Tag Archives: Rishi Sunak

Journalist Sums Up Political Scandals In One Comment: ‘Very Rich People Using Law To Evade Scrutiny’

Posted on by
Reply

A journalist summarised the exact problem with the recent string of Tory scandals on BBC Question Time on Thursday.

Alison Phillips, the editor of the Daily Mirror, was discussing Tory Party chair Nadhim Zahawi’s taxes, which have been in the spotlight over the last week.

Zahawi was reported to have paid a multi-million pound penalty to HMRC over his taxes last year, around the time he became chancellor under Boris Johnson.

The Tory Party chair has not disclosed the size of the settlement – believed to be an estimated £4.8 million including a 30% penalty – or confirmed whether he paid a fine.

Since the issue came to light, prime minister Rishi Sunak has ordered his independent ethics adviser to investigate it – as there are “questions” which need “answering” – but has not yet asked Zahawi to step down from his role.

Phillips began: “Surely, Rishi Sunak must have called him [Zahawi] in and said, ’Hang on a minute, how come I’ve just found out that what you said to me last week was not the whole truth?

″‘And you’ve made me look an absolute clown, you’ve caused distrust in the country’ – and this is continuing.”

She also said the idea which really “cuts” through for her, was that last July Zahawi was using “his very expensive lawyers to send out letters to get journalists and investigators to stop looking at this”.

This is a reference to when reports first started to suggest that Zahawi was the subject of an investigation by the National Crime Agency and HMRC.

The senior Tory denied knowledge of this, later saying that these stories were “inaccurate, unfair” and “clearly smears”.

Phillips said these threats of being sued is seen all over the country right now, as ″very rich people are using the law to evade proper scrutiny.”

“The idea that we’ve got someone in our government doing that, it’s just appalling, it stinks,” she added.

She mentioned that Sunak promised to introduce “integrity, professionalism and accountability” into the heart of government when he was elected as Tory leader back in October, as that’s what we as a country “deserve” and “want”.

“He’s let himself down, he’s allowed one of his closest advisers to let him down, and I think it’s a real shame for all of them,” the journalist concluded.

Share Button

Nadhim Zahawi ‘Owed Tax Man £5 Million’, Claims Tory Minister

Posted on by
Reply

Nadhim Zahawi owed the tax man £5 million while he was chancellor, according to a government minister.

Chris Philp’s comments, in a radio interview, are the first time any government official has confirmed the size of the settlement the Tory party chairman reached with HMRC.

It is unclear how much of the total payment was the penalty Zahawi was given for failing to pay his taxes on time.

But appearing on Radio Four’s Today programme this morning, Philp took issue with the presenter, Mishal Husain, when asked about the scandal.

In a statement at the weekend, Zahawi said HMRC had agreed that his error had been “careless and not deliberate”.

Philp said: “I don’t know precisely what form that carelessness took – neither do you.”

Presenter Mishal Husain replied: “He paid a penalty for it, the settlement was in the region of £5 million.”

Philp then replied: “I think that was the amount of tax owed, wasn’t it?”

Share Button

Nadhim Zahawi Should ‘Stand Aside’ Amid Tax Affairs Probe, Tory MP Says

Posted on by
Reply

Nadhim Zahawi should “stand aside” ahead of a probe into his tax affairs, a Tory MP has said.

Former minister Caroline Nokes has called on the Conservative party chairman to recuse himself until the investigation is over.

Rishi Sunak has asked his independent ethics adviser to look into Zahawi, as the saga surrounding his taxes engulfs the government.

Nokes, chairwoman of the Commons women and equalities committee, told TalkTV she welcomed the investigation.

“I think there are too many unanswered questions,” Nokes said.

“The challenge for Nadhim is – look at the front pages, he’s leading too many of them.

“When you become the story it’s a distraction from anything else that the government is trying to do.

“There are countless examples of good, competent Cabinet colleagues who’ve got themselves in a mess, who have resigned quickly and come back, really in some instances just a few months later.

