Tag: 2023

  • Kerry McCarthy – 2023 Parliamentary Question on Government Support for Grassroots Music Venues

    Kerry McCarthy – 2023 Parliamentary Question on Government Support for Grassroots Music Venues

    The parliamentary question asked by Kerry McCarthy, the Labour MP for Bristol East, in the House of Commons on 26 January 2023.

    Kerry McCarthy (Bristol East) (Lab)

    What support the Government are providing to grassroots music venues.

    The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Paul Scully)

    The Government are committed to supporting our grassroots music venues, the lifeblood of our world-leading music sector. Arts Council England has extended its Supporting Grassroots Live Music fund until 31 March 2023. During the pandemic, venues benefited from the cultural recovery fund; we are also supporting venues through the energy bills support scheme and will continue to do so through the energy bills discount scheme until spring 2024.

    Kerry McCarthy

    I draw the House’s attention to my entry in the Register of Members’ Financial Interests. With Independent Venue Week coming up next week, I pay particular tribute to Big Jeff, the best ambassador for grassroots music venues anyone could ever want, who is finally getting back out on the gig circuit after his terrible accident last year—thank you for indulging me on that, Mr Speaker. The sector is on a knife edge, sustained by a 0.2% profit margin. As I understand it —although the Minister may want to correct me, considering the answer he has just given—it is not included in the support for energy bills from 1 April. Will the Minister, if he does not have good news for me today, take that up with the Treasury as a matter of urgency, because it could be energy bills that finally push many independent music venues over the edge?

    Paul Scully

    I thank the hon. Lady and congratulate Big Jeff on all the work that he is obviously doing in the sector. We will certainly reflect on that. I think that the new energy scheme strikes the balance between supporting businesses over the next 12 months and limiting taxpayers’ exposure to volatile energy markets, and there is a cap based on estimated volumes. It is really important that we support music venues, hospitality and wider community venues to the benefit of our community and the amazing creative sector.

  • Michael Fabricant – 2023 Parliamentary Question on Broadband Speeds in Urban Areas

    Michael Fabricant – 2023 Parliamentary Question on Broadband Speeds in Urban Areas

    The parliamentary question asked by Michael Fabricant, the Conservative MP for Lichfield, in the House of Commons on 26 January 2023.

    Michael Fabricant (Lichfield) (Con)

    What steps she is taking to increase broadband speeds in urban areas; and if she will make a statement.

    The Secretary of State for Digital, Culture, Media and Sport (Michelle Donelan)

    We have made it as attractive as possible to deploy gigabit broadband in the UK by busting barriers and requiring Ofcom to promote competition and investment. There are now more than 80 providers investing nearly £35 billion rolling out gigabit broadband, and coverage has risen to 73% from 6% in early 2019. The vast majority of urban areas will be connected commercially, at no extra cost to the taxpayer, by 2025.

    Michael Fabricant

    As we have already heard today, the spread of broadband into rural areas is going ahead at pace, but there are pockets in urban areas—I think particularly of Westminster and the centre of Birmingham —where Openreach is using very old copper twisted-pair technology, which has been around for more than 100 years and cannot develop the speed. It is up to firms such as G.Network, Hyperoptic, Virgin Media and City Broadband to provide that service, but they do not always provide a telephone service. What can my right hon. Friend do to encourage Openreach to upgrade its technology and infrastructure in urban areas?

    Michelle Donelan

    London and the west midlands are among the best-connected regions in the country: coverage in London is at 83% and in Birmingham it is even higher at 93%. However, as my hon. Friend points out, there is still more to do. This month we have brought into force new laws that make it easier for telecom companies to get faster broadband into 9 million flats where people are living, and the vast majority of premises in urban areas will be connected by 2025, whether by Openreach or another provider, at no cost to the taxpayer.

  • Nicola Richards – 2023 Parliamentary Question on the Ownership Structure of Football Clubs

    Nicola Richards – 2023 Parliamentary Question on the Ownership Structure of Football Clubs

    The parliamentary question asked by Nicola Richards, the Conservative MP for West Bromwich East, in the House of Commons on 26 January 2023.

