London Daily

Focus on the big picture.
Thursday, Oct 22, 2026

Zahawi and Raab inquiries leave Sunak with his reputation on the line

Zahawi and Raab inquiries leave Sunak with his reputation on the line

Rishi Sunak is stuck in a rut. Government announcements are being overshadowed by continued questions over Nadhim Zahawi’s run-in with HMRC and there is mounting incredulity that the Conservative party chair has not already been dismissed.
The move to launch an inquiry into Zahawi’s tax affairs – after it emerged he paid a penalty to HMRC over previously unpaid tax while he was chancellor – was designed to relieve some of the pressure. But No 10 knows that the prime minister, rather than the ethics adviser he has asked to establish the facts, will have to make the final call. For, regardless of the “due process” that Sunak has stressed he wants to follow, the decision about whether to dismiss Zahawi will be a political one.

Sunak’s own reputation is on the line. His vow to restore integrity and accountability to the government was mocked at prime minister’s questions and many Tory MPs question why he is burning through political capital when they feel fatalistic about the outcome.

“There will inevitably be terminal action,” a minister said confidently.

As well as the row over the party chair’s tax penalty, a long-running investigation into the deputy prime minister, Dominic Raab, over bullying claims continues. Though Raab denies the claims, the fact there are two major unresolved issues concerning ministerial standards has allowed Sunak’s opponents to call into question his judgment for letting them continue serving in the cabinet.

Sources close to Sunak are confident that letting the investigations take their course is the best approach. “Stepping towards a politics where actually the first lever that we pull isn’t the one that sacks someone is better in the long run,” said a government insider.

There is nervousness about a repeat of the bad blood that was created when the then trade minister Conor Burns was sacked in October over allegations of inappropriate behaviour, before being cleared two months later.

However, while those close to Sunak stress he wants a healthier political culture where people accused of wrongdoing are properly investigated, there is equal frustration that Zahawi did not do what they believe was the honourable thing.

“He’s the bloody chairman, he should appreciate the damage he’s doing to the party,” said one frontbencher. “A lot of us don’t understand why we’re taking this damage and he hasn’t made this easier for Rishi and just quit.”

Conservative MPs report their postbags and inboxes are not yet filling up with outraged messages, and say it has hardly been mentioned on the doorstep when they head out campaigning or speak to constituents.

They are also trying to heed the message handed down by the Tory strategist Isaac Levido at the Chequers summit, where cabinet ministers were gathered for a series of strategy meetings on Thursday. “Isaac is crystal clear we have to have party unity,” said one insider.

So far, the number of Tory MPs who have put their heads above the parapet remains relatively low – the most high-profile being Jake Berry, who has shown himself unafraid to be a thorn in the side of Sunak’s government.

Most of the grumbling is taking place privately, though MPs are uncomfortable they are heading into a second weekend expecting more embarrassing allegations to emerge about Zahawi and the issue of who knew what about his tax dispute.

Government whips, who rang around MPs after the story about the Zahawi tax penalty emerged, report a growing number of their flock are getting disgruntled at the handling of the issue.

Resisting a swift sacking would enable Sunak to avoid yet another aggrieved former minister causing trouble for him on the backbenches. Should a damning verdict come back about Zahawi’s actions, the prime minister can say his hands are tied.

To help calm jitters, messages of reassurance have been dispatched that the inquiry by Sunak’s ethics adviser into Zahawi will be over quickly.

There is already talk of who should be lined up to replace Zahawi and Raab, should they both be forced out. A number of close Sunak allies with cabinet experience remain on the backbenches, waiting for a chance to be parachuted into government and help avoid a more complicated reshuffle.

But with no definitive deadline of when the two investigations will be resolved, time remains of the essence. As one senior Tory sighed: “We’re getting closer and closer to the general election, we can’t afford to waste energy and time on this sort of stuff.”
Newsletter