“In order to get this cleared up Nadhim should stand aside and let the investigation run its course.”

However, home office minister Chris Philp hit back, saying he did not think Zahawi should have to step aside while the investigation takes place.

Philp told BBC Breakfast: “I think it is reasonable that where there is an investigation, the person concerned is allowed to continue serving while that investigation continues.

“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.”

Pushed on Nokes’ call for Zahawi to stand aside, the minister added: “I don’t take that view, I think we should let the investigation play out.”

Zahawi is facing calls to quit after it emerged he resolved a multimillion-pound tax dispute with HMRC by paying a penalty while serving as chancellor.

Claims started emerging when Zahawi was made chancellor, with reports suggesting Cabinet Office officials alerted the then-prime minister Boris Johnson to a HMRC dispute.

Zahawi has admitted he paid what HMRC said “was due” after it “disagreed about the exact allocation” of shares in YouGov, an error he said was “careless” not deliberate.

Nadhim Zahawi’s Taxes Explained

The allegations surround Zahawi’s links to a Gibraltar-based trust called Balshore Investments Limited – of which his father Hareth is a director.

When YouGov was co-founded by Zahawi, the trust was allocated shares equalling the number given to his co-founder Stephan Shakespeare.

Asked about this last year, the then chancellor said neither he nor his wife benefitted from the trust and denied it was used to avoid tax, saying it was because his father “lived abroad”.

The stake in the company owned by Balshore was eventually sold by 2018 for about £27 million.

Experts said that if Zahawi benefitted from that transaction he should owe tax on it.

They point to a document from 2005 that suggests he benefitted from the trust when Balshore at least partially covered a loan.

Zahawi has not disclosed the size of the settlement – reported to be an estimated £4.8 million including a 30% penalty – or confirm whether he paid a fine.

Zahawi released a statement to “address some of the confusion about my finances”.

He said: “Following discussions with HMRC, they agreed that my father was entitled to founder shares in YouGov, though they disagreed about the exact allocation. They concluded that this was a ‘careless and not deliberate’ error.

“So that I could focus on my life as a public servant, I chose to settle the matter and pay what they said was due, which was the right thing to do.”

Share Button

‘Taxes Are Private Matters,’ Foreign Secretary Says Over Nadhim Zahawi ‘Error’

Posted on by
Reply

James Cleverly has insisted that tax affairs are “private matters” during a grilling over the finances of the Tory party chairman.

The foreign secretary stressed that Nadhim Zahawi made a “careless error” after it was revealed he paid a settlement to HM Revenue & Customs in relation to a shareholding in YouGov.

Zahawi is under pressure over allegations that he tried to avoid tax and has now had to pay it back as part of a multi-million pound settlement.

Cleverly said he did not know the size of the tax settlement with HMRC or whether Zahawi paid a penalty.

“I don’t know more than is in his statement,” Cleverly said.

Pressed on whether Zahawi should reveal more information, Cleverly said: “People’s taxes are private matters. I know that as politicians we, quite rightly, are expected to have a higher level of disclosure than perhaps other people might do.

“Nadhim has issued a statement where he has admitted that he made a careless error, that this is now resolved.”

Cleverly also swerved questions over whether Zahawi negotiated his tax settlement while he was chancellor, or what Rishi Sunak knew when he appointed him party chairman.

“I’m not an investigator,” he added when it was put to him that he was there to speak on behalf of the government.

Asked whether Zahawi will survive in his role until Wednesday, Cleverly said: “What else am I going to say other than yes, because he’s a very, very effective minister.”

Foreign Secretary James Cleverly faced a grilling
Foreign Secretary James Cleverly faced a grilling

Zahawi, who attends Sunak’s Cabinet, released a statement to “address some of the confusion about my finances”.

However, the statement raised further questions, including whether Zahawi negotiated the settlement when he was chancellor and in charge of the country’s taxation.

Claims started emerging when Zahawi was made chancellor by Boris Johnson last summer, with reports suggesting Cabinet Office officials had alerted the then-prime minister to the HMRC dispute.

