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Deputy Labour leader Angela Rayner has called for Conservative Party chairman Nadhim Zahawi to resign from government, calling his position "untenable".
It has been reported that the former chancellor paid a penalty to HMRC as part of a multi-million pound tax settlement.
The ex-chancellor has been under pressure over claims he tried to avoid tax and has now had to pay it back.
The BBC has approached Mr Zahawi for comment on the latest allegations.