Related Articles

0:00
0:00
Close
Parliamentary Inquiry Highlights Urgent Need to Address Housing Shortage as Scottish Completions Hit Eleven-Year Low
United Kingdom and Singapore Sign Comprehensive Financial Agreement to Deepen Digital and Sustainable Market Ties
Greggs Announces Plan to Close Four Manufacturing Facilities and Cut Seven Hundred and Forty Jobs
International Monetary Fund Raises United Kingdom Economic Growth Forecast While Warning of Inflationary Pressures
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs Onto Gas to Lower Household Bills
Housebuilding Across Scotland Plummets to Eleven-Year Low Despite Government Pledges to Tackle National Housing Emergency
Greggs Announces Factory Closures Across Northern England and Scotland Affecting Seven Hundred Forty Jobs
United Kingdom and Singapore Conclude Eleventh Financial Dialogue in Singapore to Deepen Cooperation on Digital Finance and Capital Markets
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs to Gas Bills and Tap Windfall Profits to Lower Consumer Prices
British Broadcasting Corporation Announces Major Cost-Cutting Overhaul to Close Linear Broadcast Services for Television Channels BBC Three and BBC Scotland Alongside Digital Radio Station BBC Radio Four Extra
London Capital Markets Face Renewed Scrutiny After High-Profile Offerings Underperform Post-Listing
Green Party Wins Historic First Westminster Parliamentary By-Election in Gorton and Denton
Environment Secretary Emma Reynolds Unveils Sweeping Regulatory Overhaul for English Water Industry
United Kingdom Health Security Agency Confirms Thirty-Four Cases in Kent Meningitis Outbreak
Ministry of Defence Prepares Heat Pump Subsidy Cuts to Fund Urgent Military Modernization
British and European Union Officials Schedule Long-Awaited Bilateral Leaders Summit for November Twentieth
Bank of England Governor Andrew Bailey Urges Strict Fiscal Credibility to Protect British Bond Markets
United Kingdom Inflation Rises to Three Point One Percent Driven by Escalating Fuel Costs
Profit Warnings Among London-Listed Companies Reach Two-Year High Amid Global Energy Shocks
Chancellor John Healey Signals Targeted Tax Changes on Banks and London Corporate Offices Ahead of Budget
British Government Reallocates Twenty-Five Per Cent of International Climate Finance to Global Biodiversity Projects
Initial British Carbon Border Taxes Set to Undercut Parallel European Union Tariffs on Industrial Imports
Whitehall Prepares National Zero-Interest Loan Initiative to Accelerate Domestic Heat Pump and Solar Adoption
European Union Offers British Automakers Access to Hybrid Vehicle Trade Protections Subject to Strict Regulatory Alignment
British Probation Officers Threaten Widespread Industrial Action After Rejecting Five Per Cent Government Pay Offer
Microsoft Abandons Major British Artificial Intelligence Data Centre Citing Severe National Grid Power Constraints
United Kingdom Inflation Accelerates to Three Point Four Per Cent Ahead of Chancellor John Healey's Inaugural Autumn Budget
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
Influential Think Tank Urges Rejoining European Union to Navigate Geopolitical Crises
Government Review Recommends Slashing Benefits to Fund Youth Employment Initiatives
Senior Minister Shabana Mahmood Seeks New Law Enforcement Pact With European Union
Airbus Executive Warns Britain Risks Losing Crucial Role in European Space Industry
Exorbitant Electricity Costs Push British Steelmakers to Worst Competitive Position in Three Years
British Food and Beverage Exports to European Union Collapse by Over a Third Since Brexit
Up to Twenty English Maternity Units Face Impending Closure Due to Safety and Staffing Crises
Government Declares Severe Drought Across Southern England Following Record Dry Spell
Corporate Profit Warnings Reach Two-Year High Amid Middle East Conflict and Rising Costs
International Monetary Fund Warns Chancellor John Healey Against Proposed Bank Tax Raid
Northern Ireland Secures Favorable Agricultural Export Agreement with European Union
Scottish Government Approves Major Offshore Floating Wind Farm Near Aberdeenshire
High Speed Two Rail Project Faces Three Billion Pound Cost Escalation on Initial Phase
National Health Service Warns of Winter Capacity Crisis Across English Hospitals
Tata Steel Confirms Two Thousand Job Cuts at Port Talbot to Fund Green Transition
Global Microchip Developer Announces Three Billion Pound Semiconductor Plant in Cambridge
United Kingdom Artificial Intelligence Safety Institute Proposes Mandatory Licensing for Generative Models
United Kingdom Commits Additional Long-Range Weapons and Air Defenses to Ukraine
British Chancellor Overhauls Infrastructure Financing to Bypass Borrowing Constraints
Bank of England Holds Benchmark Interest Rate at Four Point Five Percent
First Minister Rhun ap Iorwerth Confirms Constitutional Discussions Over Welsh Independence During Initial Bilateral Call with Prime Minister
×