Zahawi did not disclose the size of the settlement – reported to be an estimated £4.8 million including a 30% penalty – or confirm whether he paid a fine.

Tax lawyer Dan Neidle, who has been working to expose the minister’s tax affairs, estimated that he owed £3.7 million.

In an unusual move, Zahawi did not take founder shares when he set up YouGov, saying in his statement that his father took shares “in exchange for some capital and his invaluable guidance”.

He continued: “Twenty one years later, when I was being appointed chancellor of the Exchequer, questions were being raised about my tax affairs. I discussed this with the Cabinet Office at the time.

“Following discussions with HMRC, they agreed that my father was entitled to founder shares in YouGov, though they disagreed about the exact allocation. They concluded that this was a ‘careless and not deliberate’ error.

“So that I could focus on my life as a public servant, I chose to settle the matter and pay what they said was due, which was the right thing to do.”

He added that the matter was resolved and that all his tax affairs were “up to date” when he was appointed Tory party chairman by Sunak in October.

But the prime minister is facing questions over what he knew about the matter and when, as well as calls to sack Zahawi.

Sunak’s promise of a premiership of “integrity” was already thrown into disarray this week after he was fined by police for not wearing a seatbelt and criticised for the allocation of levelling-up funding.

Downing Street said it had nothing to add to Zahawi’s statement and confirmed that the prime minister had confidence in him as Tory chairman.

Opposition parties have demanded an independent probe as well as the publication of all of Zahawi’s correspondence with HMRC.

Labour party chairwoman Anneliese Dodds said Sunak needs to remove Zahawi as party chair, adding: “Zahawi still needs to explain when he became aware of the investigation, and if he was chancellor and in charge of our tax system at the time.

“He needs to explain why his legal representatives said his affairs were up to date in December last year only for him to settle a million-pound fine this month.”

Lib Dem deputy leader Daisy Cooper said: “Zahawi and his Conservative Cabinet colleagues are arrogantly trying to brush this under the carpet.

“There are facts that still need to be established so there must be an independent investigation to get to the bottom of this.”

Share Button

Rishi Sunak Caves In To Tory Rebels Over Online Harms Bill In Latest Climbdown

Posted on by
Reply

Rishi Sunak has performed yet another U-turn after he caved in to Tory rebels over the government’s online harms bill.

The prime minister has agreed that social media bosses could face jail over harmful content posted on their platforms after more than 50 Conservative backbenchers backed an amendment demanding the change.

The government had been concerned that the move would put tech firms off investing in the UK.

But Sunak was facing an embarrassing Commons defeat over the issue if he had not shifted his position.

Following talks with culture secretary Michelle Donelan, the rebels dropped the amendment, which will be brought back in the House of Lords “in a more workable format” by the government.

It is the third time the PM has been forced into a humiliating climbdown in the face of pressure from his own MPs.

He has already ditched plans to make it easier to build new homes and dropped his opposition to new onshore wind farms.

Ian Russell, the father of schoolgirl Molly Russell, who killed herself after viewing harmful material on social media, said the threat of imprisonment is “the only thing” that will make the bosses “put safety near the top of their agenda”.

“I think that’s a really important thing in terms of changing the corporate culture at these platforms,” he told BBC’s Newsnight.

Share Button

16 Year Olds Are Old Enough To Decide Gender Change, Education Secretary Says

Posted on by
Reply

The Education Secretary has suggested that 16 year olds are old enough to decide to change their gender.

Gillian Keegan knocked back suggestions that 16 was too young, saying: “I was making decisions for myself at 16.”

It comes after Rishi Sunak moved to block Scottish reforms of the gender recognition process passed by Holyrood.

The new law would make it easier for trans people to change gender by reducing the time the process takes and lowering the age at which it can happen to 16.

Asked if she would be content for children in schools at 16 to say whether they want to change their gender, Keegan told Sky News: “We have to be very sensitive to children. We are actually going to publish some guidance and consult because it is a very tricky area to get right.

