Devon councillors abandon cruise ships for homeless idea

Councillors in Devon have rejected a proposal to use cruise liners as temporary accommodation for refugees and homeless people.

www.bbc.co.uk

Several Torridge district councillors questioned the practicality of the idea.

A report said cruise ships could become unstable in shallow water, so dredging would be needed and a quay wall reinforcing.

The council’s Community and Resources Committee voted against the proposal.

Labour group leader Cllr David Brenton brought the suggestion to the council’s attention in December.

He cited the district’s desperation to find a home, even if only temporarily, for those in dire need, said the Local Democracy Reporting Service (LDRS).

‘Step too far’

A report by council officers said cruise ships could become unstable in shallow water, so dredging would be needed to enable vessels to moor, and the quay wall at Appledore’s Middle Dock would need reinforcing.

Mr Brenton told the committee he had no intention of using big ships in the area, just vessels for up to 100 people.

But independent Councillor Claire Hodson said: “We need to focus on what we’re doing.

“We do not need to go chasing what might be. We have plans in progress to add to our housing supply.”

She added: “I commend Cllr Brenton for coming up with an idea, but we are a small authority.”

Conservative Councillor Simon Newton said it was a “step too far”.

“It also risks complicating a major project that we’ve now just got lined up funding-wise, and I don’t think we should be doing anything to try to complicate what is going to be a major project,” he said.

Mr Brenton was the only one at the meeting who voted against the decision to drop his idea, with eight councillors in favour of abandoning the ship.

Councils freeze levelling up projects as soaring costs exceed grants

 “As a result of the Tories crashing the economy and pushing UK inflation to nearly the highest rate in the G7, vital projects have been delayed and now many face being downsized or scrapped altogether.

“This is symptomatic of a broken system where communities are forced to go cap-in-hand to Whitehall for small pots of money with strings attached. It leaves them especially exposed to economic shocks – not least those brought on by Tory governments.” – Lisa Nandy, The shadow levelling up secretary.

But first win the “Beauty Contest” – Owl

Jessica Elgot www.theguardian.com

Councils are being forced to freeze levelling up projects or find millions from their own squeezed budgets to complete works because of soaring costs which have exceeded government grants.

At least £500m has been lost from projects funded by different government levelling up schemes due to inflation and rising costs, the Guardian can reveal. The true losses are likely to be even higher because for some funds the government will pay out on the delivery phase, which could be several years later.

The levelling up secretary, Michael Gove, will address the Convention for the North on Wednesday amid criticism of the latest round of levelling up funding from some MPs, including anger that London was getting more than Yorkshire and north-east England. The government has argued that per capita, the north and the Midlands have benefited more.

However, the number of projects funded by Whitehall-allocated schemes are now under threat because of the soaring costs – which have also meant councils taking on additional risk.

New leisure buildings, high street regeneration, museums and public spaces have been hit by rising costs, including in Calderdale, Preston and Greenock.

Analysis of data from the House of Commons Library shows that, based on the latest projections from the Office for Budget Responsibility (OBR) at the time of the autumn statement, £576m has been lost from different levelling up funds because of inflation.

The analysis of the overall real-terms loss was done by Labour, which found there was about £137m lost from the levelling up fund from round one, £196m from the UK shared prosperity fund, £172m from the towns fund, £60m from the future high streets fund and £9m from the community renewal fund.

The analysis looked at inflation projections taken from the OBR’s autumn statement analysis, as well as looking at the real-terms value of the levelling up fund from the first round of awards based on inflation in the construction industry, given those projects are overwhelmingly infrastructure-based.

In Halifax, a new swimming pool and leisure centre are on hold for at least a year because of rising costs. Calderdale council received £12.2m for the project in October 2021 but costs could rise by a further £4m according to local reports.

Halifax’s Labour MP Holly Lynch said inflation was having a chilling effect on the first round of projects. “Too many of its first-round projects have had to be paused or shelved because of spiralling costs,” she said.

“The government wants the credit for these projects yet the economic landscape they have created is making them impossible to deliver.”

The council said the project was unsustainable in its current form because of multiple budget pressures after years of austerity and the impact of the pandemic. It said it forecast that it would need to make tens of millions of pounds more in budget savings until 2026 because of inflation.

Analysis has also been done by the Institute for Public Policy Research, which found £1 in every £13 could be lost to inflation if the government did not act to protect investment.

Jack Shaw, a senior research fellow at IPPR North, said: “Projected spend has consistently fallen short, meaning the true cost of inflation is likely much higher, and further delays will only increase the pain facing local authorities as the impact of inflation accumulates.”

In many cases, projects are going ahead but will need increased funding from local councils, which are already under budget strain. In Preston, the council has been hit by spiralling costs for its town centre redevelopment, for which it received more than £20m in 2019.

Some of the related projects now had “significant challenges with cost inflation”, said Preston city council’s chief executive, Adrian Phillips. In one scheme, the Grade II-listed Amounderness House regeneration, the council has had to use borrowing to plug the funding gap because otherwise it would not be able to proceed.

In another scheme backed by the towns fund, the council has had to significantly reduce the work and go back to the government to seek consent.

“The costs were so high and we had no flexibility so we are just reducing the area we can benefit,” Phillips said. The council has also had to find more than £1m extra for the refurbishment of the Harris museum, where scaffolding costs alone have risen to more than £1m, meaning potential delays to other capital projects.

Phillips is among many local authority leaders who have criticised the approach of bidding for central funding posts. “Funding from government is always welcome but you have to enter numerous competitive bidding rounds, they are time-consuming and costly for very limited funds,” he said.

“There are also ludicrous delivery timescales, set nominally by the Treasury, that are not optimal for bringing in partnerships. If it has to be spent by March 2025, for a major capital programme [that] is not flexible enough.”

Preston was also successful in the latest round of levelling up funding bids, gaining £20m to regenerate parks. “That is fraught with challenge in terms of cost inflation,” he said.

“The government have made clear you cannot go back for more. At times you do have to downscale and then go back for consent. It’s an enormously stressful process and the worst thing is when you promise something and are not able to deliver all of it.”

In other areas, there have been warnings from those who won funding in the latest round that they are already facing budget pressures. Councillors in Greenock, Inverclyde, said their costs had already soared since making their successful bid.

The council was awarded £20m to demolish and reroute the A78 dual carriageway to transform Greenock town centre, including new public squares and green spaces. But the council has said it is likely to need another £2m to deliver everything.

The Inverclyde council leader, Stephen McCabe, from Scottish Labour, told the Greenock Telegraph he was delighted with the bid’s success, but added: “Inflation will already have eaten away at the funding amount we bid for, so our project team will need to assess how this might impact on the scope of the project and whether additional funding will be needed to deliver the full plan as envisaged.”

Labour has said it would end the competitive bidding process by radically increasing devolved powers – and said the Conservatives were to blame for soaring inflation.

