FORMER Chancellor Nadhim Zahawi should have to step aside as Conservative Party chairman while an ethics investigation into his tax affairs takes place, Caroline Nokes has said.

The Romsey and Southampton North MP broke ranks to call for Mr Zahawi to “temporarily recuse himself” from his party and Cabinet role until a probe into his conduct is over.

Caroline Nokes, chairwoman of the Commons Women and Equalities Committee, told BBC Breakfast Mr Zahawi should “stand aside until this matter is all cleared up”.

She said: "I think Nadhim should stand aside until this matter is all cleared up.

"I think the longer it drags on, the worse it gets for him so I hope the investigation is swift.

"But actually I think for his own sake he should allow there to be some space between him being a Government minister and this sort of investigation."

Home Office minister Chris Philp said Mr Zahawi should be treated as “innocent until proven guilty” and it is “reasonable” for him to continue as party chairman.

READ MORE: Caroline Nokes MP questions Suella Braverman's return to cabinet

Announcing the ethics probe into Mr Zahawi on Monday, Prime Minister Rishi Sunak said it is “longstanding practice” for ministers being investigated to remain in post.

Mr Zahawi is subject to an inquiry by the new independent adviser on ministers’ interests, Sir Laurie Magnus, into declarations about his tax affairs.

He resolved a multimillion-pound tax dispute with HMRC by paying a penalty — reportedly around 30% of a £5 million settlement — while serving as chancellor under former prime minister Boris Johnson.

After Mr Sunak entered Downing Street in October, he appointed Mr Zahawi Conservative Party chairman and minister without portfolio, allowing him to attend Cabinet.

Policing minister Mr Philp said it is his understanding that Mr Sunak was told there were “no outstanding issues” in relation to Mr Zahawi’s tax affairs when appointing him to the roles in the autumn.

Mr Philp, asked on BBC Breakfast about Ms Nokes’s call for Mr Zahawi to step aside during the investigation, said: “I don’t take that view.”

He added: “We do have a principle, don’t we, in this country… innocent until proven guilty. That applies to a whole range of different circumstances.

“The investigation has been launched by the Prime Minister; that is the right thing to do.

“It will get to the bottom of this and then the Prime Minister will make his decision.

“But I don’t think it is fair to jump to any conclusions before the investigation has concluded.”

Sir Laurie is expected to focus on Mr Zahawi’s ministerial declarations as part of his first probe since being appointed.

But the investigation could extend to his prior tax arrangement and whether he lied to the media.

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