    Nicola Richards (West Bromwich East) (Con)

    What steps she is taking to review the ownership structure of football clubs.

    The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Stuart Andrew)

    The Government do not assess the ownership arrangements with individual clubs. However, the Government response to the recommendations made in the independent Fan-Led Review of Football Governance sets out our view that tests of new owners and directors are needed to ensure the future sustainability of football clubs and the stability of the game in total.

    Nicola Richards

    Thousands of West Bromwich Albion fans are deeply concerned about the actions of the club’s ownership. The owner took a £5 million loan from the club to fund his other business—money that is yet to be repaid. The club has now taken a high-interest loan of £20 million to fund day-to-day business secured against the club’s name and stadium. Will my right hon. Friend bring forward the Government’s response to the Fan-Led Review and introduce a regulator to give fans the power to stop owners abusing the club’s assets in this way and to penalise owners whose business decisions are not in the best interests of the football club?

    Stuart Andrew

    I add my congratulations to my hon. Friend on her recent wedding and praise her for the work she has been doing in this area in support of her local football club, working closely with fans’ groups such as Action4Albion and Shareholders for Albion. We will set out our plans for reform in the White Paper, which will be published in the next few weeks and will include strong action on owners and directors to ensure that they are suitable custodians for clubs and to avoid harm to fans and local communities such as she has described.

    Clive Efford (Eltham) (Lab)

    Sustainable ownership in the long term can only be achieved if we sort out football finance. There are negotiations going on at the moment between the English Football League and the Premier League around the issue of parachute payments, which create a financial imbalance, particularly in the championship. There are 14 clubs in the premier league that will not move on the issue of parachute payments, because they are the most likely to fall into the championship. Are the Government going to act on that, or will it take a Labour Government to do it?

    Stuart Andrew

    We have had extensive engagement with both the EFL and the Premier League, encouraging them to get on with the negotiations. Sometimes they have progressed and sometimes they have stalled, but I am pleased to say that they have been progressing somewhat more rapidly in recent weeks—I think the prospect of the coming White Paper may have encouraged that—and we hope they will come up with a solution that will bring financial stability to the whole of the pyramid.

  • Keir Starmer – 2023 Statement Following Death of Clare Drakeford

    Keir Starmer – 2023 Statement Following Death of Clare Drakeford

    The statement made by Keir Starmer, the Leader of the Opposition, on 28 January 2023.

    I’m deeply shocked and saddened to hear of the sudden passing of Clare Drakeford.

    On behalf of the whole Labour Party, I send our deepest condolences to Mark and all the family.

    They are all in our thoughts and prayers.

  • Nadhim Zahawi – 2023 Letter to Rishi Sunak Following his Dismissal

    Nadhim Zahawi – 2023 Letter to Rishi Sunak Following his Dismissal

    The letter sent by Nadhim Zahawi, the dismissed Chair of the Conservative Party, on 29 January 2023.

  • David Lammy – 2023 Comments on Dismissal of Nadhim Zahawi

    David Lammy – 2023 Comments on Dismissal of Nadhim Zahawi

    The comments made by David Lammy, the Shadow Foreign Secretary, on Twitter on 29 January 2023.

    Rishi Sunak is weak. That’s why it took him so long to act on Nadhim Zahawi when it was obvious to everyone else.

    Changing faces at the top of the Tory party won’t stop the carousel of chaos and scandal.

    We need a change of government.

  • PRESS RELEASE : Joint statement – Blue Pacific and Pacific Islands [January 2023]

    PRESS RELEASE : Joint statement – Blue Pacific and Pacific Islands [January 2023]

    The press release issued by the Foreign Office on 28 January 2023.

    Strengthening Shared Understanding among the Partners in the Blue Pacific and Pacific Islands.