The shadow levelling up secretary, Lisa Nandy, said: “As a result of the Tories crashing the economy and pushing UK inflation to nearly the highest rate in the G7, vital projects have been delayed and now many face being downsized or scrapped altogether.

“This is symptomatic of a broken system where communities are forced to go cap-in-hand to Whitehall for small pots of money with strings attached. It leaves them especially exposed to economic shocks – not least those brought on by Tory governments.”

A spokesperson for the Department of Housing, Levelling Up and Communities said: “We are closely monitoring the impact of inflation on projects and working closely with councils and delivery partners to ensure public services are protected and levelling up projects delivered.”

The department said it had set up a project adjustment process to work on the scope and phase of projects to mitigate delivery problems. It said £65m of support was being made available to successful applicants in the form of commercial advisers, grants to buy local support, and a training package.

Integrity and transparency Tory style

Panel approving Richard S harp as BBC chair included Tory party donor

The four-strong advisory assessment panel, which ultimately decided that five of the 23 applicants were fit for the job, was formed on the basis of three members being considered independent.

Now read on, looks all very chummy to Owl.

Mark Sweney www.theguardian.com 

The government-appointed panel that approved Richard Sharp as a prime candidate for the role of BBC chair included a Conservative party donor and prospective MP, as well as the wife of the former chair of the Spectator who worked with Boris Johnson when he edited that political magazine.

As Sharp faces multiple investigations, amid allegations he helped Johnson secure a loan of up to £800,000 weeks before he was recommended for the job by the latter, the potential conflicts of interest among panel members responsible for interviewing and recommending candidates for the job have come under scrutiny.

The four-strong advisory assessment panel, which ultimately decided that five of the 23 applicants were fit for the job, was formed on the basis of three members being considered independent.

The selection panel was made up of Sarah Healey, permanent secretary at the Department for Digital, Culture, Media and Sport, who oversaw the short-listing process before the final decision made by Johnson.

The independent directors included Catherine Baxendale, a former Tesco executive, who was shortlisted to be a Tory parliamentary candidate in 2017, and who gave £50,000 to the party when David Cameron was prime minister.

The panel also included Blondel Cluff, wife of Algy Cluff, the North Sea oil tycoon, who owned the Spectator from 1980 until 1985. Cluff remained as chairman until the end of 2004 working with five editors – including Charles Moore, the government’s first choice for BBC chair – and Johnson.

Blondel Cluff, who two years ago was the beneficiary of the government’s public selection process becoming chair of the National Lottery community fund, has previously lavished praise on the “optimism and drive” that made Johnson’s leadership “inspirational and unifying”.

The fourth member of the panel was the senior independent director Sir William Fittall, who spent almost 30 years in the civil service before retiring in 2002. He died last March.

The process for selecting “appointable” candidates, which included a presentation, broadcast interview scenario test and interview, had resulted in action by the public appointments watchdog concerned that ministers were breaching a strict code on political neutrality and independence.

In October 2020, Peter Riddell, the former commissioner for public appointments, tweeted that he had to push for panelists to be changed over concerns about ministers appointing people who were not independent of the Tory party, or who were “allies”. While the final appointment is ultimately made by cabinet ministers and the prime minister, Riddell said that ministers were attempting to “tilt the process” from the outset.

The move to replace panelists came amid growing concern that the government was seeking to “rebalance” the boards of public bodies, particularly in the arts, heritage and broadcasting sectors, by appointing allies and blocking critics, in part to help it fight “culture wars”.

The government also pursued a protracted and ultimately unsuccessful process to try to install Paul Dacre, former editor of the Daily Mail, as chair of the broadcasting regulator Ofcom, which has oversight of the BBC.

Dacre flunked his interview with the selection panel, which determined he was “unappointable”, and he pulled out after ministers were criticised for re-running the process to give him a second chance.

In the case of Sharp, Riddell wrote a letter to the chair of the culture select committee of MPs in early 2021 following the announcement of Sharp as the government’s preferred candidate for BBC chair.

The select committee, which publicly interviews preferred candidates ahead of an official appointment by ministers, comments on the “cosiness in the upper echelons of public appointments” and Sharp’s ties with Rishi Sunak and Johnson.

In the letter to the committee, Riddell said that his assessment was that the selection panel had run a “well conducted and thorough process” and that the “candidates’ potential conflicts of interest were fully explored”.

On Monday Riddell said that it was right that his successor, William Shawcross, whose daughter is Sunak’s deputy chief of staff, was investigating Sharp’s recruitment process since the panel was not aware of the role he played in helping Johnson seek to secure a loan.

In written evidence provided by Sharp to the committee ahead of the interview he did not raise his involvement with Johnson’s loan when responding to the question: “Do you currently or potentially have any business, financial or other non-pecuniary interests or commitments, that might give rise to the perception of a conflict of interest if you are appointed?”

Kevin Brennan, a member of the DCMS select committee, said in the Commons on Monday: “Helping to raise an £800,000 loan for the person ultimately responsible for your appointment should have been declared in response to that question.”

Sharp has agreed to appear before the committee on 7 February to face questions regarding the Johnson scandal.

[Richard Sharp has told the BBC that he is confident that the investigation by William Shawcross, public appointments commissioner, will find that was appointed on merit. According to the Times he has privately hired the crisis communication specialist Garfield Advisory to help him respond to scrutiny. – Owl]

A party of the rich, for the rich

The Guardian view on Tory millionaires: a party of the rich, for the rich

Editorial www.theguardian.com 

Written in an earlier time about misgivings over the accumulation of power and money, the words of F Scott Fitzgerald are apposite today. “They were careless people,” laments the narrator of his classic novel The Great Gatsby. “They smashed up things … and then retreated back into their money or their vast carelessness.” The Tory party chairman, Nadhim Zahawi, paid, it appears, about £5m in penalties and outstanding taxes to His Majesty’s Revenue and Customs. Mr Zahawi says his mistakes were “careless”. But how could the Conservatives ever have allowed somebody, as they did with Mr Zahawi, to become chancellor when he was in dispute with the tax authority, for which the chancellor is responsible? It is a conflict of interest that no one could miss – unless, perhaps, they too were being careless.

We all can be remiss. But not to the extent that we forget, apparently, to report an estimated £27m to HMRC. Rishi Sunak appointed Mr Zahawi to be Tory party chair and gave him a seat at his cabinet table. The prime minister claims not to have been apprised of the facts before defending Mr Zahawi at the dispatch box last week, or when he gave him his current job. A stronger prime minister would have done the right thing and sacked Mr Zahawi. Mr Sunak has referred the matter to his ethics adviser. But the occupant of No 10 does not need a report to tell him who should be in his cabinet. Mr Sunak is a weak prime minister: he has to go in to bat for colleagues for fear of them refusing to do the same for him. He risks the government losing trust in him.

