Sunak faces flak over party chair
RISHI SUNAK has suggested it would have been “politically expedient” to sack Nadhim Zahawi, but insisted that “due process” means the investigation into his tax affairs should be allowed to reach its conclusion.
The Prime Minister acknowledged that he had not been given the full picture about the Tory chairman’s financial matters when he told MPs last week that Mr Zahawi had given a “full” account – but he insisted yesterday that, when he entered No 10 and gave Mr Zahawi the job of Minister Without Portfolio, “no issues were raised with me”.
Downing Street was unable to say whether Mr Sunak fears further damaging surprises about Mr Zahawi’s tax affairs will emerge, and refused to rule out the Prime Minister ever having paid a tax penalty.
At Prime Minister’s Questions, Mr Sunak was challenged over Mr Zahawi’s tax affairs for the second week running by Labour leader Sir Keir Starmer, who claimed he is too “weak” to sack his embattled party chairman.
Mr Sunak said: “Of course, the politically expedient thing to do would be for me to have said that this matter must be resolved by Wednesday at noon, but I believe in proper due process.”
Mr Sunak has ordered an investigation by Sir Laurie Magnus, his independent adviser on ministers’ interests, into whether Mr Zahawi broke ministerial rules over the estimated £4.8 million bill he settled with HM Revenue & Customs (HMRC) while he was chancellor.
A week ago, Mr Sunak told MPs that Mr Zahawi had “already addressed the matter in full” – but Downing Street subsequently revealed the Prime Minister had not been aware that the Conservative Party chairman had paid a penalty to HMRC as part of the settlement.
Mr Sunak said: “Since I commented on this matter last week, more information, including a statement from the Minister Without Portfolio, has entered the public domain, which is why it’s right that we do establish the facts.”
Sir Keir made a veiled reference to Mr Sunak’s billionaire wife, Akshata Murty, who has held nondomiciled status, as he suggested the job in No 10 is “too big” for Mr Sunak.
The Labour leader said: “We all know why the Prime Minister was reluctant to ask his party chair questions about family finances and tax avoidance. But his failure to sack him when the whole country can see what’s going on shows how hopelessly weak he is – a Prime Minister overseeing chaos, overwhelmed at every turn.”
Sir Keir added: “I think anybody watching would think it’s fairly obvious that someone who seeks to avoid tax can’t also be in charge of tax. Yet for some reason the Prime Minister can’t bring himself to say that or even acknowledge the question.”
The row prompted further questions about Mr Sunak’s own financial affairs, with his press secretary refusing to say whether Mr Sunak has also paid a penalty to HMRC, as he prepares to publish his tax returns in a transparency attempt.