris Philp speaking to Times Radio about the Nadhim Zahawi scandal and Rishi Sunak’s decision to investigate his party chair:

The identity of the Whitehall “international tax detective” credited with making Nadhim Zahawi pay £5m – including a £1m penalty – to HM Revenue and Customs can be revealed by The Independent.

Tom Gardiner, who was awarded the OBE in 2018 for a lifetime spent fighting tax crime, led a two-year investigation into Mr Zahawi.

The inquiry, which started in 2020, is believed to have been ongoing when, as chancellor of the Exchequer, Mr Zahawi was responsible for HMRC.

Mr Gardiner, HMRC assistant director, is the “intelligence lead” of its “offshore directorate”.

Home Office minister Chris Philp said Rishi Sunak was told there were “no outstanding issues” in relation to Nadhim Zahawi’s tax affairs when appointing him Conservative Party chair in the autumn.

The prime minister is under pressure to disclose what he knew about Mr Zahawi’s tax trouble and when. Mr Sunak called an ethics inquiry into the Tory chair’s tax affairs after it emerged that he resolved a multimillion-pound tax dispute with HMRC by paying a penalty while serving as chancellor.

Speaking to Times Radio, Conservative MP Mr Philp said: “As far as I’m aware, the point at which Nadhim Zahawi was appointed to his current position by the current Prime Minister, the Prime Minister was not aware of the previous back-and-forward earlier in the summer.

“And he was told there were no outstanding issues – taxation issues – applicable at that time.