Mr Zahawi was only chancellor for two months. But it speaks volumes about his character that he took the job. It would have been sloppy for Simon Case, the cabinet secretary, not to have known about Mr Zahawi’s tax problem before his promotion. That might explain why a story surfaced this weekend that claimed Mr Zahawi was denied a knighthood after the Cabinet Office contacted HMRC “as part of the normal due diligence”. Mr Case would also have been negligent not to have raised the prospective chancellor’s tax conflict with Boris Johnson, the then prime minister. It may be too much to ask for Mr Johnson, a serial liar, to find anything improper in the arrangement. But he should have vetoed Mr Zahawi for the role.

Reputations rarely survive contact with Mr Johnson. He thinks it’s fine for the current BBC chairman, Richard Sharp, to have helped arrange a guarantee on a loan of up to £800,000 for himself weeks before recommending him for the role. Neither man reported this arrangement, which they should have. Mr Sharp was privy to politically damaging information. The public perception of the BBC’s impartiality and independence has been harmed by its chair’s lack of judgment. Auntie’s board will look at the matter, and the public appointments commissioner will investigate Mr Sharp’s appointment after being urged to intervene by Labour’s Lucy Powell. However, don’t hold your breath. A wealthy insider, Mr Sharp has made his services too useful to be dispensed with easily.

These goings-on offer a parable about the corrupting role of inequality in society, a central theme of Fitzgerald’s book. What has made Britain ungovernable is not strikes and inflation but factional infighting within the Conservatives – which looks like a party of the rich, for the rich. Mr Sunak’s government seems too riven by disputes and too weak to implement big reforms. The impotence of Mr Sunak has replaced the chaos of Mr Johnson. With the Tories in charge, Britain has become a country with a government that cannot do anything of importance.

‘Huge concerns’ in Whitehall about Government’s behaviour during Zahawi row, insiders say

The impartiality and integrity of the Civil Service is being put at risk due to the rows involving Nadhim Zahawi and Boris Johnson’s financial arrangements, insiders have told i.

[“The many lives of UK Cabinet Secretary Simon Case” (www.politico.eu),  paints a picture of a highly-politicized player working at the center of the Whitehall machine — a civil servant who operates more as ministerial courtier than the traditional, faceless mandarin. As an ex-Johnson aide put it: “This is a man who would literally sell his mother to survive.”] – Owl

Jane Merrick inews.co.uk

Cabinet Secretary Simon Case and Whitehall’s propriety and ethics team have been dragged into both affairs, because civil servants offered advice on the arrangements.

Whitehall insiders said as full official advice to ministers – with qualifications – cannot be made public, disclosures about Mr Johnson and Mr Zahawi’s financial affairs being approved is undermining the integrity of the Civil Service.

Caroline Slocock, a former private secretary to Margaret Thatcher when she was PM, said the entire process of upholding standards in public life needs to be made independent to prevent civil servants from being dragged into ministerial scandals.

In the case of Tory chairman Mr Zahawi, it has been reported that the Cabinet Office’s propriety and ethics team raised the issue of his tax affairs directly with Mr Johnson before he was appointed Chancellor.

Mr Zahawi’s allies have insisted he flagged it with the ethics unit before the appointment.

Mr Case has been dragged into the row over Mr Johnson’s £800,000 loan from a Canadian millionaire when he was prime minister because the Cabinet Secretary was introduced to the businessman, Sam Blyth, by the BBC chairman Richard Sharp.

A Whitehall insider said there were “huge concerns about the integrity and impartiality of the civil service being undermined” under the current leadership.

They added: “Under the ministerial code there is a requirement for ministers to protect the impartiality and integrity of the Civil Service and not to put the Civil Service in a position where impartiality is threatened.

“Whether it is sustainable that civil servants can continue to advise ministers and prime ministers on issues which go to the heart of integrity if the prime minister and ministers are going to break that, and civil servants cannot do anything about it other than resign, that is a valid question.”

Ms Slocock, who is director of the Civil Exchange, told i: “I think that in the light of the Johnson premiership and recent scandals, greater independence and oversight is required of the system that enforces standards in public life.

“Ultimately, civil servants work for the Government of the day and the PM sets the tone. Civil servants advise, they don’t decide.

“As the Priti Patel affair demonstrated, it is the PM not the ethics adviser who decides whether or not the Ministerial Code is broken. Press reports suggest that the propriety and ethics team did raise a red flag on the Zahawi appointment as Chancellor, which was ignored.

“The Committee on Standards on Public Life recently proposed that the Code and adviser should be more independent, and I agree with them, and there is also a case for the ethics team being placed at arm’s length from Government.”

Ms Slocock joined calls from MPs for the register of ministerial interests, which has not been published since last May, to be updated and to include offshore trusts held by the ministers themselves and family members, and a record of all gifts and loans.

She added: “I don’t really understand why Simon Case was involved in sorting out the PM’s personal finances, which is suggested by Richard Sharp’s account of events, and hope that he will be questioned about that by Parliament.”

Sir Peter Ridell, the former Commissioner for Public Appointments, said Mr Case should have told the advisory panel overseeing the BBC chairman appointment what he knew about Mr Sharp’s connection with Mr Johnson.

More from Conservatives

Sir Peter, who was commissioner when Mr Sharp was appointed BBC chairman, told Times Radio: “That’s possibly one of the issues which will be examined, because I’m absolutely certain that his colleague who chaired the panel did not know.

“Yes, I think probably he should have made it aware to his colleague who’s chairing the panel.

“I think perception is really important. And yes, he should have said, ‘Look, I was involved at an earlier stage with an issue involving the prime minister… But I’m no longer involved’, and that would have acted as reassurance, so you’d recognise there was a potential conflict.

“Whether there was – which he denies – is a matter for the investigation to establish. But I think it would have been in everyone’s interest that there’d been much greater transparency early on.”

Liberal Democrat Chief Whip Wendy Chamberlain said: “No wonder Conservative sleaze has taken root at the heart of Government. For months, there wasn’t even an ethics adviser. Then, when Rishi Sunak finally appointed one, it turned out the adviser wasn’t even independent at all – the Prime Minister has the power to block his investigations.

“Rishi Sunak promised to govern with integrity, but so far it’s been the very opposite. If he really wanted to restore standards in public life, the least he could do is make the ethics adviser truly independent, as well as handing over the appointment process to Parliament.”

Last minute advice for those finalising their January tax return – be careful!

(Also applies to Tory Cabinet members, especially Chancellors of the Exchequer.)

“Careless “and  “Carelessness” as explained in HMRC internal manual:

“Careless” means a failure to take reasonable care in relation to your tax affairs.

Carelessness can be likened to the longstanding concept in general law of “negligence”.

www.gov.uk

Zero tolerance: Ethical values must be integral to government and other public bodies, says standards watchdog

The Committee on Standards in Public Life, with great prescience, issued on Tuesday its review on standards entitled: “Leading in Practice” . –  Owl recommends it to EDDC’s CEO, Mark Williams,

“The Seven Principles of Public Life (the Principles) apply to all public office-holders and those delivering public services. They are the bedrock that underpins and gives meaning to the rules that govern public office, and they represent a common understanding of public service. However, the ethical values reflected in the Principles will not become the cultural norm within an organisation without active attention.” [First para of Lord Evan’s Forward]

www.oxfordmail.co.uk 

Strong ethical values must be “woven into every aspect” of the way government bodies and other public organisations operate, the Whitehall standards watchdog has warned.

