Katy Balls Katy Balls

How much trouble is Sunak in?

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This week Rishi Sunak will meet with his Cabinet at Chequers as he tries to focus minds in his government and party towards the next election. However, while the Prime Minister wants to focus on his five priorities – half inflation, reduce debt, grow the economy, cut waiting lists and stop the boats – a Tory sleaze row threatens to overshadow his best efforts.

Sunak is fighting fire on multiple fronts. First, his party chairman Nadhim Zahawi has had to issue a statement on his tax affairs in which he says an error that has reportedly resulted in him paying millions belatedly was ‘careless and not deliberate’. This has already led to calls from the opposition for Zahawi to go. While Zahawi isn’t exactly a key Sunak ally – he backed Truss over the summer and then Johnson in the second contest before changing tack – to lose him would create another party management problem. Having Zahawi in government sends a signal that Johnson backers have a place in the Sunak government.

Second, there are questions being asked about the position of BBC chairman Richard Sharp. The Sunday Times reports that Sharp was involved in arranging a guarantor on a loan of up to £800,000 for the then prime minister Boris Johnson. While Johnson’s spokesman says the politician did not received any financial advice from Sharp, the intervention came just weeks before the then prime minister recommended him for the role. The report has led to calls from Labour for a parliamentary investigation.

So, where does this all lead for Sunak? Ultimately both issues stem back to Johnson’s time as prime minister. The fact that Zahawi was dealing with HMRC as chancellor – following Johnson’s short-lived decision to promote him in the face of Sunak’s resignation – is striking. But Sunak can’t dismiss it all as a Johnson-specific row. Sunak knows Sharp well and made the decision to appoint Zahawi to a senior role in his government. What’s more, where Johnson was often regarded by MPs as a fairly scandal-proof politician who could ride out rows other politicians would struggle with, Sunak is seen as a more straightforward politician who is vulnerable to stories about standards. MPs backed Sunak on the basis he would bring an end to a year of Tory scandal.

This weekend’s stories are just a taste of the potential problems coming up the track for Sunak when it comes to Johnson’s legacy. As I reported last week, government aides believe Johnson could cause Sunak problems on Levelling Up, the Northern Ireland protocol and honours. Those privy to Johnson’s resignation honours list say it has over 100 names including longstanding staff who worked for Johnson throughout the various scandals such as partygate. Theresa May’s and David Cameron’s lists were in the region of 40. It could be a gift to Labour. It means that the rows dominating the news agenda this weekend could be a taste of things to come.

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