Some reaction from the Scottish National Party's Cabinet Office spokeswoman Kirsty Blackman on Zahawi's sacking:

Chris Mason
Political editor

The prime minister is now looking for another party chairman.

Before Christmas he lost a minister, Gavin Williamson, amid accusations of bullying, which Sir Gavin denied.

And there is still an investigation going on into the conduct of the Deputy Prime Minister Dominic Raab, who also denies allegations of bullying.

Downing Street argue the prime minister demonstrates integrity by following due process, ensuring allegations are properly investigated, rather than acting impulsively.

But there are those within government who believe Rishi Sunak was “too nice”, as one put it to me, over Zahawi and should have sacked him a week ago.

And then there is the bigger question about Sunak’s judgement – should he have appointed any of these ministers in the first place?

Chris Mason
Political editor

This is Sir Laurie Magnus’s debut as the prime minister’s ethics adviser.

And he is blunt, pithy, direct.

And so is the prime minister on reading Sir Laurie’s conclusions.

And so Nadhim Zahawi is a goner.

Zahawi’s public response, external makes no reference to his breach of the ministerial code, but instead has a pop at journalists.

Privately he’s been deeply angry at the tone of some of the media coverage, with some of his allies feeling it had undertones of racism.

His critics say his decision to threaten some journalists with libel writs, when they were exposing information about him, was outrageous.

Image source, Historic England

Rishi Sunak appointed veteran banker Sir Laurie Magnus in December 2022 as his new adviser on ministerial behaviour.

The findings of an investigation by Sir Laurie led to Sunak sacking Zahawi.

So who is Sir Laurie?

• Worked in financial services for 40 years, and is listed as a senior adviser at investment banking group Evercore
• Former deputy chairman of the National Trust, he was appointed chairman of Historic England in 2013, then known as English Heritage
• Sat on the board of the government's Culture Recovery Fund, set up to help cultural bodies during the Covid pandemic
• Educated at Eton College and Oxford University, his title of 'Sir' is from the baronetcy he inherited from his uncle
• Awarded a CBE in the late Queen's 2022 New Year's Honours list, for services to heritage

As part of his investigation the PM's independent ethics adviser Sir Laurie Magnus examined the following statement Zahawi made in response to media speculation about his tax affairs.

Sir Laurie's report says the ministerial code includes "a general duty to be accurate in statements to ensure a false impression is not given or maintained".

Mr Zahawi did not correct the record until 21 January 2023, with another public statement saying he had reached a settlement with HMRC following an investigation.

Laura Kuenssberg
Presenter, Sunday with Laura Kuenssberg

By late Friday it was clear at the top of government that Nadhim Zahawi was very likely to be heading for the exit.

This morning, just before we came on air, the news that Rishi Sunak had sacked him broke.

Sunak had asked his ethics adviser, Sir Laurie Magnus, to investigate what had gone on.

But by the time the investigation started it was already clear that he had paid a penalty to the taxman while chancellor, after many weeks of trying to avoid questions on the matter.

That was never likely to hold, and as soon as the official verdict from the ethics adviser arrived, Sunak showed Zahawi the door.

He is a popular figure in his party, and is often credited with much of the success of the UK's Covid vaccine programme.

But the mess over his tax affairs has brought an end to his career in government. Questions about precisely what and when Rishi Sunak knew will persist too.

Caroline Lucas, co-leader of the Green Party, has tweeted her reaction to the sacking of Tory chairman Nadhim Zahawi.

She says that Rishi Sunak was "pressured into" sacking Zahawi after trying to keep him in government.

Image source, UK Government

In case you're just joining us, here's a round-up of this morning's key events.

Around 09:00 GMT, we reported that Nadhim Zahawi was sacked as Conservative Party chairman.

• Prime Minister Rishi Sunak wrote to Zahawi telling him he had committed a serious breach of the ministerial code and that he was being removed from government
• A report by the PM's independent ethics adviser Sir Laurie Magnus found Zahawi had not declared that his tax affairs were being investigated and that he had paid a penalty
• Sir Laurie also found there had been a "delay in correcting an untrue public statement", after Zahawi had said he was not aware that HMRC was looking into him
• Levelling-up Secretary Michael Gove told Sunday With Laura Kuenssberg that neither Sunak nor his predecessor Liz Truss knew there were issues with Zahawi's tax affairs
• Labour's shadow education secretary Bridget Phillipson told the programme Sunak should have sacked Zahawi a long time ago
• Zahawi tweeted a copy of a letter he sent the PM in reply to his sacking. It said he would continue to support Sunak from the back benches.

Zahawi should have known he was being investigated, inquiry findspublished at 10:18 Greenwich Mean Time 29 January 2023

10:18 GMT 29 January 2023

Nick Eardley
Chief political correspondent

The report into Zahawi's tax affairs says he attended a meeting with HMRC in June 2021.

He's told the PM's ethics adviser Sir Laurie Magnus he believed he was answering queries.

But Sir Laurie concludes Mr Zahawi should have known this amounted to an investigation.

That means, Sir Laurie says, he should have declared the situation at the time.

Not doing so meant he failed to uphold the rules ministers have to follow.

Sir Laurie also criticises Mr Zahawi for not declaring that he paid a penalty - when he was appointed to Liz Truss and then Rishi Sunak's cabinet.

This all amounts to what he calls a serious failure to meet the standards set out the ministerial code.

In his letter to PM Rishi Sunak, Zahawi did not directly address the findings of an investigation into his tax affairs - but he did attack some of the media coverage of the row.

He told Sunak he was concerned "about the conduct from some of the fourth estate in recent weeks".

He said some of the headlines over his position in government had made it difficult for his family, and he apologised for the toll it had taken on them.

