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City of London

The Tory Tax Problem May Be Britain’s, Too

Nadhim Zahawi’s “careless” error is raising pressure on Conservatives—and questions about how the UK’s wealthy are taxed.

Nadhim Zahawi outside 10 Downing Street 

Nadhim Zahawi outside 10 Downing Street 

Photographer: Hollie Adams/Bloomberg

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The big story in the UK this week centers on the fate of Conservative Party Chairman Nadhim Zahawi. His tax affairs have come under scrutiny following a report that he’d paid £4.8 million ($5.4 million) in taxes to His Majesty’s Revenue & Customs, including a 30% penalty for not paying on time in the first place. Zahawi’s excuse was that he’d been “careless,” and so far he’s been allowed to stay in his post. But pressure is mounting. 

In this week’s In the City, reporter Alex Wickham joins to assess the damage being done to the Tory party’s popularity as a result of the scandal. As Wickham puts it, the incident “feeds into the narrative that the Tories just don’t get it during a cost of living crisis.” It’s an impression that arguably goes over poorly with voters.