Troubles ahead for Rishi Sunak? Here are five pitfalls he’ll be dreading

He may yearn for a period of calm, but the prime minister faces some daunting challenges in the stormy months ahead

Having taken on the party leadership after months of economic turmoil, Rishi Sunak always faced a tough task in turning around his party’s fortunes. With the future of cabinet ministers already in doubt and Boris Johnson courting MPs, a series of new hurdles in the months ahead will make life even harder for the prime minister.

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Zahawi should quit as party chair until tax inquiry ends, top Tory peer implies

Lord Young suggests ministers should feel able to step aside for the duration of any investigation

Nadhim Zahawi should step away from his Conservative party role while the inquiry into his tax affairs continues, a senior Tory peer and former Commons standards chair has appeared to suggest.

Lord Young, who served in several Conservative administrations from Margaret Thatcher’s to Theresa May’s, suggested that ministers under pressure should feel able to step aside for the duration of any investigation.

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Jeremy Hunt ‘not even trying’ to settle NHS pay dispute, says Unison – UK politics live

Unison general secretary says chancellor ‘completely ignoring vital public services’ after he gives speech on plans

Hunt says Brexit is an opportunity to work with regulators to create an economic environment which is “more innovation-friendly, and more growth-focused”.

He says he wants to create an “enterprise culture built on low taxes, reward for risk, access to capital and smarter regulation”.

Nor will we fix our productivity puzzle unless everyone who can participate does. So to those who retired early after the pandemic, or haven’t found the right role after furlough, I say: Britain needs you.

High taxes directly affect the incentives which determine decisions by entrepreneurs, investors or larger companies, about whether to pursue their ambitions in Britain

Sound money must come first but our ambition must be nothing less than to have the most competitive tax regime of any major country.

In case anyone is in any doubt about who will actually deliver that restraint to make a low tax economy possible, I gently point out that in the three weeks since Labour promised no big government chequebook they have made £45bn of unfunded spending commitments.

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Rod Stewart calls Sky News offering to pay for NHS hospital scans

Singer said the situation in UK was ‘so bad’ and it was time to ‘change the bloody government’

Rod Stewart called a phone-in segment on Sky News to offer to pay for people to have hospital scans, amid the rising number of people on NHS waiting lists.

The 78-year-old rock star, who has previously backed the Conservatives, said he had never seen the situation in the UK “so bad” and called for Labour to be given a chance to run the country, adding: “Change the bloody government.”

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Focus on NHS and inflation to keep poll hopes alive, Sunak tells ministers

Cabinet told about bleak outlook for governing party at next general elections at Chequers awayday

The Conservatives must “relentlessly focus” on inflation and the NHS if they are to have a chance at the next election, cabinet ministers have been told.

Rishi Sunak gathered ministers at his country retreat Chequers on Thursday for a midday political cabinet – where a number of ministers gave presentations on the government’s key priorities and took a fresh look at the strategy for the next election.

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Sunak and cabinet head to Chequers as pressure grows on PM to sack Zahawi – UK politics live

Latest updates: Lib Dems criticise Tory ‘hideaway day’ as ethics probe into Tory party chair’s tax affairs continues

The matter of who knew what about Nadhim Zahawi’s dealings with the taxman and when in Whitehall and No 10 is the subject of intense scrutiny and could yet define Rishi Sunak’s premiership.

Sunak has sought to put down suggestions he was aware that Zahawi paid a penalty to HMRC prior to his appointment as the Conservative party’s chair on 25 October 2022.

The usual appointments process was followed, no issues were raised with me when he was appointed to his current role and, since I commented on this matter last week, more information has come forward. That is why I have asked the independent adviser to look into the matter.

I can’t be drawn on an arrangement of which I don’t know all the details. But the good news is that we will, in around it sounds like ten days’ time or thereabouts, hear from the ethics adviser, who will report to the prime minister, the prime minister will then have the facts and be able to make exactly those judgments.

While Rishi Sunak and his scandal-hit ministers hold a ‘hideaway’ day at Chequers, the rest of the country is suffering from this endless Conservative chaos. The NHS is in crisis and people are struggling to pay their rent or mortgage, but Conservative ministers are too busy fighting to save their own careers. Sunak’s promise to govern with integrity now lies in tatters. He can’t even tackle the multiple crises facing his Cabinet, let alone the huge challenges facing the country.