“It has to be age-appropriate, but children have to be supported as well.”

Pressed on her personal view, the minister was asked if 16 was too young.

“No I don’t actually. “I was working at 16, I was paying tax at 16, I was making decisions for myself at 16,” she replied.

“But it’s not really about what I think, it’s how we make sure we get that right balance of supporting children, but also making sure that what they’re getting taught in schools is age-appropriate.”

Labour leader Keir Starmer said he has “concerns” over Scotland’s gender recognition law because he considers 16 to be too young to decide to change gender.

Yesterday, the UK government took the unprecedented step of blocking Scotland’s gender reforms from becoming law.

It is the first time Westminster has used the power since devolution came into being nearly 25 years ago.

Scottish secretary Alister Jack wrote to Scottish first minister Nicola Sturgeon to inform her that he was making a so-called “section 35 order” vetoing the bill which was passed at Holyrood before Christmas.

It followed advice from government lawyers that the bill would cut across the UK-wide Equality Act.

In a statement, Jack said: “Transgender people who are going through the process to change their legal sex deserve our respect, support and understanding. My decision today is about the legislation’s consequences for the operation of GB-wide equalities protections and other reserved matters.”

Responding to the news, Sturgeon accused the UK government of “a full-frontal attack” on the Scottish parliament.

Share Button

In Case You Missed It, Here’s Rishi Sunak Being Utterly Torn Apart By A Scottish Journalist

Posted on by
Reply

Rishi Sunak received a brutal grilling from a Scottish journalist last week, and the clip has now gone viral online.

On a visit to Scotland, the prime minister met with Scotland’s first minister Nicola Sturgeon as tensions over the country’s constitutional future (and it’s gender recognition reform bill) continue to bubble away in the background.

In November, the Supreme Court ruled that the Scottish government did not have the legal power to hold its own referendum on whether Scotland should leave the UK.

Sturgeon has since said that she would instead make the next general election a “de facto referendum” – so votes for her (or her party the SNP) would effectively be votes for independence.

During their tense interview on Friday morning, STV’s political editor Colin Mackay asked Sunak: ″Would you accept the result of that de facto referendum?”

″What I’m focused on is delivering for the people of Scotland,” Sunak began. “Today’s announcement –”

“That’s not what I’m asking you,” Mackay cut him off. “I’m asking you about the possibility of a de facto referendum at the next general election, which the first minister proposed.”

Sunak just said that he and the first minister of Scotland did not talk about the next general election during their meeting on Thursday night.

Mackay asked again: “You’re completely ignoring my question, which is about the possibility of the next general election being a de facto referendum.

″Would you accept the outcome of that?”

“What I’m focused on,” Sunak said, but was cut off once again.

Mackay replied: “That’s not what I’m asking you, I’m asking you to focus on this because a lot of people in Scotland are very interested in this, would you accept the outcome of a de facto referendum?”

The PM said: ″Do you know what, I’ve been out all of yesterday evening, I’ve been out all of today, and what people are talking to me about is what we are doing to actually make their lives better.”

″So you’re just not going to talk about what they’re talking about?” Mackay pushed. “You’re just going to ignore my question about Scotland’s constitutional future, is that what you’re doing? You clearly are.”

“When it comes to a general election people will make up their own minds on what they want to vote on,” Sunak said. ″It’s not really for me to talk about that.”

“Well it is because that’s what I’m asking you about. ”

The STV journalist then asked Sunak if he was “ignoring democracy”.

“No, absolutely not, what we are doing is delivering for people here in Scotland,” the prime minister replied.

“Obviously the Scottish government tried to put forward something which the Supreme Court said was not appropriate, I respect the decision of the Supreme Court.

“In the here and now, I think what the people in Scotland want is for us to make a difference to their lives.”

McKay added: “So, they have no democratic right to express their own opinion in the Scottish future.”

Sunak repeated that he respects the view of the Supreme Court, adding that the two free ports being unveiled in Scotland will bring “jobs, investment and opportunity” to the regions.