    Strengthening Shared Understanding Among the Partners in the Blue Pacific and Pacific Islands: Illegal, Unreported and Unregulated Fishing (IUUF) and Maritime Domain Awareness (MDA)

    A workshop on “Strengthening Shared Understanding Among the Partners in the Blue Pacific (PBP) and Pacific Islands: Illegal, Unreported and Unregulated Fishing (IUUF) and Maritime Domain Awareness (MDA)” was held 24-26 January 2023 at the Daniel K. Inouye Asia-Pacific Center for Security Studies in Honolulu, Hawaii.

    This workshop brought together officials and experts from the Pacific Islands Forum Secretariat; the Pacific Islands Forum Fisheries Agency; the Pacific Fusion Centre; along with Pacific Island representatives; PBP partners Australia, Canada, Germany, Japan, Republic of Korea, New Zealand, the United Kingdom, and the United States; and PBP observers including the European Union, France, and India.

    The participants discussed the challenges around IUUF and MDA in the Pacific through a series of plenary sessions led by regional subject matter experts. The workshop culminated in discussions about regional priorities and opportunities for deepening cooperation on MDA. The workshop strengthened shared understanding of the IUUF and MDA challenges facing the Pacific, and identified areas for further cooperation.

    For further information on PBP see:

    https://www.gov.uk/government/news/joint-statement-on-the-establishment-of-the-partners-in-the-blue-pacific-pbp

    https://www.gov.uk/government/news/partners-in-the-blue-pacific-pbp-joint-statement-september-2022

  • PRESS RELEASE : Empowering MINUSMA to adapt is essential to building peace and stability in Mali – UK Statement at the UN Security Council [January 2023]

    PRESS RELEASE : Empowering MINUSMA to adapt is essential to building peace and stability in Mali – UK Statement at the UN Security Council [January 2023]

    The press release issued by the Foreign Office on 27 January 2023.

    Statement by Ambassador James Kariuki at the UN Security Council briefing on Mali.

    Thank you, President, and thank you SRSG Wane for your briefing. I join others in expressing our deepest condolences following the deaths of two MINUSMA peacekeepers in December; we salute the dedication of all personnel and condemn any attacks on peacekeepers.

    Let me begin, Mr President, by underlining that the UK remains committed to supporting the people of Mali as we are doing through humanitarian stabilisation and development aid, and as we have done through our contributions to MINUSMA. The Malian people deserve the support of the international community to address the challenges they have faced in recent years.

    In this context, we welcome the publication of the Secretary-General’s report on the review of MINUSMA, and thank the Secretariat and the mission for all their efforts.

    I have three points to make.

    First, we agree with the Secretary-General that business as usual is no longer an option. The Mission cannot continue as it currently stands, with restrictions hindering operations and without the full cooperation of the host government. The safety and security of Peacekeepers is at stake, as well as the reputation of the UN if it cannot effectively deliver its mandate and uphold UN principles, including on human rights.

    Second, the four parameters set out in the review are key for the continued viability of the Mission. We need to see tangible progress on the political transition and renewed commitment and dialogue on the Peace Agreement, including a way forward on DDR. We urge the Malian authorities to adhere to the Status of Forces Agreement, ensuring freedom of movement for Peacekeepers, and we expect to see greater access for the Mission to investigate human rights allegations.

    Third, President, we need to re-evaluate the support provided by MINUSMA to the Malian Defence and Security Forces. As the Secretary-General highlights, a number of military operations have been marred by allegations of violations of human rights and international humanitarian law.

    As others have said, the report also confirms the presence in Mali of the Kremlin-backed Wagner Group. In this context, we need a hard look at the relationship with the UN mission and Malian forces.

    President, the Council should use this review to take stock of the challenges and ensure the Mission adapts, as needed, in order to remain effective in a changed reality.

    There is a short window until the next mandate renewal. Progress against the Secretary-General’s parameters will be essential if we are to empower MINUSMA to make a meaningful contribution to building the peace and stability the Malian people deserve.

    Thank you.

  • Gillian Keegan – 2023 Speech to the Church of England National Education Conference

    Gillian Keegan – 2023 Speech to the Church of England National Education Conference

    The speech made by Gillian Keegan, the Secretary of State for Education, on 27 January 2023.

