Zahawi backed by minister to stay on

NADHIM Zahawi should not have to step aside as Conservative Party chairman while an ethics investigation into his tax affairs takes place, according to a minister.

It comes after a senior Tory MP broke ranks to call for Mr Zahawi to “temporarily recuse himself” from his party and Cabinet role until a probe into his conduct is over.

Caroline Nokes, chairwoman of the Commons Women and Equalities Committee, told BBC Breakfast that Mr Zahawi should “stand aside until this matter is all cleared up”.

Home Office minister Chris Philp said Mr Zahawi should be treated as “innocent until proven guilty” and it is “reasonable” for him to continue as party chairman.

Announcing the ethics probe into Mr Zahawi on Monday, Prime Minister Rishi Sunak said it is “long-standing practice” for ministers being investigated to remain in post.

Mr Zahawi is subject to an inquiry by the new independent adviser on ministers’ interests, Sir Laurie Magnus, into declarations about his tax affairs. He resolved a multi million-pound tax dispute with HMRC by paying a penalty – reportedly around 30% of a £5 million settlement – while serving as chancellor under former prime minister Boris Johnson.

After Mr Sunak entered Downing Street in October, he appointed Mr Zahawi Conservative Party chairman and minister without portfolio, allowing him to attend Cabinet.

Policing minister Mr Philp said it is his understanding that Mr Sunak was told there were “no outstanding issues” in relation to Mr Zahawi’s tax affairs when appointing him to the roles in the autumn.

Mr Philp, asked on BBC Breakfast about Ms Nokes’ call for Mr Zahawi to step aside during the investigation, said: “I don’t take that view.”

He added: “We do have a principle, don’t we, in this country... innocent until proven guilty. That applies to a whole range of different circumstances. The investigation has been launched by the Prime Minister; that is the right thing to do.

“It will get to the bottom of this and then the Prime Minister will make his decision. But I don’t think it is fair to jump to any conclusions before the investigation has concluded.”

Sir Laurie is expected to focus on Mr Zahawi’s ministerial declarations as part of his first probe since being appointed, but the investigation could extend to his prior tax arrangements and whether he lied to the media.

Mr Philp said it will be for the ethics tsar to find out “the facts” behind what amounts to “carelessness” on Mr Zahawi’s part when it came to reporting his financial affairs to HMRC.

He told BBC Radio 4’s Today programme: “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.”

Downing Street said yesterday it hoped the investigation could be carried out “swiftly”.