In his first interview since the start of the race, the new chancellor exclusively told Sky News how the boy from Baghdad has nothing to hide with his tax affairs – despite not being sure how rich he is. how important faith is to him – despite his involvement in ousting the prime minister – and how he adores Maggie Thatcher. Mr Zahawi also tackled the scandal over the taxpayer-funded bill to heat a stable for his horses – “an embarrassing but honest mistake” – and attending a notorious all-male event where hostesses are treated to be petted by some of the attendees. Truss vows to ‘cut taxes from day one’ as surprise Foreign Secretary announces leadership bid – Politics Live The event made him feel “incredibly uncomfortable”. Chancellor for just over a week, Mr Zahawi was apparently burning the midnight oil in his underwear. He told us how a 20% cut in the operating costs of every government agency would provide enough fiscal strength to enable us to cut taxes. He is looking at reducing corporate tax. income tax and National Insurance. He has also promised to honor a 9% pay rise for junior teachers, but will not make a similar commitment for other public sector workers because we are facing a “national emergency”. Turning to his own finances, he sees the chancellor sitting a little straighter in his rather expensive chair in his drawing room, in the suite where we’re filming at the Intercontinental Hotel overlooking Hyde Park. What was your reaction when you saw reports that your tax affairs had been investigated by the Serious Fraud Office, the National Crime Agency and HMRC? “I was clearly being smeared. I was told that the Serious Fraud Office, National Crime Agency, HMRC were looking at me. “I’m not aware of that. I’ve always declared my taxes – I’ve paid my taxes in the UK. I’ll answer any questions HMRC have about me. “But I will go further. I will commit today that if I am Prime Minister the right thing to do is to publish my accounts annually. That is the right thing to do because we need to take this issue off the table.” Retrospective? “I will publish my accounts every year, that’s the right thing to do.” Retrospective? “I will look at what the options are in terms of looking back and publishing annually.” In the last decade; “If I’m prime minister I’ll publish them from now on. I don’t think it’s right to be retrospective. I was in business before, I got out of it, of course, now I’m in politics.” Is it true that your family benefits from an offshore trust? “My family doesn’t benefit from an offshore – I don’t benefit from an offshore trust, neither does my wife – we don’t benefit from it at all. My mother and father live overseas – that’s their job. They don’t live in the UK ». Have you ever had non-dom status? “I’ve never had a non-dom status.” Have you ever used offshore companies to avoid taxes? “I have never used an offshore company to avoid taxes.” Does he have your family? “My family – my wife has never been a foreigner, never used offshore status to avoid taxes.” Have you told us everything about your professional affairs that could possibly affect your future ability to be a PM? “Yes I have.” Have you ever used offshore companies or service companies based in tax havens to buy property or real estate in the UK? “NO I have not”. Have you fully declared all your properties in the register of MPs’ interests? “Yes we have.” Did you pay the required taxes, including stamp duty, when purchasing these properties? “Yes.” Press reports claim that, according to Companies House records, you once held £20m of YouGov shares in a Gibraltar-based company, Balford Investments. What is the reason for using offshore financial structures like this if not for the purpose of tax avoidance? “I was not a beneficiary of the Balshore investment that holds these shares.” Who was it? “My family. It’s a matter of public record – my father.” But why would you do that if it wasn’t for the purpose of avoiding tax? “She lives abroad, she doesn’t live in the UK.” Eventually we moved on, but not before I asked Mr. Zahawi, “How rich are you?” He hesitates for a moment before offering a friendly reply. Avoiding the company’s numbers gives the impression that maybe he’s so rich he just doesn’t know the answer. That could be a problem for the would-be prime minister who wants to be the man to lead the country out of the cost-of-living crisis. To be fair, he is not alone in his abundant wealth. Several of the runners and riders are multi-millionaires, including Rishi Sunak, Sajid Javid, Jeremy Hunt and Grant Shapps. Use Chrome browser for more accessible video player 18:45 resignation. What happens next? There are other uncomfortable questions to answer, including in 2013 when he claimed costs to heat stables for his horses at the Warwickshire estate he owns with his wife. “Genuine mistake. I don’t really understand [his stable heating and personal heating] log in with only one account.” “It was a complete mistake, a mistake, and of course I apologized and paid for it.” Asked if he was ashamed, Mr Zahawi said: “Of course. Deeply embarrassing. But it was a genuine mistake. It’s much better to admit and show than to do anything else.” Back in 2018, he attended an all-male event at the Dorchester Hotel – a stone’s throw from where we’re conducting this interview. Use Chrome browser for more accessible video player 0:42 ‘I’m rich’ because of the ‘British dream’ Read more: Who are the frontrunners to be next prime minister? Tax plans could decide who leads Conservatives Zahawi says he is ‘clearly being abused’ over tax claims The hostesses claimed that some of the attendees were fondled. The ensuing scandal led to the dissolution of the fundraising charity club. Then the Minister of Children, Mr Zahawi says he arrived late and left early after he felt uncomfortable. “Young ladies, hostesses, came to every table, which made me incredibly uncomfortable, so I left dinner and went home. “I think on reflection, including the charity itself, these men-only dinners are wrong. I think actually one of the things I’m passionate about is that we treat people right, including people who are there to serve us, whether in government or elsewhere.” Asked what he would tell his sons if they were thinking of attending such an event, Mr. Zahawi says firmly: “Don’t go.” Use Chrome browser for more accessible video player 5:20 The fall of Boris Johnson I also asked him about faith. He has been criticized for accepting a job as chancellor from Boris Johnson and within 36 hours sacking the man who had put him in the position. He said: “I was loyal to the end. In fact, when I and a lot of other colleagues went to see him on Wednesday night, I sat down with him and said, ‘I’ve known you for 30 years – they’re going to try and humiliate you and I can’t bear to see you humiliated. ». “I want to explain to you what I think is going to happen and I hope you will think about it and do this with dignity.” By the end of the interview, Mr Zahawi had answered all my questions, refusing to dwell on the embarrassing moments and loudly defending his plans for the future. In the coming weeks we will see if the boy from Baghdad who arrived in the UK unable to speak the language has done enough to win over both his colleagues and Conservative members across the country to take what he sees as the ultimate prize – the prime minister.