The Committee on Standards in Public Life said while a “robust ethical culture” should be integral to the way organisations operate, too often it takes a crisis for leaders to act.

In a report highlighting best practice in the public sector, the committee said there should be “zero tolerance” for conduct that falls short of the required standards, with clear consequences when they are not met.

It noted there was no single ethics programme in Whitehall, and that while the Cabinet Office propriety and ethics team was able to provide advice, it was a small group and limited in what it could do.

The committee chairman, Lord Evans of Weardale, a former director general of MI5, said establishing a values-driven culture required positive action by the leadership of an organisation and could not be left to chance.

“Doing things in the right way and in the public interest is critical for public confidence in the bodies that operate on the public’s behalf and supports the delivery of public services,” he said

“A robust ethical culture supports effective risk management – if people see thinking about ethical issues as part of their job and feel safe to speak up, this can pick up potential concerns before they escalate.

“Our evidence shows that an ethical culture does not emerge by accident. It requires discussion and action.”

In its report, the committee said the evidence it received underlined the importance of the Nolan principles of public life, established after the cash-for-questions scandal with rocked Sir John Major’s government in the 1990s.

“We heard that zero tolerance of behaviour that does not align with the values of the organisation is essential for embedding good practice. Leaders must be clear that there is a line which, when crossed, results in consequences,” it said.

“Focusing on how to ensure that ethical values are woven into every aspect of how an organisation operates is critical to good leadership. Yet, disappointingly, it often takes a crisis for senior leaders to prioritise action in this area.

“Our strong view is that the ethical health of an organisation cannot be left to chance. Leaders must ensure that the principles of public life are integral to how public sector organisations operate and how the people in them make decisions and treat each other.”

Deputy Labour leader Angela Rayner said the findings should be a “mark of shame” for Mr Sunak.

“Instead of building a strong ethical culture he’s paying lip service to integrity, while preserving the rotten regime of his predecessors with sleaze and scandal running rife on his watch.”

A Government spokesperson said: “The Government takes propriety and ethics in public life very seriously.

“Within departments, judgments on matters relating to ethics and standards are the responsibility of permanent secretaries, who can draw upon the expertise of the Cabinet Office’s Propriety and Ethics Team.”

Where can I complain about Stagecoach bus services?

Yesterday a correspondent asked Owl:

“Where can I complain about the useless Stagecoach service to Seaton, Devon from Exeter?”

This correspondent is unlikely to be the only one seeking the best way to complain.

The facebook based TEABAG (The Exeter Area Bus Action Group) is doing sterling work holding Stagecoach to account.  Each week they have a special post to report specific services that go wrong that week but also do other posts regarding poor services.

Readers might like to add their experience of complaining about Stagecoach services to this page.

Whoops!

Another female Tory councillor quits amid ‘bullying’ claims

Philip Churm www.plymouthherald.co.uk

Plymouth’s former deputy lord mayor, Cllr Maddi Bridgeman, has resigned from the Conservative Party following an ongoing row with council leader Richard Bingley in which she says she has been “harassed, bullied, and publicly humiliated.” Allegations the local Tory group have denied.

Cllr Bridgeman has served her Moor View constituency as an independent councillor since being suspended from the Tory group in November while an investigation was underway.

However, in a resignation email to the Conservative Party she asked to make a formal complaint against leading Tories adding: “My reasons for my resignation and the formal complaint are that I have been harassed, bullied, and publicly humiliated whilst holding a senior position in public office, all because of my sex, I am a woman.”

The row began last year after former Tory leader Cllr Nick Kelly (Compton) was ousted by Mr Bingley.

Cllr Bingley, who represents Southway, had been criticised for comparing Cllr Bridgeman to Saddam Hussein’s notorious right-hand man Izzat Ibrahim al-Douri and referring to her as a “cheerleader.”

Cllr Bridgeman asked for a public apology but says she has never received one.

The comments emerged in a recording, released online, in which Cllr Bingley also makes angry and offensive comments about Tory colleagues, including calling former leader, Cllr Nick Kelly a “weak, two-faced git.”

Cllr Bridgeman said she is devastated by the vitriolic attacks on her, which she describes as sexist and insulting, especially when being compared to the Saddam Hussein’s genocidal right-hand man.

She was suspended from the Tory group just days after an independent inquiry upheld complaints made by her about Cllr Bingley.

The inquiry into Cllr Bingley began last April and concluded that he had breached the code of conduct relating to “courtesy and equality” and “disrepute.” It resulted in a formal letter of reprimand from the monitoring officer.

Cllr Bingley was not punished by the Conservative group he leeds.

Last month, a report by the Conservative association criticised Cllr Bridgeman’s social media activity in which she referred to one councillor as an “inexperienced student.”

The report also condemned her for shortening Cllr Bingley’s first name, “Richard,” to “Dick.”

The Tory councillor for St Budeaux, Pat Patel, said: “In the British modern vernacular, ‘Dick’ means ‘penis’ and Cllr Bridgeman uses this derogatory term on several occasions referencing Cllr Richard Bingley.”

Cllr Bridgeman rejected the claims and highlighted many well-known people with the shortened version of “Richard” including Dick Emery, a 1970s television comedian, Dick Cheney, who was US vice president at the time of the 2003 invasion of Iraq, and former Plymouth councillor Dick Mahony.

The Conserative association report says Cllr Bridgeman’s claims of “misogynist and sexist nature are totally inappropriate and amount to unbefitting conduct.”

The Conservative Party group was contacted for a response and a spokesperson said: “We have a policy of not discussing private disciplinary matters.”

You don’t need a lettuce to see how this one ends!

Front page of the Daily Star

“We were just off to Tesco to buy another 60p lettuce to pit against forgetful taxpayer and ex-chancellor Nadhim Zahawi when we thought why bother…. He’s already toast.”

Conservatives and cash flows

Nadhim Zahawi remains Chairman of the Conservative Party. What message does that send? – Owl

The majority of voters want Nadhim Zahawi to be sacked as Conservative Party chairman, polling has shown in the first indication of public opinion about his tax affairs row. www.telegraph.co.uk 

Investigation launched into appointment process of BBC chairman after Boris Johnson loan claim

More on “one of our (multi-millionaire) chums” – Owl

An investigation will be launched into the appointment of the BBC chairman following reports he helped Boris Johnson secure a loan.

Faye Brown news.sky.com 

William Shawcross, the Commissioner for Public Appointments, said he would review the competition which led to Richard Sharp’s appointment while Mr Johnson was prime minister.

He made the announcement in response to a request from shadow culture secretary Lucy Powell.

He said: “The role of the commissioner is to oversee the public appointments process and ensure appointments are made fairly, openly and on merit.