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UK climate minister received donations from fuel and aviation companies

Exclusive: Graham Stuart received £12,000 towards campaign from fuel distributor and aviation consultant

The UK climate minister – who recently stated not all fossil fuels were the “spawn of the devil” – received campaign donations from one of the largest fuel distributors in the UK as well as an aviation consultant and recruiter, it has emerged.

Graham Stuart, Conservative MP for Beverley and Holderness, was appointed climate minister by Rishi Sunak in September. He has responsibility for net zero strategy and low carbon generation, and is the Commons lead for clean heat.

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At least 24 civil servants involved in complaints against Dominic Raab, say sources

Exclusive: Insiders believe depth of inquiry and severity of some claims means deputy PM will struggle to keep job

Dominic Raab is facing a much broader bullying investigation than originally anticipated with at least 24 civil servants involved in formal complaints against him, the Guardian understands.

Government insiders believe the depth of the inquiry and severity of some of the claims means the deputy prime minister will struggle to survive in post, and throws further doubt on Rishi Sunak’s judgment for having him in such a senior position.

In the UK and Ireland, Samaritans can be contacted on 116 123, or by emailing jo@samaritans.org or jo@samaritans.ie. In the US, the National Suicide Prevention Lifeline is 1-800-273-8255. In Australia, the crisis support service Lifeline is 13 11 14. Other international helplines can be found at befrienders.org.

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Rishi Sunak has never paid a penalty to HMRC, No 10 says, amid growing pressure over Nadhim Zahawi – as it happened

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Rishi Sunak has welcomed Germany’s decision to send Leopard 2 tanks to Ukraine.

There is more coverage of the German decision on our Ukraine live blog.

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‘He should resign’: Stratford-on-Avon constituents on Zahawi tax scandal

Residents of Warwickshire town united in condemnation of local Tory MP’s tax affairs

The market town of Stratford-upon-Avon in Warwickshire has been a Conservative stronghold for well over a hundred years, with its current MP, Nadhim Zahawi, securing a majority of about 20,000 in three successive general elections.

But it was difficult to find support for the beleaguered MP on the streets of the town on Wednesday, and most local people said they thought he should resign over the scandal around his tax affairs.

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‘He doesn’t care’: Rishi Sunak is failing nurses and NHS, say voters in Stoke

In a focus group, residents of Stoke-on-Trent describe the health service as an ‘absolute mess’ and say the PM has just disappeared

Rishi Sunak should pour money and staff into the “crippled” NHS, and reward striking nurses with better pay, Conservative 2019 voters from a “red wall” constituency have said.

Stoke-on-Trent residents in a focus group organised by More in Common for the Guardian described the health service as “struggling”, being in an “absolute mess” and “on its backside”, with all members able to describe just how difficult it is to get an appointment. On top of this, the locals expressed a huge amount of sympathy for striking health workers, who are “worked to the bone”.

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No 10 declines to say Sunak confident Zahawi has always told him truth about his tax affairs – UK politics live

Downing Street spokesperson also says inquiry into former chancellor’s affairs to be ‘conducted swiftly’

There are two urgent questions in the Commons later. At 12.30pm Caroline Lucas (Green) is asking one about the child asylum seekers who have gone missing from hotel accommodation provided by the Home Office, and that will be followed by Ben Bradshaw (Lab) asking one about the Church of England’s stance on equal marriage.

After those are over Damian Hinds, the justice minister, will deliver a statement about the probation inspectorate.

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UK government ‘let lawyers bypass sanctions’ to help Putin ally sue journalist

Documents seen by Open Democracy show UK firm got approval to engage with Wagner group founder Yevgeny Prigozhin

British lawyers were given government dispensation to bypass sanctions in order to help Yevgeny Prigozhin, the controversial Russian businessman and Wagner group founder, sue a journalist, according to documents made available to the website Open Democracy.

The documents concern a libel case brought by Prigozhin against Eliot Higgins, the founder of the investigative group Bellingcat, in 2021. The revelations will raise further questions about the abuse of UK libel law by the super-rich.