Levelling-up Secretary Michael Gove was asked by the BBC's Laura Kuenssberg why the PM felt that it was appropriate for Nadhim Zahawi to be given the job of party chairman in the first place.

Watch his reaction in the clip below.

Nadhim Zahawi has tweeted a picture of the letter he sent to PM Rishi Sunak after his sacking.

In it, he reflects on his achievements in government and questions the way some parts of the media have covered his tax affairs.

The PM can rely on Zahawi's "full support" from the back benches, he says.

Nick Eardley
Chief political correspondent

This report is highly critical of Nadhim Zahawi's failure to declare the HMRC investigation earlier.

He didn't declare it when appointed education secretary.

He didn't declare it when he was first made chancellor (although he did later that month).

After settling a tax bill, which included a penalty, he didn't declare that to Liz Truss or Rishi Sunak when they made him a minister.

That's why it concludes there was a serious breach of the rulebook ministers have to follow.

Over on Sunday with Laura Kuenssberg there's reaction from Labour's shadow education secretary Bridget Phillipson to the sacking of former Tory party chairman Nadhim Zahawi.

She says Prime Minister Rishi Sunak should have done it before now.

"Nadhim Zahawi failed to pay the taxes he owed in this country and tried to silence those who spoke out about it," she says.

More now from Sir Laurie Magnus, the prime minister's ethics adviser, whose findings led to Rishi Sunak dismissing Tory party chairman Nadhim Zahawi after weeks of revelations about his tax affairs.

Sir Laurie's findings continue:

• When Zahawi became chancellor on 5 July 2022, he completed a declaration of interests form which contained no reference to an HMRC investigation into his taxes
• He only updated the form after getting a letter from HMRC on 15 July 2022. He acknowledged that his tax affairs were under investigation, but only said he was clarifying queries
• Sir Laurie found Zahawi had failed to meet the requirement of the Ministerial Code to declare any conflict of interests

Former Tory party chairman Nadhim Zahawi has been sacked following an investigation into his tax affairs by the prime minister's independent ethics adviser Sir Laurie Magnus.

Here's what he found:

• Zahawi said when HMRC started asking questions he was under the impression he was "merely being asked certain queries by HMRC concerning his tax affairs"
• But Sir Laurie found Zahawi "should have understood at the outset that they were under investigation by HMRC and that this was a serious matter"
• He says Zahawi should have updated his declaration of interests form to reflect the investigation

Before he was sacked, Zahawi had issued a statement on 21 January which attempted to clarify his tax affairs, including a settlement he paid to HMRC last year.

This settlement was later confirmed by the BBC to have included a penalty.

The statement read:

Cabinet minister Michael Gove has been on Sunday with Laura Kuenssberg this morning.

He said the prime minister's ethics adviser Sir Laurie Magnus was asked to "look rapidly at the situation" and delivered his report this morning.

"It is always important to make sure all the facts are investigated fully and properly," said Mr Gove.

"Nadhim is a friend of mine, so I can’t take any joy in the fact that these events have played out today in the way that they have."

On the situation last summer at the time when Nadim Zahawi was paying his fine, Mr Gove said neither Liz Truss nor Rishi Sunak would have had any awareness of the situation.

"My understanding is that there was no information that was brought to the attention of the prime minister… neither Rishi Sunak or Liz Truss," he said.

Asked how Mr Zahawi would feel about having threatened defamation action, Mr Gove said: "I am sure Nadim will be reflecting today on this whole question."

Gove said the prime minister's "way of operating" is driven by "a sense of duty and profound moral seriousness".

Nick Eardley
Chief political correspondent

Nadhim Zahawi's tax affairs have been a headache for the government for the past ten days.

Rishi Sunak has argued that due process is important. But he's faced accusations he was weak for not acting earlier to get rid of Zahawi.

The PM got the report from his ethics adivser early this morning. He spoke to Zahawi to tell him he was being sacked, then it was confirmed publicly.

The report from Sir Laurie Magnus left little room for any other conclusion than Zahawi's departure.

He said Zahawi showed insufficient regard for the principles ministers are expected to follow.

Prime Minister Rishi Sunak has sacked Tory party chairman Nadhim Zahawi, who was under pressure over his tax affairs.

Read the full text of the letter below.

Dear Nadhim,

When I became Prime Minister last year, I pledged that the Government I lead would have integrity, professionalism and accountability at every level.

That is why, following new information which came to light in recent days regarding your personal financial arrangements and declarations, I asked Sir Laurie Magnus, the Independent Adviser on Ministers' Interests, to fully investigate this matter. You agreed and undertook to cooperate fully with the inquiry.

Following the completion of the Independent Adviser's investigation - the findings of which he has shared with us both - it is clear that there has been a serious breach of the Ministerial Code. As a result, I have informed you of my decision to remove you from your position in His Majesty's Government.

As you leave, you should be extremely proud of your wide-ranging achievements in government over the last five years. In particular, your successful oversight of the COVID-19 vaccine procurement and deployment programme which ensured the United Kingdom was at the forefront of the global response to the coronavirus pandemic. Your role was critical to ensuring our country came through this crisis and saved many lives. And as the Conservative Party Chairman, you have undertaken significant restructuring to Conservative Campaign Headquarters and readied us for important work in the coming months.

It is also with pride that I, and previous prime ministers, have been able to draw upon the services of a Kurdish-born Iraqi refugee at the highest levels of the UK government. That is something which people up and down this country have rightly valued.

I know I will be able to count on your support from the backbenches as you continue to passionately and determinedly serve your constituents of Stratford-on-Avon and represent the many issues and campaigns you are dedicated to. Thank you for your service to this and previous governments.

Yours sincerely,

Rishi Sunak