Sunak orders investigation into Zahawi tax row

1. Conservative Party Chairman Nadhim Zahawi is facing calls to resign following a row over his tax affairs
2. Prime Minister Rishi Sunak has asked his independent ethics adviser to investigate, saying there are "questions that need answering"
3. Labour leader Sir Keir Starmer says Zahawi's position is "untenable" and he should be sacked today
4. The BBC has confirmed that Zahawi paid a penalty to HMRC while he was chancellor, over unpaid tax, with the total settlement understood to be worth around £5m
5. The inquiry will look into whether Zahawi breached the ministerial code - he has welcomed it and says he looks forward to "explaining the facts"
6. Sunak is also facing a separate controversy over the appointment of BBC chairman Richard Sharp and his links with then PM Boris Johnson
7. The process of hiring Sharp is to be reviewed by the Commissioner of Public Appointments following claims he helped Johnson secure a loan

How the PM announced the investigation

On a visit to a hospital in Northamptonshire earlier, Rishi Sunak told reporters: "Integrity and accountability is really important to me and clearly in this case there are questions that need answering.

He continued:

That's why I've asked our independent adviser to get to the bottom of everything, to investigate the matter fully and establish all the facts and provide advice to me on Nadhim Zahawi's compliance with the ministerial code."

He added that Zahawi would remain Tory Party chairman during the investigation and had agreed to "fully cooperate".

Reuters

What's this all about?

Over the weekend the BBC confirmed Nadhim Zahawi paid a penalty to HMRC while he served as the UK’s chancellor last year - as part of a settlement relating to unpaid tax.

The BBC understands the total settlement to be worth around £5m.

Zahawi described the error over unpaid tax as “careless and not deliberate”.

But, announcing the ethics probe, Prime Minister Rishi Sunak said: “Clearly in this case there are questions that need answering”.

PM orders investigation in Zahawi's tax affairs

Welcome to our live coverage as pressure builds on Conservative Party chairman Nadhim Zahawi.

The senior Tory and former chancellor, education secretary and vaccines miniser faces ongoing questions over his tax affairs.

PM Rishi Sunak has now ordered an investigation led by his independent ethics adviser.

Stay with us for reaction and analysis - and updates as we get them.