Nadhim Zahawi absolutely not quitting over tax as Sunak under pressure to sack Tory chair

Nadhim Zahawi is not planning to resign as Conservative Party chairman despite paying a penalty to resolve a tax dispute with HMRC.

An ally said on Monday that the former chancellor absolutely will not be quitting in the face of growing pressure over his settlement, estimated to be around 5 million.

Rishi Sunak has been urged by Labour to sack Mr Zahawi, whom he brought back into a Cabinet-attending role after entering No 10.

The prime minister faces questions about the appointment as his promise of a premiership of integrity was thrown into disarray by a series of scandals.

A source close to Mr Zahawi did not answer questions on the penalty but said: He is absolutely not resigning.

Mr Zahawi has insisted his error over shares in the YouGov polling company he co-founded was careless and not deliberate .

The BBC was told that Mr Zahawi did pay a penalty reported by the Guardian to be around 30% taking the total estimated settlement to around 4.8 million.