Nadhim Zahawi defected to Reform UK on Monday after being denied a peerage by the Conservative Party, according to Tory sources. The former chancellor had asked Kemi Badenoch’s team for a seat in the House of Lords but was rebuffed because he was sacked as Conservative party chair in 2023 over his tax affairs.
Zahawi, who served as chancellor under Boris Johnson, was forced to step down as party chair after breaching the ministerial code by failing to declare an HM Revenue and Customs investigation. A Tory source said: “Nadhim asked for a peerage several times. Given he was sacked for his dodgy tax affairs, this was never going to happen.”
At a press conference with Nigel Farage, Zahawi claimed Britain was on the brink of “civil unrest” and only a Reform government could prevent it. He criticised high taxes, the “big state”, and threats to free speech, but faced questions about his past criticism of Farage. Zahawi defended the Reform leader, saying he would not sit beside him if he believed he had a “racist bone in his body”.
A 2015 tweet resurfaced in which Zahawi called Farage’s comments “offensive and racist”. Zahawi said his views had evolved, adding: “If I thought this man … had an issue with people of my colour … I wouldn’t be sitting next to him.” Farage claimed he had been “wilfully misrepresented” in the original interview.
Zahawi let his Tory membership lapse in December and joined Reform as a “foot soldier” with no specific role. The defection was brokered by Nick Candy, Reform’s treasurer and a personal friend. The Conservatives noted that Zahawi approached them, not the other way round, and that his defection came after he was omitted from Badenoch’s latest political honours list.
