Rishi Sunak refuses to state Nadhim Zahawi has been honest about taxes

Rishi Sunaks political distancing from Nadhim Zahawi has taken another step, with Downing Street refusing to say the prime minister is confident the embattled Tory chair has been consistently honest about his tax affairs.

Sunaks decision to order an inquiry by his new ethics adviser notably failed to limit the fallout from Zahawis still-opaque dealings with HMRC, while a former Tory minister called for him to step aside while the investigation takes place.

No 10 has failed to give a vigorous defence of Zahawi after it emerged he resolved a multimillion-pound tax dispute by paying a penalty, but seems content to let him stay on as party chair and a cabinet minister, to the disquiet of some Conservative MPs.

Asked on Tuesday if Sunak believed Zahawi had always told him the truth over tax, the prime ministers spokesperson said there had not been discussions between the pair on that specific level of detail.

Asked if Sunak thought Zahawi had been honest more generally, the spokesperson said: I dont have much to add beyond what the prime minister set out yesterday. There is some ongoing work now by the independent adviser to ascertain the facts. And I think its right that hes allowed to carry out that work, rather than me cutting across it.