    Good morning – it’s fantastic to be here with you all today.

    As education secretary I often get asked what “education” means. Is it a particular subject, a skill, or is it something else?

    And you know – I think there’s one unifying factor.

    An education lets you do things that you couldn’t beforehand.

    Preparing for this speech gave me the opportunity to reflect on my own schooling which was always in faith schools.

    It was a different denomination – Catholic. I remember starting school aged four at St Mary’s, in St Helens, which is just outside Liverpool.

    It was a terrifying experience, I think it is always quite a terrifying experience when you start school. But not least because it was run by nuns and they were dressed in black robes and they absolutely terrified me.

    Through their kindness, I eventually overcame my fears and began to flourish in school. I learned an early lesson not to judge by appearance.

    Overcoming fear is a valuable life skill and one that I use everyday in the world of politics.

    Indeed, I’m using it right now at the annual conference of a church. A clear demonstration that I’ve learned to do something that I didn’t used to do.

    That is the power of education. Even if those nuns might say, I’m addressing the wrong denomination.

    I am grateful to Saint Mary’s and all my schools.

    All the teachers at the fantastic faith schools have got me to where I am today. They also instilled faith in me, which is still a core part of who I am today.

    Faith is something I think that everyone here can understand – and I want you to know how much I value the role the Church of England plays in educating our children.

    Its reputation for excellence in schools speaks for itself, and you are one of my Department’s most valued partners.

    You provide over a fifth of state-funded schools, a quarter of primary schools, and are the largest provider of academy trusts.

    Your schools are more likely to be good or outstanding than those without a religious character.

    There are Anglican colleges in every continent of the world, bar Antarctica. There is a potential growth opportunity there.

    You are transforming lives. You should be proud of the work you do, and on behalf of the children you teach, I am eternally grateful.

    Put simply, without the Church of England – pupils across the country would be learning less and doing worse.

    And a big part of that is that you have used the academy trust model. This is the structure that we think is going to make the biggest difference for our children, but we know it only works if focused on improving quality all the time, always striving for excellence.

    And I can promise you I will work tirelessly to support quality teaching and spread best practice. I’m taking forward the Review of regulation and commissioning, so we can do this to help improve outcomes for all our children.

    That’s also why I want more schools to be in high-quality trusts.

    To support you we will protect your schools, so that when they become academies they retain the statutory freedoms and protections that apply to Church schools.

    It means working in each area to shape the right plan at the right pace that builds the quality that pupils need.

    In the past 10 years we have made huge strides to give every child the chance in life they deserve. And all of you are central to that success.

    Today 88% of schools rated Ofsted good or outstanding, compared to 68% when we took office.

    From 2010, in just eight years we brought the UK up the PISA rankings from 25th to 14th in reading and 28th to 18th in maths.

    Your schools have played a massive part in this. But to really flourish, we must go further still.

    I am determined to ensure more children meet our expected standards at reading, writing and maths and I agree with the Prime Minister on maths to 18.

    We all use maths every day, from grocery shopping, to buying financial products, to mortgages, to understanding good debt from bad. And we must equip our children to deal with life’s complexities.

    But to make this all add up, there have to be great teachers.

    Many of you will have heard me praise my apprenticeship which provided me with a great start to my working life at 18.

    But that journey began with a school teacher called Mr Ashcroft.

    He would stay late to teach me and another girl technical drawing and engineering, and that allowed me to get 10 O-levels at a school where most struggled to achieve only 4 or 5.

    All thanks to one teacher at one school, helping me to realise my one opportunity.

    I want every child to be inspired by a teacher like Mr Ashcroft. That’s why we’ve put in place a world-class teacher development system.

    This includes the delivery of 150,000 fully funded National Professional Qualifications by 2024 and I want all school leaders to think about how NPQs can benefit both their staff and pupils.

    I know the Church of England is a valued provider of these.

    We also know they are hugely popular. So we want to see even more of our teachers doing them.

    But for teachers to have an impact, they need to be in school.

