Nadhim Zahawi committed a serious breach of ministerial code, says Sunak

Nadhim Zahawi has been sacked from government amid mounting pressure over his tax affairs.

The prime minister said an inquiry into Mr Zahawi’s financial affairs showed there was a “serious breach of the ministerial code”.

Rishi Sunak ordered the investigation after it emerged Mr Zahawi paid a penalty to HMRC while he was chancellor, over previously unpaid tax.

Mr Zahawi had said HRMC accepted it was a “careless and not deliberate” error.

In a letter to Mr Zahawi, Mr Sunak said the MP could be “extremely proud of your wide-ranging achievements in government over the last five years”.

He specifically cited Mr Zahawi’s work overseeing the Covid vaccine, saying it was “critical to ensuring our country came through this crisis and saved many lives”.

Mr Zahawi had come under increased scrutiny after he confirmed he had made a payment to settle a dispute with HM Revenue & Customs (HMRC).

The BBC understands the dispute was resolved between July and September last year, when he was chancellor and in charge of the tax system.

The total amount paid was in the region of about £5m, including a penalty, the BBC understands.

On Monday, Mr Sunak had asked his independent ethics adviser, Sir Laurie Magnus, to look into the disclosures about Mr Zahawi’s tax affairs, saying there were “questions that need answering”.

In his findings, sent to Mr Sunak on Sunday morning, Sir Laurie said Mr Zahawi had shown “insufficient regard for the principles of 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”.

“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.”

Nadhim Zahawi’s tax affairs have been a headache for the government for the past 10 days.

Rishi Sunak has argued that due process is important. But he’s faced accusations he was weak for not acting earlier to get rid of Mr Zahawi.

The PM got the report from his ethics adviser early this morning. He spoke to Mr Zahawi to tell him he was being sacked, then it was confirmed publicly.

The report from Sir Laurie Magnus left little room for any other conclusion than Mr Zahawi’s departure.

He said Mr Zahawi showed insufficient regard for the principles ministers are expected to follow.