“I intend to review this competition to assure myself and the public that the process was run in compliance with the government’s governance code for public appointments.”

The Sunday Times reported Mr Sharp was involved in arranging a guarantor on a loan of up to £800,000 for Mr Johnson in late 2020, and that the then-prime minister went on to recommend him for the top job at the BBC.

The government’s paymaster general, Jeremy Quin, told the Commons on Monday Mr Sharp went through an “incredibly robust process” by an independent panel ahead of his appointment and is “absolutely confident” the “usual process” will have been followed.

But the SNP’s John Nicholson, who was on the Culture Select Committee Mr Sharp appeared in front of, said it was “all a bit banana republic” after he said they “grilled him about his £400,000 gift to the Conservative Party”.

“However, he did not disclose his role in getting the man appointing him a huge loan,” Mr Nicholson told the Commons.

Earlier on Monday, the chairman asked for the BBC to review any potential conflicts of interest he may currently have to ensure that “all appropriate guidelines have been followed” since he joined the broadcaster.

“We have many challenges at the BBC and I know that distractions such as this are not welcome,” he said in a statement read out on BBC News.

The review will not look at his links to Mr Johnson’s loan, but in a letter to BBC staff, Mr Sharp clarified some of the details surrounding the Sunday Times report.

He confirmed he introduced multimillionaire Canadian businessman Sam Blyth to cabinet secretary Simon Case “as Sam wanted to support Boris Johnson”.

“I was not involved in making a loan, or arranging a guarantee, and I did not arrange any financing. What I did do was to seek an introduction of Sam Blyth to the relevant official in government,” he said.

“Sam Blyth, who I have known for more than forty years, lives in London and having become aware of the financial pressures on the then-prime minister, and being a successful entrepreneur, he told me he wanted to explore whether he could assist.”

Mr Blyth is a distant cousin of Mr Johnson’s.

Timeline

November 2020:

According to the Sunday Times the loan guarantee was first suggested by Canadian millionaire Sam Blyth during a dinner with Richard Sharp.

Early December 2020:

In early December, Richard Sharp put Sam Blyth in contact with the Cabinet Secretary, Simon Case.

Late 2020:

Before the end of the year, Richard Sharp and Sam Blyth met with Boris Johnson for dinner at his country residence, Chequers. They insist the prime minister’s finances were not discussed.

January 2021:

At the start of January, the government announced Richard Sharp as the preferred candidate to be BBC chairman.

The statement was released moments after Mr Johnson said that Mr Sharp “knows absolutely nothing about my personal finances”.

Speaking to Sky News he said: “This is a load of complete nonsense – absolute nonsense.

“Let me just tell you, Richard Sharp is a great and wise man but he knows absolutely nothing about my personal finances – I can tell you that for 100% ding-dang sure.

“This is just another example of the BBC disappearing up its own fundament.”

The BBC reported that Mr Sharp “has agreed with the board’s senior independent director” that the nominations committee will look at conflicts of interest when it next meets and, “in the interests of transparency, publish the conclusions”.

Ms Powell said there also needed to be an independent investigation into the hiring process “to satisfy the public and parliament of its integrity”.

On the commissioner opening an investigation, Labour’s shadow culture secretary said: “The BBC Chair, Number 10 and the Department for Digital, Culture, Media and Sport clearly have questions to answer.

“This probe is welcome news and should shine a light on this appointments process and provide reassurance to the public.”

The party has also reported Mr Johnson to the Parliamentary Commissioner for Standards, saying the former prime minister’s financial affairs are “dragging the Conservative Party deeper into yet another quagmire of sleaze”.

The Cabinet Office has insisted Mr Sharp was appointed “following a rigorous appointments process”.

This included assessment by a panel of experts and “additional pre-appointment scrutiny by a House of Commons Select Committee”, according to a statement released yesterday.

Voting record – Simon Jupp MP, East Devon

Since becoming a PPS Simon is no longer a free agent. He is obliged to toe the party line. Though you can see from his voting record that he has generally been doing that anyway. – Owl

As a result of COVID-19, some MPs were less able to vote in Parliament in certain periods, and this will be reflected by absences in their voting record.

www.theyworkforyou.com

How Simon Jupp voted on Foreign Policy and Defence #

Last updated: 18 May 2022. Learn more about our voting records and what they mean.

How Simon Jupp voted on Constitutional Reform #

Last updated: 14 March 2022. Learn more about our voting records and what they mean.

How Simon Jupp voted on Business and the Economy #

Last updated: 8 December 2021. Learn more about our voting records and what they mean.

How Simon Jupp voted on Welfare and Benefits #

Last updated: 18 May 2022. Learn more about our voting records and what they mean.

How Simon Jupp voted on Taxation and Employment #

Last updated: 18 May 2022. Learn more about our voting records and what they mean.

Council lifts the lid on ‘heart-wrenching’ mould misery 

A family in Exmouth whose children were bullied at school because their damp and mouldy bedrooms made their uniforms smell have been helped by the district council and landlord.

Becca Gliddon eastdevonnews.co.uk

East Devon District Council (EDDC) said it decided to lift the lid on the ‘heart-wrenching story’ of the privately-renting family in a bid to encourage tenants to seek support and ‘not suffer in silence’.

The family – from an unnamed area of Exmouth – were left living in a damp home, with black mould growing up their bedroom walls and ceilings.

The council said condensation had begun running down the walls ‘with an overwhelming smell of damp infesting the home’.

mould

The bathroom wall was covered in black mould. Photo: EDDC.

The children had only one set of school uniforms, which were washed every day – but the youngsters were bullied by other pupils when the clothes failed to properly dry because the family could not afford to use the tumble drier.

Instead, the kids’ clothes were dried in front of a heater in the living room and started smelling when the heating stopped working properly

EDDC said the family’s ‘willing landlord’ made changes to the property once he was made aware of the damp.

After the family contacted the council, it was found they were eligible for financial help to cope with the cost-of-living crisis – finding funding for extra school uniform, food and white goods.

The investigating officer at EDDC said: “We learnt the resident had just one set of school uniforms for their children, which was being washed every day.

“Although they had a tumble dryer the family couldn’t afford to use it so were drying their clothes on a heater in the living room.

“Not only this, but they also couldn’t get the heating to work properly.”

They added: “We gave general advice about condensation and heating, and referred the resident to the resilience team who found that they were eligible for money towards school uniforms, white goods and food.”

Exeter Community Energy gave practical advice on energy efficiency so the tenant could save money on their energy bills, EDDC said.

The investigating officer said: “As well as this, we recommended the tenant wrote to their landlord so our team could arrange to do a full inspection of the property with the landlord – this resulted in the installation of an electric extractor fan in the bathroom and kitchen to remove moisture, reducing condensation.

“The landlord altered the worktops in the kitchen, so the tumble dryer could be installed and used properly also and showed the tenant how to use the heating.

“All the area affected by mould were also cleaned and re-painted.”

The district council said the damp and mould season has coincided with scores of residents struggling with the cost-of-living crisis, and concerns over how to afford to heat their homes.