Writing for STV after their meeting, Mackay said Sunak dodged some of his questions “as skilfully as some of his predecessors, and much better than he did before he was prime minister”.

Mackay also noted: “What was notable was he was much more open to media access than some of his predecessors, and that really is progress.”

Share Button

Battle Of Britain: Rishi Sunak Set To Block Scotland’s Gender Recognition Law

Posted on by
Reply

Rishi Sunak returns to London this morning after spending two days in Scotland.

His visit included a private dinner with Nicola Sturgeon on Thursday evening, during which the pair discussed, among other things, the many issues that divide them.

Nevertheless, the prime minister said he wanted the pair to “strengthen our working relationship and continue discussing our shared challenges and our joint efforts to deliver for people in Scotland”.

But that laudable intention will be blown to pieces next Wednesday if, as HuffPost UK understands, Sunak’s government takes the unprecedented step of blocking a bill passed at Holyrood from becoming law.

The legislation in question is the Gender Recognition Reform Act, which was passed by the Scottish Parliament before Christmas after a fierce debate which highlighted splits on the issue in the main parties.

In simple terms, the new law would make it easier for trans people to change gender by reducing the time the process takes and lowering the age at which it can happen.

The Westminster government has no intention of bringing in a similar bill, giving rise to potential legal problems over how the Scotland-only law would affect the application of the Equalities Act across the UK.

Ministers in London can block Holyrood legislation in such circumstances by triggering section 35 of the Scotland Act — which brought the Scottish Parliament into being in 1999.

That would prevent the presiding officer of the Scottish Parliament from sending the bill to the King for royal assent.

Whitehall sources say Alister Jack, the secretary of state for Scotland, will announce on Wednesday that the UK government will block the bill.

Coming at a time when the SNP are already accusing Westminster of “denying democracy” by not allowing another referendum on independence, this would be the political equivalent of throwing a match into a box of fireworks.

Sunak held "constructive" talks with Nicola Sturgeon in Scotland on Thursday.
Sunak held “constructive” talks with Nicola Sturgeon in Scotland on Thursday.

10 Downing Street

Asked about the issue while in Scotland, Sunak was giving little away.

“Obviously this is a very sensitive area and I know there were very robust debates and exchanges on it as the bill was passing in in Scotland,” he said.

“What I’m concerned about is the impact of the bill across the United Kingdom.

“There may be impacts across the UK that we need to be aware of and understand the impact of them, and that’s what we’re doing, and once the government has received final advice it will set out next steps.”

Stephen Flynn, the SNP leader at Westminster, gave a foretaste of what his party’s reaction will be if the UK government does indeed veto the Gender Reform Recognition Act.

He said: “This goes to the heart of Scotland’s democracy because Scotland’s democratically elected parliament has approved legislation in relation to gender recognition and the UK government is potentially going to try and undermine that. That’s simply not on.”

It’s not a straightforward issue for the SNP, however.

The debate in the Scottish Parliament saw the biggest rebellion against the party leadership since it came to power in 2007, with some SNP MSPs voting against what they see as an attack on women’s sex-based rights.

The SNP’s Westminster group is also split, with Edinburgh South West MP Joanna Cherry one of the most vocal opponents of the Scottish government’s position.

Will those SNP rebels back the UK government blocking a law they hate, or will they row in behind Sturgeon over what their party claims is an attack on devolution itself?

Joanna Cherry speaking at the For Women Scotland and the Scottish Feminist Network demonstration outside the Scottish Parliament ahead of last month's vote on the Gender Recognition Reform Act.
Joanna Cherry speaking at the For Women Scotland and the Scottish Feminist Network demonstration outside the Scottish Parliament ahead of last month’s vote on the Gender Recognition Reform Act.

Lesley Martin via PA Wire/PA Images

One constitutional expert told HuffPost UK that the row will ultimately end up in the Supreme Court, which ruled in November that the Scottish Parliament does not have the power to organise its own independence referendum.

“Using such a radical mechanism as a veto power does rather play into the SNP narrative that Westminster is denying democracy, which seems to me to be politically risky,” they said.