    I understand the pressures many people are facing including our teachers and we struggle with the economic challenges due to the war in Ukraine. Inflation eats away at all our pay checks.

    On the top of my in-tray when I got this job was a joint letter from the four major teaching unions – it asked for an extra £2 billion next year and the year after to support our schools with increased costs and to help fund this years pay awards.

    We were one of the few departments to be given money in the Autumn Statement.

    And yes, we did get £2 billion more both years. The unions asked, we delivered.

    That uplift means we will be funding schools, in real terms, at the highest level ever in history.

    It may not have been smart to use so much political capital in my first couple of weeks. But I hope it goes to show my personal commitment.

    I know from my speaking to thousands of teachers, many in your schools, that there is more to do.

    My promise to you is I will always listen.

    Saying my door is always open is a cliché but it is true. I am a very open person.

    My ask of all of you now is that you now work with me to keep as many children in school as possible during the disruptive strike action.

    I began by saying how my education had helped me in my career. I’d like to finish by sharing three key things I’ve learnt through that career.

    First, you don’t get far without acting on what you know works; second, you won’t achieve much without a visionary leader and finally, you’ll barely get out of the starting blocks without working together and collaborating with others.

    And I am looking forward to collaborating with you all to make sure our education system flourishes for all our children.

  • Laurie Magnus – 2023 Letter to Rishi Sunak on the Personal Conduct of Nadhim Zahawi

    Laurie Magnus – 2023 Letter to Rishi Sunak on the Personal Conduct of Nadhim Zahawi

    The letter sent by Sir Laurie Magnus, the Prime Minister’s Independent Adviser on Ministers’ Interests, to Rishi Sunak, the Prime Minister, on 29 January 2023.

    Dear Prime Minister,

    29 January 2023

    Introduction

    1. You have asked me to review the circumstances and facts concerning certain tax affairs of the Rt Hon Nadhim Zahawi, Minister without Portfolio, and that I assess these circumstances in the context of Mr Zahawi’s obligations under the Ministerial Code.
    2. This report sets out relevant facts that I have established whilst respecting Mr Zahawi’s right to taxpayer confidentiality. It provides my assessment of the Minister’s conduct under the Ministerial Code, both in terms of its specific provisions and its overriding principles.
    3. I should acknowledge that the Minister without Portfolio has provided his full and open cooperation in assisting with my inquiries. I am also grateful for the assistance I have received from officials at HM Revenue & Customs (HMRC) and the Cabinet Office.

    Scope of work and areas of inquiry

    1. The matter under review concerns the fact that Mr Zahawi was the subject of an HMRC investigation that resulted in a determination that tax was owed and that a penalty should be applied, falling into the HMRC category of “lack of reasonable care”. Mr Zahawi and HMRC have confirmed to me that this matter was resolved in principle in August 2022 with a settlement agreement signed in September 2022.
    2. The technical detail of HMRC’s investigation and their determination is outside my scope. I have focused on Mr Zahawi’s handling of the matter in light of his responsibilities as a Minister who is subject to the provisions of the Ministerial Code. The Ministerial Code makes clear that Ministers are expected to “maintain high standards of behaviour and to behave in a way that upholds the highest standards of propriety”, observing the Seven Principles of Public Life and having an “overarching duty … to comply with the law and to protect the integrity of public life”.
    3. As well as considering the above overarching obligations, I have considered three specific areas under the Code:
      1. i)  How the existence of an ongoing HMRC investigation was declared by Mr Zahawi with reference to his obligations under Chapter 7 of the Ministerial Code (up to August 2022).
      2. ii)  How the settlement of the HMRC investigation was declared by Mr Zahawi (from August 2022), and in particular in relation to his current role as Minister without Portfolio.
      3. iii)  The accuracy of public statements made by Mr Zahawi in relation to the matter, in view of his obligations under the Ministerial Code to be open and honest.