EDDC urged tenants to inform landlords if they are struggling with home repairs in rented properties.

The council said its environmental health private sector housing team receives at least one call a week from tenants reporting damp and mould problems.

Councillor Dan Ledger, EDDC portfolio holder for sustainable homes and communities, said: “It was really nice to know our officers were able to help this family in need who didn’t know what to do to fix the issue in their home.

“In this case, we worked with a very willing landlord who wanted to help as much as we did, once they knew there was a problem at the property.

“A big part of officers’ jobs is to help tenants communicate issues when they either don’t know how to themselves, are embarrassed or are worried, so need support contacting their landlords.”

Cllr Ledger added: “We would like to encourage anyone who is having damp or mould issues, or any other repair problems, to contact their landlord or letting agent. And if they still need help, your council is here to help you.”

An spokesperson for the council said: “One of EDDC’s many roles is to help residents struggling with the cost-of-living – which is why its financial resilience team plays such a crucial role in assessing and offering advice, as well as direct support to make sure residents can get the best help available – that they would otherwise not know about.

“The team works with various partner organisations and are experts in knowing who can help when and referring residents in need.”

‘Wild camping ban on Dartmoor is a threat to us all’

Martin Shaw, Chair East Devon Alliance www.exmouthjournal.co.uk

The High Court ban on “wild camping” on Dartmoor is a threat to us all. A right enjoyed over many decades shouldn’t be abolished by the stroke of a judge’s pen. Like most people who visit the moor, the vast majority of campers act responsibly and respect the environment. Dartmoor is a national park, protected by law for the enjoyment of all, and the national park authority rightly defended the right to wild camp.

This case also involved an abuse of multimillionaire power. Hedge fund manager Alexander Darwall, who with his wife Diana brought the court case, purchased 4,000 acres of Dartmoor twelve years ago and organises pheasant shoots and deerstalking on them. Mr Darwell seems to think that having made millions from handling other people’s money, he can trample over the rights of the public to enjoy Devon’s most precious open space.

The compromise supported by the Totnes Tory MP Anthony Magnall (who accepted £5,000 from Mr Darwall), that wild camping will still be allowed where landowners opt in to a scheme administered by the park authority, involves a bureaucratic waste of public money and restricts where people can camp. This “stitch up”, as campaigner Guy Shrubhole, of campaign group Right to Roam calls it, is no substitute for the right to camp freely.

Richard Foord, our own Liberal Democrat MP, was on the ball, immediately tabling a motion in Parliament calling for a change in the law to protect this. Green MP Caroline Lucas followed this up with a private member’s bill. Echoing other campers’ comments, Richard said, “As a child, I wild camped on Dartmoor when training for the Ten Tors expedition and for the Duke of Edinburgh award. Without these experiences I would not have joined the army or trained to be a mountain leader.“

Yet Mr Darwell is not the only financier disrespecting our environment this month. Rishi Sunak, our near-billionaire prime minister, took an official plane from London to Leeds – a two-hour train journey – just for a photoshoot. 

Mr Sunak tells us he’s committed to stopping global heating, but actions speak louder than words. He then flew up North again to promote some of the successful bids for the “Levelling Up Fund”, while other ministers sped off to all the regions where bids had been approved. In East Devon, the bid for Exmouth, represented by Tory Simon Jupp, was approved, while that for Seaton and Axminster, in Richard Foord’s constituency, was rejected. As he commented, we have been taken for granted yet again.

The only silver lining that I can see – since the Tories have shamelessly used the Levelling Up money to boost their chances in marginal seats – is that it means that while they’re still hoping Simon Jupp can sneak back in the general election, they’ve written off their chances of unseating Richard, who is making a great impression as our district’s first non-conservative MP.

Unfortunately we’ll have to wait for the election, and our chance to pass judgement on this sorry excuse for a government, until 2024. But there is hope in 2023 – in May we elect our district councillors, and I can tell you that the excellent local coalition of the East Devon Alliance, Liberal Democrats and Greens is firing up to regain control. They have made a great start in reforming EDDC after 45 years of Tory misrule – including a real priority for climate action in all that the council does – and deserve to be re-elected.

The next month will see conversations in all wards about who will stand for the council. Some sitting councillors will stand down and many of the Tories deserve to be removed by the voters, so we are looking for fresh faces. If you think you could contribute to EDDC, do contact a sitting councillor or one of the parties in the coalition.

Planning applications validated by EDDC for week beginning 9 January

Blast from the past: Warwickshire Tory MP Nadhim Zahawi used firm in tax haven to buy his £1m home

This is a story from ten years ago. 

Owl still can’t get their head around someone so careless as to let a £5m bill to HMRC “slip between the cracks” could ever be fit to be Chancellor. Suppose it’s only small change to Rishi!

Les Reid www.coventrytelegraph.net 

Millionaire MP Nadhim Zahawi used a company in an offshore tax haven to buy his constituency home in Warwickshire.

Conservative MP Mr Zahawi – an adviser to David Cameron – used the company in low-tax Gibraltar as a lender to buy an estate and riding stables now worth £1 million in Upper Tysoe, near Stratford-upon-Avon, in 2011.

Berkford Investments Limited were traced to a PO box in the British overseas territory off Spain and to a residential address in Putney, south London.

Documents obtained from Companies House in Gibraltar show Berkford Investments Limited is managed by T&T Management Services Limited, which shares the same address.

Using offshore companies is commonplace and not unlawful. There is no suggestion that Mr Zahawi or his wife avoided any taxes by financing their purchase with a mortgage from the Gibraltar-based company.

Earlier this month, it was revealed that Mr Zahawi’s MP expense claims for his Upper Tysoe 31-acre ‘second home’ estate included energy bills of £5,800 in 2012/13, including for his riding school business.

MPs’ expenses can only be claimed “wholly, exclusively and necessarily” in performing Parliamentary duties.

Mr Zahawi initially denied wrongdoing, but later admitted a “mistake” in claiming for the riding school, and pledged to pay back any claim made in error.

“While a meter was installed in the stable yard I have only been receiving one bill and had not deducted usage on that meter from my claims,” he explained.

Mr Zahawi and his wife Lana used the Gibraltar company when the couple became the “registered owners” for Oaklands stables in May 2011, a year after the London-based wealthy businessman became MP for Stratford.

The couple bought the property for £875,000, and Berkford Investments Limited is registered as the “lender” for the purchase. Documents state a charge as security against the property is owned by the lender “Berkford Investments Limited (incorporated in Gibraltar)”.

Two addresses are given for the company – a residential property in Putney, London SW15, and 28 Irish Town, PO Box 15, Gibraltar. Company records trace Berkford Investments Limited back to 2006.

Gibraltar promotes itself as a low-tax location for finance and business. It features heavily in websites advising the wealthy on how to minimise taxes by setting up a company there.

Despite Gibraltar’s long-standing reputation as a tax haven, it is not among the Organisation for Economic Co-operation and Development’s list of “uncooperative tax havens” – set up to help stamp out tax evasion and improve transparency.

