Zahawi not planning to resign over tax as Sunak comes under pressure

Nadhim Zahawi is not planning to resign as Conservative Party chairman despite paying a penalty to resolve a tax dispute with HMRC. An ally said on Monday that the former

chancellor “absolutely” will not be quitting in the face of growing pressure over his settlement, estimated to be around £5 million. Rishi Sunak has been urged by Labour to

sack Mr Zahawi, whom he brought back into a Cabinet-attending role after entering No 10. The Prime Minister faces questions about the appointment as his promise of a

premiership of “integrity” was thrown into disarray by a series of scandals. A source close to Mr Zahawi did not answer questions on the penalty but said: “He is absolutely

not resigning.” Mr Zahawi has insisted his “error” over shares in the YouGov polling company he co-founded was “careless and not deliberate” . The BBC was told that Mr

Zahawi did pay a penalty – reported by the Guardian to be around 30% – taking the total estimated settlement to around £4.8 million. The broadcaster confirmed the dispute

was resolved while Mr Zahawi was chancellor, between July and September, and ultimately the minister in charge of HMRC. Labour has called for Mr Zahawi to be sacked and for

Mr Sunak to “come clean” on what he knew about the minister’s tax affairs when he appointed him party chairman. A challenging weekend for Mr Sunak began when police fined

him for failing to wear a seatbelt as he filmed a social media clip from the back of a moving car. The Sunday Times then reported that BBC chairman Richard Sharp helped

Boris Johnson secure a loan weeks before recommending him for the role.