London Daily

Focus on the big picture.
Thursday, Dec 25, 2025

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
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
×