Mr Zahawi was asked whether he considered it politically unwise to have any arrangement with Berkford and T&T Management Services Ltd.

Mr Zahawi responded: “I did pay stamp duty on my property in Tysoe and have always paid stamp duty on my property purchases.

“I fully support the 2012 budget and all budgets of this government. I purchased my property in Tysoe with a mortgage from a Gibraltar company.

“This fact and the details involved are fully declared on the Land Registry and to suggest it is in any way hidden would be factually incorrect.

“Equally, to suggest that in any way I am using offshore to reduce my tax burden is entirely incorrect.”

* Rising Tory star Nadhim Zahawi, a Kurd whose family fled Iraq for the UK when he was nine, is also the registered owner of another residential property in Putney, which he bought for £1.85 million in December 2005.

The father-of-three’s business consultancy firm, Zahawi & Zahawi Ltd, is registered to this address with Companies House.

His declarations in the MPs’ Register of Financial Interests include his non-executive directorship of London-based SThree specialist recruitment firm, from which he receives a monthly salary of £2,916.67 for seven hours’ work attending board meetings.

Zahawi & Zahawi Ltd is also registered. Mr Zahawi’s shareholding in YouGov Plc is mentioned despite it being below the “registrable level”.

Mr Zahawi’s declarations under ‘Land and Property’ in last month’s MPs’ register of interests includes “31 acres of land in Warwickshire, with stables run as a livery yard by Zahawi & Zahawi Ltd.”

Also entered is: “Residential buy to let property in London, divided into three flats (Registered 12 June 2013).”

Land and Property entries in the register in January last year included: “One residential property in London, from which rental income is received, Sale of flat completed on 31 January 2011.”

His entry in September 2010 also listed: “One residential property in London, from which rental income is received.”

A previous version of this story which was first published in 2013 said T&T management services ltd’s website advertises its services as administering trusts for wealthy individuals and families to manage their assets, and avoid or minimise paying property taxes. We have been asked to point out T&T Management Services Limited is regulated by the Gibraltar Financial Services Commission to provide company management and trust services and they have advised that the business of TTMS does not include the avoidance or minimisation of property taxes. CoventryLive is happy to clarify this.

Cullompton’s relief road in doubt as Levelling Up bid fails again

“People across Tiverton & Honiton will rightly be outraged by this decision, which is holding up key projects like the Cullompton Relief Road and investment in both Axminster and Seaton” – Richard Foord MP.

Lewis Clarke www.devonlive.com

The future of Cullompton’s long-awaited relief road has been thrown into doubt after a bid for £19.5million Levelling Up funding failed. A second bid to the Government’s Levelling Up Fund, submitted by Mid Devon District Council has ended in disappointment following the announcement on Thursday, January 19.

The Council submitted a bid for £19.5 million of funds from the scheme which, combined with funding from Devon County Council and the Housing Infrastructure Fund, would have delivered the remaining money needed to build the town centre relief road for Cullompton. Despite a strong bid the Government has now confirmed the bid was unsuccessful.

It was one of a number of projects across Devon will failed to succeed in its bid. But bids for Appledore, Exmouth and Okehampton did succeed.

Councillor Richard Chesterton, cabinet member for planning and economic regeneration, said: “It is obviously extremely disappointing that Mid Devon has once again been unsuccessful. This was a high quality submission, supported by extensive technical evidence which clearly set out the need for funding in order to tackle existing transport and air quality challenges within the town, as well as the need to unlock strategic growth within the town.

“Clearly, the decision not to fund the delivery of the relief road will now directly limit housing and economic growth within Cullompton and have implications for the district as a whole.”

Even though the news is disappointing Mid Devon District Council remains committed to supporting investment in Cullompton, to address these existing challenges in the town and to realise strategic growth within the town as foreseen through the Local Plan.

The relief road, which has already secured planning permission, is considered to be a major strategic growth project for the district. Its delivery would unlock environmental and air quality improvements within Cullompton town centre, as well as unlock early growth capacity at J28. It is also needed to allow the area to meets its future housing delivery plans.

As such the Council will now seek other funding opportunities to support the delivery of the relief road whilst progressing the delivery of other key infrastructure projects, including the re-opening of Cullompton railway station by May 2025.

MP for Cullompton, Richard Foord added his frustration saying: “This news is a body blow for our communities, who have been crying out for this vital investment for years. By failing to honour their commitments to level up our part of Devon, the Conservatives have shown just how woefully out of touch they are.

“It’s clear they are continuing to take our communities for granted and have yet to hear the message from their by-election loss last summer. “People across Tiverton & Honiton will rightly be outraged by this decision, which is holding up key projects like the Cullompton Relief Road and investment in both Axminster and Seaton.

“I will continue to hold the Government to account and demand that the South West gets the investment we have long been promised – so we can unlock the true potential of our part of Devon.”

Speaking after a debate in the House of Commons he added: “Sat in the chamber and it’s pretty galling to hear Conservative MPs standing up one after the other to boast about the success of their Levelling Up bids – with some directly attributing it to the fact their party is in Government. No wonder Sunak’s patch got £19m while we got £0.”

Nadhim Zahawi misled his officials over Greensill texts from Cameron

Nadhim Zahawi wrongly told officials that he had not exchanged WhatsApp messages with David Cameron before it emerged that they had been deleted from his phone, The Times can disclose.

George Grylls, Billy Kenber www.thetimes.co.uk 

The Conservative Party chairman falsely claimed that he had not exchanged messages with Cameron when the former prime minister was trying to secure government loans for Greensill Capital.

It later emerged that the pair had discussed Greensill when messages from the instant-messaging phone app were released to a select committee inquiry into the lobbying scandal.

The revelations will add to pressure on Zahawi, who is facing calls to resign after he admitted reaching a settlement with HM Revenue and Customs over unpaid tax. He faced a reported bill of more than £5 million which included a tax penalty and interest payments over unpaid capital gains tax on shares in YouGov, the polling company that he co-founded. The shares, which were issued when the company was founded in 2000, were held by an offshore trust controlled by his father.

In a statement on Saturday describing it as a “careless, not deliberate” error, Zahawi said that his representatives had discussed and settled the issue with HMRC over the summer.

The settlement was agreed during his time as chancellor last summer, when he had direct oversight over tax policy, it has emerged. Zahawi admitted that an agreement was reached before he joined Liz Truss’s short-lived cabinet in September. It indicates it was negotiated and confirmed in less than two months. He has not confirmed the size of the payment.

Zahawi is fighting for his political career over the issue, which he initially dismissed last year as “smears”. Labour said that it was “corrosive to public trust”, and Sir Iain Duncan Smith, the former Conservative leader, told the BBC’s Sunday with Laura Kuenssberg that Zahawi should “get it all out now . . . and clear it up”. Angela Rayner, the Labour deputy leader, called for the release of all correspondence with No 10 and for Rishi Sunak to “come clean on what he knew and when” about Zahawi’s tax affairs. It was reported by The Sun on Sunday that Zahawi had been blocked from receiving a knighthood recognising his work as vaccines minister because of his tax affairs.