    Findings
    Declarations of ministerial interests

    1. The Ministerial Code sets out that “Ministers must ensure that no conflict arises, or appears to arise, between their public duties and their private interests”. All Ministers are subject to an extensive and rigorous framework, designed to provide clear guidance on how interests are declared and handled. This includes a requirement that Ministers complete declaration of interests forms (which include questions about the status of their tax affairs), ensuring these are kept up to date at all times, and also discuss potential conflicts and other relevant matters on an ongoing basis with their Permanent Secretary. Ministers are also expected to disclose any relevant issues, including those which might give rise to possible conflicts, during the process of their appointment to any ministerial role. As a Minister of long standing, Mr Zahawi has operated within this framework over a significant period and should be familiar with its requirements.

    Declaration of interests – HMRC investigation

    1. With Mr Zahawi’s agreement, I have met with HMRC and received some details, including the timing, of his interaction with them. This commenced in April 2021 and included a meeting which he and his advisers attended with them in June 2021. Mr Zahawi has told me that he had formed the impression that he and his advisers were merely being asked certain queries by HMRC concerning his tax affairs, and that this impression persisted until he received a letter from HMRC on 15th July 2022 (dated 13th July). The principle of taxpayer confidentiality continues to apply. However, on the basis of the confidential information to which I have had access, including correspondence between HMRC and Mr Zahawi personally, I consider that an individual subject to the HMRC process faced by Mr Zahawi should have understood at the outset that they were under investigation by HMRC and that this was a serious matter.
    2. I consider that an HMRC investigation of the nature faced by Mr Zahawi would be a relevant matter for a Minister to discuss and declare as part of their declaration of interests. I would expect a Minister to inform their Permanent Secretary and to seek their advice on any implications for the management of their responsibilities. I would likewise expect a Minister proactively to update their declaration of interests form to include details of such an HMRC process.
    3. After his appointment as Chancellor on 5th July 2022, Mr Zahawi completed a declaration of interests form which contained no reference to the HMRC investigation. A later form acknowledged (by way of an attachment) that Mr Zahawi was in discussion with HMRC to clarify a number of queries. Only following receipt of HMRC’s letter received on 15th July 2022 (dated 13th July), did Mr Zahawi update his declaration of interests form to acknowledge that his tax affairs were under investigation, but he provided no further details other than the statement made previously that he was clarifying queries.
    4. Given the nature of the investigation by HMRC, which started prior to his appointment as Secretary of State for Education on 15th September, 2021, I consider that by failing to declare HMRC’s ongoing investigation before July 2022 – despite the ministerial declaration of interests form including specific prompts on tax affairs and HMRC investigations and disputes – Mr Zahawi failed to meet the requirement (at paragraph 7.3 of the Ministerial Code) to declare any interests which might be thought to give rise to a conflict.

    Declaration of interests – settlement of tax matter and penalty

    1. Following an in-principle agreement in August 2022, in September 2022 Mr Zahawi and HMRC reached a final settlement of his tax investigation. As Mr Zahawi has intimated in his public statement of 21st January 2023, the settlement included a penalty applied on the basis of “carelessness” which, in this context, according to the HMRC Compliance Handbook, indicates an individual’s failure to take “reasonable care” in relation to their tax affairs.1
    2. As set out at paragraph 11, I consider that Mr Zahawi should previously have declared the fact of the investigation. The subsequent fact that the investigation concluded with a penalty in relation to the tax affairs of a Minister also requires declaration and discussion. It is a relevant interest which could give rise to a conflict, and particularly so in the case of HM Treasury Ministers and the Chancellor of the Exchequer, who has responsibility for the UK tax system. As a result of my inquiries, I conclude that Mr Zahawi failed to update his declaration of interest form appropriately after this settlement was agreed in principle in August 2022. It was not until mid-January 2023 (see paragraph 16) that details of the earlier HMRC investigation and its outcome were declared.
    3. I also conclude that, in the appointments process for the governments formed in September 2022 and October 2022, Mr Zahawi failed to disclose relevant information – in this case the nature of the investigation and its outcome in a penalty – at the time of his appointment, including to Cabinet Office officials who support that process. Without knowledge of that information, the Cabinet Office was not in a position to inform the appointing Prime Minister.
    4. Taken together, I consider that these omissions constitute a serious failure to meet the standards set out in the Ministerial Code.
    5. Mr Zahawi informed me that on 16th January 2023 he submitted, to his Permanent Secretary, his declaration of interests form in relation to his current role as Minister without Portfolio, to which he was appointed on 25th October 2022, and that in that form he included detail of the outcome of the HMRC investigation. At the time of my investigation this declaration was under consideration by the Permanent Secretary and had yet to be submitted onward to me for consideration. Given the seriousness of this matter, I would have expected Mr Zahawi to attend to his submission much more rapidly and, as stated in paragraph 14 above, to have notified Cabinet Office officials at the time of his appointment.

