‘I haven’t paid an HMRC fine’ Hunt confirms, as calls mount for Zahawi to go over tax fiasco
Chancellor Jeremy Hunt said he has never paid a tax fine, as ministers’ financial affairs come under scrutiny amid growing calls from Conservatives for Nadhim Zahawi to stand down.
Hunt raised suspicions by twice refusing to say whether he has paid a penalty as he took questions after an economic speech, claiming the public are not “remotely interested” in the subject.
But then he went on to tell broadcasters in an interview a short while later on Friday that “for the record I haven’t paid an HMRC fine”.
He was responding to questions amid growing calls for Zahawi to step aside as Conservative Party chairman while under investigation for settling a multimillion-pound tax dispute while chancellor.
Zahawi has authorised HM Revenue and Customs to discuss his settlement – estimated to be worth £4.8 million and include a penalty – with the investigation ordered by Rishi Sunak.
Pressure on ministers only grew after HMRC boss Jim Harra told MPs there are “no penalties for innocent errors in your tax affairs”.
Under questioning after a Bloomberg speech inn London, Hunt said: “I’m not going to talk about my personal tax affairs, but I don’t think there’s anything you’d find interesting to write about if I can put it that way.”
I don’t normally comment about my own tax records, but I am Chancellor so for the record I haven’t paid an HMRC fine
Jeremy Hunt
He declined to answer when pressed again and added: “By the way, I don’t think people at home are remotely interested in personal tax affairs, they are interested in these things,” gesturing towards the Government’s five priorities.
But a little while later he dropped his opposition to answering the question.
“I don’t normally comment about my own tax records, but I am Chancellor so for the record I haven’t paid an HMRC fine,” he told broadcasters.
Similar confusion occurred on Wednesday after Downing Street initially refused to say whether Rishi Sunak had paid a penalty, saying his tax affairs are “confidential”.
Hours later, No 10 released a statement saying: “The Prime Minister has never paid a penalty to HMRC.”
Senior Tory MP Sir Jake Berry has said it is “unsustainable” for Zahawi to remain in power, arguing it was necessary to step aside while under investigation so the public can have faith in the process.
The former minister, who was Zahawi’s direct predecessor as party chairman, told BBC Question Time: “Even though he is a friend of mine, I’m not going to allow that to distract from a view I’ve put forward consistently.
“The Government needs to find a mechanism for ministers and MPs who are under investigation in this way to step aside, to clear their name, and then to come back into government if that is appropriate.
“I think from Nadhim, great individual that he is, that would be the right thing to do now.
“I do think it’s unsustainable for a minister to stay in this post while this investigation goes on.”
Sunak has refused calls from Labour and other senior Tories including Caroline Nokes to remove Zahawi from his post either permanently or temporarily.
On Thursday, a source close to Zahawi said he would permit HMRC to share details of his case with ministerial standards adviser Sir Laurie Magnus.
The revelation came after Harra told the Public Accounts Committee the department could only co-operate with the investigation if given approval by Zahawi.
“There are no penalties for innocent errors in your tax affairs,” the HMRC chief executive added.
The Guardian reported that Zahawi’s penalty stood at 30% of the settlement, which he dealt with while chancellor.
Sunak maintained his position on Thursday that he will “await the findings” of the investigation into whether Zahawi broke the ministerial code.
Speaking during a Cabinet away day at Chequers, the Prime Minister told broadcasters: “I’m not going to pre-judge the outcome of the investigation, it’s important that the independent adviser is able to do his work.
“That’s what he’s currently doing, that’s what I’ve asked him to do and I’ll await the findings of that investigation.”
A week ago, Sunak told Prime Minister’s Questions that Zahawi had addressed the fiasco “in full”.
But he went on to launch an investigation by Sir Laurie, his independent adviser on ministers’ interests, admitting there were “questions that need answering” after the penalty was revealed.
Sunak insisted that “no issues were raised with me” when he appointed Zahawi to his current role, amid questions over his political judgment.
Press Association – Sam Blewett