Labour has called for South Warwickshire MP Nadhim Zahawi to be sacked as Conservative Party chairman as questions continue to be asked about his tax payments.

Mr Zahawi position has been described as "untenable" by Labour deputy leader Angela Rayner following a series of newspaper reports that the Stratford-upon-Avon MP tried to avoid tax and has now had to pay it back.

Last weekend the Sun on Sunday reported that the former Chancellor was to pay back a seven-figure sum to HMRC after questions were raised about whether he used an offshore company to hold shares in YouGov.

A stake worth more than £20 million was reportedly held in his family trust, Gibraltar-registered Balshore Investments, until it was sold in 2018.

The former Chancellor, who also co-founded YouGov, has previously denied benefiting from the trust.

But now, according to The Guardian, he has had to pay back the tax he owed plus 30 per cent penalty totalling £4.8 million, which has led to renewed calls for Rishi Sunak to remove him as party chairman.

"Rishi Sunak promised a government of integrity, professionalism, and accountability but instead he's propping up a motley crew of scandal-ridden ministers," Ms Rainer said.

"Nadhim Zahawi's story doesn't add up.

"The position of the man who was until recently in charge of the UK's tax system and who this prime minister appointed Conservative Party Chair is now untenable.

"It's time for Rishi Sunak to put his money where his mouth is and dismiss Nadhim Zahawi from his cabinet."

Having been pressed by the Guardian, Mr Zahawi's spokesperson did not deny one had been paid.

But on the figure quoted, the spokesperson said: "Nadhim Zahawi does not recognise this amount … as he has previously stated, his taxes are properly declared and paid in the UK."

An earlier statement from Mr Zahawi's office said: "As he has previously stated, his taxes are properly declared and paid in the UK."

A spokesperson for HMRC said: "We cannot comment on identifiable taxpayers."

The Stratford MP was one of the early candidates to be knocked out of the running to become prime minister last summer, having joined the race of eight Tories to replace Boris Johnson.

The 55-year-old promised at the time to publish his tax returns if he won the leadership contest

And Mr Zahawi been tipped to become the new PM by leader of Warwick District Council Cllr Andrew Day who said at the time the Stratford MP was an "exceptionally capable man".

The former health secretary was also left embarrassed last October when an article he wrote backing Mr Johnson to return as PM had to be deleted within minutes as the former party leader dropped out of the leadership contest.

Mr Zahawi's article 'Get ready for Boris 2.0, the man who will make the Tories and Britain great again' described the former PM as a "reinvigorated man" and said he "retains his razor-sharp wit, ability to inspire and common touch", adding "he has also evolved"