Ex-Tory Chancellor sacked over tax spat defects to Nigel Farage's Reform

Former Tory MP and Cabinet minister Nadhim Zahawi briefly served as Chancellor between July and September 2022 during the dying days of Boris Johnson's premiership

A former top Tory who once likened Nigel Farage to Hitler's chief propagandist has been unveiled as Reform's latest Conservative defector.

Multi-milionaire Nadhim Zahawi, who was sacked from government for failing to declare his tax affairs were being investigated, has also previously said he would be frightened to live in a country run by Mr Farage. After his defection was announced, the Tories claimed Mr Zahawi had repeatedly asked for - and been refused - a peerage from his old party.

He becomes the latest in a long line of Conservatives to jump ship to Reform, which is currently ahead in the polls. His defection has led to claims Nigel Farage's party has become a "retirement home for disgraced former Conservative ministers".

And the Tories shot back: "Reform is fast becoming the party of has-been politicians looking for their next gravy train. Their latest recruit used to say he'd be 'frightened to live in a country' run by Nigel Farage, which shows the level of loyalty for sale."

Paul Nowak, TUC General Secretary, told The Mirror: "Is it surprising that a multi-millionaire, tax-averse Tory is defecting to Reform?

"Not in the slightest. It's just more proof that Reform is on the side of the super-rich - not working people."

Mr Zahawi, who banked £1.3million from oil company Gulf Keystone Petroleum while working as an MP, was fired as Conservative chairman in 2023 after he was found to have breached the ministerial code over his tax affairs.

He later confirmed he paid a penalty of nearly £5million to HMRC in order to settle the matter. The wealthy businessman was an MP for 14 years, during which time he was famously forced to admit claiming expenses to heat the stables at his Warwickshire estate.

In 2023 the BBC estimated his wealth to be up to £100million, with previous business ventures including running a company that marketed Teletubbies merchandise.

A Tory source said: "Nadhim asked for a peerage several times. Given he was sacked for his dodgy tax affairs, this was never going to happen. His defection tells you everything you need to know about Reform being a repository for disgraced politicians."

Both Mr Farage and Mr Zahawi have a long history of taking swipes at each other. In 2015 Mr Zahawi reacted furiously when his new leader suggested ripping up discrimination laws stopping employers from rejecting applicants because of their race or nationality.

He said at the time: "It’s a remark that Goebbels would be proud of." This was a reference to Joseph Goebbels, who was in charge of the Nazi propaganda machine.

Mr Zahawi, who was born in Baghdad, also branded Mr Farage's ideas "deeply racist". Within minutes of the defection on Monday it was also highlighted Mr Zahawi had accused Mr Farage of being "offensive and racist" in the same year.

A post on X, which appears to have been deleted, said: "I'm not British born Mr Nigel Farage - I am as British as u r. Yr comments r offensive & racist. I wld b frightened 2live in a country run by U."

But Mr Zahawi told a reporter who raised the comment: "Good on you for digging out a tweet from 11 years ago." There was no love lost in the other direction either, with Mr Farage telling GB News when Mr Zahawi became Chancellor: "I thought Zahawi had principles, but tonight we learned all he's interested in is climbing that greasy pole."

And when he was sacked as Tory chairman in 2023, the Reform leader whined that then-PM Rishi Sunak has acted too slowly. He wrote: "It has been obvious for a week that Zahawi would have to go. Sunak is a follower, not a leader."

He was removed from his post after an investigation found he had committed a serious breach of the ministerial code by not declaring the tax dispute. But Mr Farage played down the controversy, telling a press conference: "There's nobody with a complex business empire that does not have to have negotiations at some point with HMRC.

"That is how the world works, and I'd much rather have Nadhim who has been through that experience and come out the other end. He could have just gone abroad. He could have just disappeared for a few years, not paid any tax, which by the way, increasingly is what people are doing."

Labour Party chairwoman Anna Turley said: “This confirms what we already knew: Reform UK has no shame. Nadhim Zahawi is a discredited and disgraced politician who will be forever tied to the Tories’ shameful record of failure in government.

“Zahawi himself has previously repeatedly lambasted his new boss over his divisive and extreme rhetoric - and Farage has said that Zahawi has no principles and is only interested in climbing the greasy pole.

"This shameless scurry of yet another failed Tory over to Reform will tell people everything they need to know about both of them."

Manuela Perteghella, the Lib Dem MP for Stratford-on-Avon, Mr Zahawi's former seat, said: "Reform is becoming a retirement home for disgraced former Conservative ministers. Zahawi served under Liz Truss and Boris Johnson and now he's being championed by Nigel Farage."

Mr Zahawi briefly served as Chancellor between July and September 2022 during the dying days of Mr Johnson's premiership.

He had also been Mr Johnson's vaccine minister during the Covid pandemic. The ex-Tory frontbencher claimed Britain is "drinking at the last chance saloon" and "really does need Nigel Farage as Prime Minister".

Appearing at a Westminister press conference, Mr Zahawi was asked if he was uncomfortable with his new party platforming a scientist who blamed the Covid vaccine for members of the royal family getting cancer.

Dr Aseem Malhotra made the outlandish remark at Reform's party conference last year. Mr Zahawi responded: "I would not be sitting here, nor would Nigel be sitting next to me, if we didn't agree that we did the right thing for the nation to get the vaccine programme to the success that it achieved."