Seven occasions when Nadhim Zahawi broke the ministerial code
Ministerial Code #MinisterialCode
The prime minister’s ethics adviser, Sir Laurie Magnus, identifies seven occasions on which Nadhim Zahawi breached the ministerial code by failing to be open about his tax affairs.
April 2021 HMRC commenced its investigation of Zahawi’s tax affairs, which included a meeting with him and his tax advisers in June 2021. Zahawi, who was a business minister at the time, told Magnus he was under the impression he was “merely being asked certain queries”. Magnus says he should have understood it was a “serious matter”, informed his permanent secretary, and disclosed it in his ministerial declaration of interests.
September 2021 Zahawi was promoted to education secretary by Boris Johnson. He did not declare the ongoing HMRC investigation into his tax affairs, Magnus says, “despite the ministerial declaration of interests form including specific prompts on tax affairs and HMRC investigations and disputes”.
5 July 2022 After he was appointed chancellor, Zahawi completed another declaration of interests form, which again “contained no reference to the HMRC investigation”. Only after receiving a formal letter from HMRC on 22 July did he fill in a “later form” acknowledging that he was “in discussion” with HMRC, in an attachment.
10 July 2022 After a number of press reports about his tax affairs, Zahawi said publicly: “There have been news stories over the last few days which are inaccurate, unfair and are clearly smears.” He did not correct the record until earlier this month. Magnus finds this to have been “inconsistent with the requirement for openness” on ministers.
August 2022 Zahawi reached an in-principle agreement with HMRC while he was still chancellor, including a penalty. He finally settled the following month. Magnus finds that this fact “requires declaration and discussion” and is ”a relevant interest which could give rise to a conflict”, particularly for a Treasury minister.
September 2022 Liz Truss appointed Zahawi to the role of chancellor of the duchy of Lancaster in her short-lived government. Again, he failed to declare the HMRC investigation or the penalty he had agreed to pay.
October 2022 Zahawi was handed the job of chair of the Conservative party by Rishi Sunak. Yet again, he did not make a declaration about his tax affairs.