“As we approach the 25th anniversary of devolution, it is a big moment.”

For all his warm words about co-operation with the Scottish government, it seems all-but certain that Sunak is just days away from a constitutional crisis which could end up defining the very future of the United Kingdom.

Share Button

Rishi Sunak Facing Major Tory Rebellion Over Online Safety Bill

Posted on by
Reply

Rishi Sunak is facing a fresh Tory backbench rebellion over a law aimed at protecting children when they use the internet.

Nearly 40 Conservative MPs – including former cabinet ministers – have signed an amendment to the online safety bill which could see social media bosses jailed if their platforms publish harmful content.

The prime minister has already been forced to perform embarrassing U-turns over housebuilding targets and new onshore wind farms in the face of rebellions by Tory MPs.

Among the 36 Conservatives backing the rebel amendment are former party leader Iain Duncan Smith and Andrea Leadsom.

With Labour also backing it, Sunak is heading for his first parliamentary defeat as PM unless the government changes its position.

Culture secretary Michelle Donelan hinted that the government was preparing for a climbdown.

Speaking to the BBC’s Newscast podcast, she said: “I’m not ruling out any of those amendments because I’ve been working through them and they’ve been coming in today as well, looking at, you know, what colleagues are putting forward.

“I’m somebody that always takes a sensible approach to these things. If people have good ideas, just because I didn’t think of them, doesn’t mean that we’re not going to do them.”

Ian Russell and Ruth Moss, parents of children who killed themselves after viewing harmful content online, are among those campaigning for the government to accept the proposed change.

The prime minister’s official spokesperson said: “Our aim is to hold to account social media platforms for harmful content while also ensuring the UK remains a great place to invest and grow a tech business.

“We are confident we can achieve both of these things.

“We will carefully consider all the proposed amendments to the online safety bill and set out its position when report stage continues.”

Share Button

‘Life And Limb Must Come First’ – Grant Shapps Defends Controversial Anti-Strikes Bill

Posted on by
Reply

Grant Shapps today said “life and limb must come first” as he defended a controversial new anti-strike bill.

The Business Secretary was promoting the new law aimed at ensuring a minimum level of service in crucial sectors during industrial action.

Shapps said the government want to end “forever strikes” and argued that the government’s legislation would bring the UK “into line” with other European countries.

The move has sparked threats of legal challenges, while Labour has said it would likely repeal the legislation.

The bill will be introduced to parliament on Tuesday afternoon, a day after crisis talks between ministers and unions failed to resolve industrial disputes involving nurses, teachers and rail workers.

Shapps told GB News: “I’ll be introducing a minimum safety level bill, which will sort of say, ‘look, we will never withdraw the right to strike from people but when there are strikes on life and limb must come first, and there has to be a minimum safety standard put in place for that’.”

He added: “We don’t really ever want to have to use that legislation.

“In those most recent strikes, the Royal College of Nursing, the nurses, agreed a set national level of support.

“Unfortunately, we couldn’t get there with ambulances across the country, meaning there was a bit of a postcode lottery as to whether an ambulance would turn up in the case of something serious, like a heart attack or a stroke.

“We can’t have that, so common sense tells us that we need to have minimum safety levels.”

Health Secretary Steve Barclay is considering backdating next year’s NHS staff pay increase to prevent further strikes.

He suggested that improvements in efficiency could “unlock additional funding”, leading to an increased offer for the 2023/24 pay settlement in the spring.

Sara Gorton, from Unison, said there had been an “acknowledgement” that avoiding strikes would “involve a reach-back” into the current pay year.

It raises the prospect that the pay deal for 2023/24, which is due to be agreed in time for April, could be backdated and applied to the final quarter of the 2022/23 financial year.

Ministers have previously refused to discuss wages for nurses and other public-sector workers, insisting those were matters for the independent pay review bodies.

Prime minister Rishi Sunak will chair his first Cabinet meeting of in 2023 on Tuesday morning.

Share Button