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‘Wheeler-dealer’ Boris Johnson and his tricky relationship with money

That former PM secretly secured a loan of up to £800k no surprise as financial reliance on others stretches back many years

Boris Johnson is deeply protective of his personal life – but one thing almost universally acknowledged by those who know him is that he has a tricky relationship with money.

It came as little surprise to them, therefore, that he was alleged to have secretly secured an up to £800,000 loan guarantee while prime minister.

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Minister unable to say whether Zahawi was telling truth when he first said taxes were fully paid – as it happened

Labour MP asks whether Zahawi statement in the summer was untrue, with Cabinet Office minister saying he does not know the answer

Nadhim Zahawi, the Conservative party chair, has welcomed the decision by Rishi Sunak to ask the No 10 ethics adviser to investigate his case. “I am confident I acted properly throughout,” Zahawi said.

Zahawi seems to be using a narrow definition of “properly”. In the statement he issued yesterday, he accepted that his original decision not to pay the tax that HM Revenue and Customs subsequently concluded he should have paid was down to a careless error. 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.

Integrity and accountability is really important to me and clearly in this case there are questions that need answering …

That’s why the independent adviser has been asked to fully investigate this matter and provide advice to me on Nadhim Zahawi’s compliance with the ministerial code, and on the basis of that we’ll decide on the appropriate next steps.

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Nadhim Zahawi’s future threatened as Labour steps up pressure over tax affairs

Angela Rayner says Rishi Sunak should come clean about any concerns raised with No 10 about ex-chancellor and HMRC penalty

Nadhim Zahawi’s political future appeared under increasing threat on Sunday night, after Labour pushed hard for answers about his tax issues and government colleagues offered little support for his plight.

After a weekend dominated by questions over the Conservative party chair’s tax position, Labour signalled its intention to pin the controversy on to Rishi Sunak, demanding the prime minister explain if he knew about the issue when he appointed Zahawi to his cabinet.

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Labour urges inquiry into claim BBC chairman ‘helped Boris Johnson secure loan guarantee’

Reports Richard Sharp helped ex-PM arrange guarantee on £800,000 loan before he was recommended for job

Labour is calling for an investigation after claims that the BBC chair helped Boris Johnson arrange a guarantee on a loan of up to £800,000 weeks before he was recommended for the job by the then prime minister.

The party has written to the parliamentary commissioner for standards, Daniel Greenberg, after a report in the Sunday Times that Tory donor Richard Sharp was involved in talks about financing Johnson when he found himself in financial difficulty in late 2020.

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Nadhim Zahawi claims error with his taxes ‘careless not deliberate’

Comments follow reports that Tory party chairman paid HMRC a penalty as part of a multimillion-pound tax settlement

Tory party chair Nadhim Zahawi has released a statement to “address some of the confusion about my finances” after reports that he paid a penalty as part of a multimillion-pound tax settlement.

He said: “As a senior politician I know that scrutiny and propriety are important parts of public life. Twenty-two years ago I co-founded a company called YouGov. I’m incredibly proud of what we achieved. It is an amazing business that has employed thousands of people and provides a world-beating service.

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MI5 refused to investigate ‘Russian spy’s’ links to Tories, says whistleblower

Party member lodges a complaint about the security services ignoring attempt of Russian infiltration into the Conservatives

MI5 repeatedly refused to investigate evidence that an alleged Russian spy was attempting to cultivate influence with senior Conservative politicians and channel illegal Russian funds into the party, a Tory member has alleged in a new complaint lodged with the investigatory powers tribunal (IPT).

Sergei Cristo, a Conservative party activist and a former journalist with the BBC World Service, has lodged a complaint with the investigatory powers tribunal, filing the case after corresponding with the chair of parliament’s intelligence and security committee, Conservative MP Julian Lewis, who recommended he take the information to the authorities.

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Nadhim Zahawi’s position as Tory chair ‘untenable’, says Labour

Angela Rayner calls for explanation after it emerged former chancellor paid 30% penalty to settle tax bill

Nadhim Zahawi’s position as Conservative party chair is “untenable” after reports he paid a penalty as part of a seven-figure tax settlement, Labour has said.

The former chancellor, who attends cabinet meetings, has faced pressure in parliament and the media after it emerged he agreed to pay millions to HMRC in December after a settlement with the tax agency.

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