Separately, the Times can reveal further details about Zahawi’s involvement in the Greensill lobbying scandal along with Richard Sharp, the BBC chairman facing questions about a loan guarantee that he allegedly gave to Boris Johnson.

During the pandemic Cameron contacted Zahawi, who at the time was a minister in the Department for Business, Energy and Industrial Strategy, to ask for advice about approaching Sharp, a Tory donor and former banker who was advising Rishi Sunak when he was chancellor.

Cameron wrote: “Hi there. Well done with keeping going in the midst of all this. You’ve been v solid on the media. Lex Greensill — who I work with — says you are being v helpful over HMT and CBILS programme. Would it help if I pinged a message to Richard Sharp? I used to see him a bit in early leadership days but haven’t so much recently [. . .] All good wishes Dc.” There was no record of a reply from Zahawi. However, Cameron then sent a second message, saying: “Ta. Will do. Can you send me his contact details? Keep going! D.”

An investigation by the Information Commissioner’s Office has established that Zahawi did not tell officials about the messages following a freedom of information request from The Times. When civil servants in his private office asked if “he had any messages on his private mobile phone from David Cameron”, Zahawi replied “that he did not,” the inquiry found.

When the existence of the messages later emerged, officials returned to question Zahawi again. He then admitted that he had messaged Cameron but that the texts had been deleted.

“It is our understanding that Mr Zahawi does not know how the WhatsApp messages from Mr Cameron came to be deleted from his mobile phone,” the inquiry found.

Zahawi was approached for comment.

Revealed: Nadhim Zahawi’s legal threat to The Independent to stop tax revelations

This government will have integrity, professionalism and accountability at every level. – Rishi Sunak

The Conservative Party chairman Nadhim Zahawi tried to stop The Independent exposing that he was being investigated over his tax affairs by threatening to sue if we published.

Simon Walters www.independent.co.uk 

Mr Zahawi, who was chancellor at the time, repeatedly said he had paid “all due taxes” and would take legal action if we reported that he had been investigated.

The Independent ignored his threats and published two reports, detailing how Mr Zahawi had faced inquiries from the Serious Fraud Office, the National Crime Agency and HMRC.

Mr Zahawi did not sue or complain to this newspaper – and has now reportedly paid a penalty of more than £1m to HMRC in a settlement worth almost £5m in total.

In an extraordinary exchange before The Independent broke the story that he was being investigated last July, Mr Zahawi repeatedly threatened legal action:

• When asked about the NCA inquiry, he responded: “One hundred per cent I will take legal action.”

• When questioned about the HMRC probe, he responded: “I will take legal action.”

• When pressed for an answer, he responded: “I have responded to you. I repeat I will take legal action.”

The Independent first reported that Inland Revenue experts were investigating Mr Zahawi’s tax affairs on 6 July after a secret inquiry by the NCA in 2020.

That inquiry was codenamed “Operation Catalufa” – after a species of ray-finned fish, orange in colour found in deep waters in the Pacific known as Popeye Catalufa. The NCA inquiry was said to involve its International Corruption Unit.

Whitehall officials were told Mr Zahawi had not been informed because investigators were “trawling for information”. The NCA inquiry did not lead to action against Mr Zahawi.

On 9 July, The Independent reported officers from the Serious Fraud Office had investigated his financial affairs. The investigation had been passed to HMRC – controlled by the Treasury for which Mr Zahawi, as chancellor, was responsible. A Whitehall source said the tax investigation was “unresolved” at that time.

Then-prime minister Boris Johnson and home secretary Priti Patel and the Cabinet Office had all been informed.

Since the recent report that Mr Zahawi has agreed to pay millions to HMRC, he has been in hiding and refused to answer questions about the matter.

Last July, when we published our two stories, The Independent asked Mr Zahawi detailed questions.

Tory leadership contender Nadhim Zahawi claims tax investigation ‘a smear campaign’

In view of his refusal to respond following the recent reports, and amid growing pressure on him to do so from Labour and others, The Independent has decided to publish in full its correspondence with Mr Zahawi before our report on 9 July.

Asked now by The Independent to explain why he had said he would take legal action before our reports last July, Mr Zahawi did not respond.

Read the full exchange below:

6 July

The Independent:

Mr Zahawi, we have had it confirmed that your finances were investigated by NCA going back to 2019 (and are informed) they raised this matter with senior Whitehall figures.

Can you respond?

Can you give details?

Did you inform PM and Treasury of this when you accepted the job of chancellor?

Does this affect your ability to do your new job as chancellor?

Can you give assurances that you have paid all due UK taxes and obeyed all financial laws and regulations?

Nadhim Zahawi:

There was no such investigation by NCA. I have paid all due taxes and obeyed all financial laws and regulations.

The Independent:

We have spoken to a senior source who was approached by the NCA about it formally in 2019.

Nadhim Zahawi:

I would know if the NCA had investigated me. Right?

The Independent:

Are you adamant that the NCA never told you? Our source has a very clear memory of being approached by them formally and told they were looking at your finances.

Nadhim Zahawi:

One hundred per cent I will take legal action. I can confirm that the NCA never approached me/told me anything ever in my career.

The Independent:

We have spoken to someone who was involved in the matter. There definitely was an NCA inquiry.

We are reliably informed it was the International Corruption Unit of the NCA (and it) started in 2020. SFO also involved. (We understand that) Whitehall figures were informed at the time (and that) Boris Johnson was aware.

Was it raised with you by him or anyone else when he appointed you chancellor? Has it ever been raised with you?

No reply

7 July

The Independent:

Have you been informed since taking over as chancellor that NCA and HMRC have been investigating your tax affairs?

You said yesterday you did not know about this. Are you certain?

Are you aware that Boris Johnson, Priti Patel and Cab Office were briefed on this in 2020?

How can a chancellor take charge of tax when he has been investigated for possible tax avoidance? We believe the investigation is still live.

Can you respond?

No reply

8 July

The Independent:

We plan to (publish) a story stating that the NCA SFO and HMRC have all been involved in investigating your finances/taxes since 2020. And that they briefed No 10, Cab Off and Home Off on this. We have had this information confirmed.

Can you reply to the following?

Has the HMRC now informed you of this?

Doesn’t it present a conflict of interest?

Will you make your tax declarations public?

Nadhim Zahawi:

I will take legal action.

The Independent:

We have asked you straightforward questions based on reliable information on the grounds of a clear public interest.

Can you respond please?

Nadhim Zahawi:

I have responded to you. I repeat I will take legal action.

The Independent:

It is normal practice to ask a politician for a response to serious questions in the public interest so it can be weighed up prior to publication. It is reasonable to expect a considered reply.

We have also established that HMRC inquiry into your tax affairs was carried out by their tax fraud investigators and that the investigation is unresolved.

No reply