Nadhim Zahawi: 'Unanswered questions remain' over taxes as PM defends his party chairman

"Unanswered questions remain" over Nadhim Zahawi's taxes, Labour has claimed, as reports the Tory party chairman paid a seven-figure sum to settle a dispute with the tax office continue to swirl around Westminster.

Nadhim Zahawi: 'Unanswered questions remain' over taxes as PM defends his party chairman

The story first came to light at the weekend in The Sun on Sunday, which said the row arose "after scrutiny of his family's financial affairs".

Instead, we received a broader comment from the MP's spokesperson, who said his tax affairs "were and are fully up to date and are paid in the UK", adding: "He has always said that he will answer any questions from HMRC as he always has done."

HMRC will not comment on individual cases.

The issue was raised during Wednesday's Prime Minister's Questions by Labour MP Alex Sobel, who asked Rishi Sunak if he was "aware of an investigation when he appointed him to his cabinet and as chairman of the Conservative Party".

He also asked if the PM would "demand accountability from his cabinet members about their tax affairs".

Mr Sunak said that his colleague had "already addressed this matter in full and there's nothing more that I can add".

His spokeswoman from Number 10 was pushed again after PMQs, and said she did not know if Mr Sunak had reviewed the situation "in full".

But she said the prime minister had full confidence in him, adding he “takes Nadhim at his word”.

Labour has now called for Mr Zahawi to make a statement about the reports.

A party spokesman said "unanswered questions remain", adding it had not been "the most transparent process" since questions were first raised about his tax affairs last year.

-sky news