    Public statements

    1. On 10th July 2022, following media speculation, Mr Zahawi made a public statement. He said:

    “There have been news stories over the last few days which are inaccurate, unfair and are clearly smears. It’s very sad that such smears should be circulated and sadder still that they have been published.

    “These smears have falsely claimed that the Serious Fraud Office, the National Crime Agency, and HMRC are looking into me. Let me be absolutely clear. I am not aware of this. I have not been told that this is the case.

    “I’ve always declared my financial interests and paid my taxes in the UK. If there are questions, of course, I will answer any questions HMRC has of me.”

    1 HMRC internal manual Compliance Handbook: https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch81140

    1. Mr Zahawi has told me that at the time of this statement, he was under the impression that he was answering HMRC’s queries, but that he was not under investigation. As set out in paragraph 8, I consider that an individual subject to the HMRC process faced by Mr Zahawi should have understood that they were under investigation by HMRC and that this was a serious matter.
    2. Under section 1.3(d) of the Ministerial Code, Ministers have a duty to “be as open as possible with Parliament and the public”. Whilst this duty clearly does not extend to disclosing personal tax information, it does include a general duty to be accurate in statements to ensure a false impression is not given or maintained.
    3. Mr Zahawi did not correct the record until 21st January 2023, when Mr Zahawi’s public statement indicated that he had reached a settlement with HMRC following an investigation. I consider that this delay in correcting an untrue public statement is inconsistent with the requirement for openness.

    Conclusion

    1. The General Principles of the Ministerial Code are very clear. Paragraph 1.1 states, “Ministers of the Crown are expected to maintain high standards of behaviour and to behave in a way that upholds the highest standards of propriety”. Paragraph 1.3 states, “The Ministerial Code should be read against the background of the overarching duty of Ministers to comply with the law and to protect the integrity of public life. They are expected to observe the Seven Principles of Public Life”. One of the Seven Principles of Public Life is Leadership, which requires that holders of public office should not only exhibit the principles in their own behaviour but also actively promote and robustly support the principles.
    2. A Minister of the Crown has a responsibility to lead by example, demonstrating not just compliance with the Ministerial Code, but being an exemplar for integrity in public life. This means upholding high standards of propriety in their conduct as citizens and being actively conscious of possible conflicts between their private interests (financial or otherwise) and their ministerial responsibilities. Paragraph 7.2 of the Ministerial Code states that, “It is the personal responsibility of each Minister to decide whether and what action is needed to avoid a conflict or the perception of conflict”.
    3. I consider that Mr Zahawi, in holding the high privilege of being a Minister of the Crown, has shown insufficient regard for the General Principles of the Ministerial Code and the requirements in particular, under the seven Principles of Public Life, to be honest, open and an exemplary leader through his own behaviour. I want to commend Mr Zahawi for his willingness to assist with my inquiry. I also fully appreciate the pressures faced by Ministers as they address the complex issues of government and the difficulties they encounter in balancing the demands of their personal lives and their ministerial responsibilities. These factors, however, cannot mitigate my overall judgement that Mr Zahawi’s conduct as a Minister has fallen below the high standards that, as Prime Minister, you rightly expect from those who serve in your government.

    Yours sincerely,

    Sir Laurie Magnus CBE

    Independent Adviser on Ministers’ Interests