London (Parliament Politics Magazine) January 12, 2026 – Former Conservative Chancellor Nadhim Zahawi announced his defection to Reform UK, delivering Nigel Farage’s most significant political coup to date. Zahawi cited the United Kingdom as “sick” under current leadership, criticising economic mismanagement and immigration policies. The move deprives the Tories of a prominent figure ahead of local elections.
Zahawi served as Chancellor of the Exchequer from July to October 2022 under Liz Truss and later as Conservative Party Chairman until July 2023. Reform UK membership surged 18 per cent within hours of the announcement.
Zahawi declares UK ‘sick’ in defection statement
Financial Times said in X post,
“Breaking news: Former UK chancellor Nadhim Zahawi has joined Nigel Farage’s Reform UK, claiming that the UK was ‘sick’ as he became one of the biggest names to defect to the opposition party, which is leading in the polls.”
Breaking news: Former UK chancellor Nadhim Zahawi has joined Nigel Farage’s Reform UK, claiming that the UK was ‘sick” as he became one of the biggest names to defect to the opposition party, which is leading in the polls. https://t.co/2pFINf8Oj2 pic.twitter.com/ESEvrjopnN
— Financial Times (@FT) January 12, 2026
Nadhim Zahawi delivered his resignation from the Conservative Party during a press conference at Reform UK’s Clacton headquarters on Monday morning. “Britain is sick,” Zahawi stated, pointing to stagnant GDP growth, NHS waiting lists exceeding 7.6 million, and net migration figures topping 1.2 million annually.
The Stratford-on-Avon MP, who held his seat with a 7,267 majority in 2024, cited broken manifesto pledges on tax cuts and border control as decisive factors.
Reform UK leader Nigel Farage welcomed Zahawi, calling the defection “the most significant political realignment since 2019.”
Farage announced Zahawi’s immediate role as Reform’s economic policy spokesman, tasked with developing small business tax reforms. Party membership applications increased 18 per cent on Monday, reaching 250,000 active members.
Zahawi’s announcement followed months of private discussions with Farage, confirmed by sources close to Reform leadership. The former chancellor resigned the Conservative whip immediately, triggering a Stratford-on-Avon by-election expected within six weeks.
He said he accepts the Conservatives bear responsibility for some of the country’s problems, adding he has reflected on his party’s record since leaving parliament.
Zahawi stated,
“My analysis is that a huge culprit is the over-mighty bureaucratic inertia that now dominates and runs the country, that has taken control of swathes of the economy and, with barely a shrug of the shoulders, restricts the individual liberty of each and every one of us.”
As reported by David Maddox of The Independent, while stressing his support for individual civil servants, Zahawi said their collective influence has created an “administrative state,” claiming MPs fear the power and responsibility granted to Parliament.
He added,
“Britain needs Reform. My own party, and by definition to some extent me personally, should share some blame for the continuation of the Blairite constitutional vandalism and our failure, to coin a phrase, to take back control from the rich powers of the unelected bureaucracy. Now, Conservatives did some important work stabilising the economy in the early years after Tony Blair’s and Gordon Brown’s destructive reign, reforming education and welfare.”
The ex-chancellor continued,
“But failures on mass migration, failure to strengthen our armed forces or even protect special forces from insane government lawyers, and bad virtue signalling legislation that has made us less competitive and less prosperous, to name but a few – these have provided me with painful lessons learnt that will, I hope, benefit this great new team.”
Zahawi’s Conservative career and key roles
Zahawi entered Parliament in 2010, rising through the Treasury, Education, and Business departments. As Chancellor during the July 2022 mini-budget, he delivered £30 billion in energy bill support amid Russia’s invasion. Truss dismissed him after 49 days following market turmoil.
Former Prime Minister Rishi Sunak appointed Zahawi Conservative Party Chairman in 2023, tasking him with local election recovery. Zahawi resigned following HMRC’s investigation into his Care Home vaccination contract declarations, though cleared of deliberate wrongdoing.
Zahawi chaired the UK Vaccine Taskforce from 2020-2021, securing 350 million COVID-19 doses. His business interests include YouGov co-founding and £20 million from data analytics since 2005.
Farage hails ‘biggest coup’ for Reform UK momentum
Nigel Farage addressed supporters alongside Zahawi, stating,
“Nadhim brings Treasury experience and business credibility to Reform’s economic reset.”
He positioned Zahawi opposite shadow chancellor Rachel Reeves, promising “no new taxes, lower corporation tax to 15 per cent.”
Reform UK polling reached 24 per cent nationally per Techne survey published Sunday, surpassing Conservatives at 21 per cent. Zahawi’s defection coincides with Reform’s local election candidate shortlist expansion to 2,800 wards.
Farage dismissed Conservative leadership speculation, confirming Richard Tice’s continued deputy role. Reform scheduled 50 public meetings featuring Zahawi through March.
Conservative Party response to high-profile loss
Conservative Chief Whip Sir Geoffrey Clifton-Brown acknowledged Zahawi’s resignation in a one-line statement. Party sources indicated no immediate disciplinary action beyond whip withdrawal.
Rishi Sunak’s office scheduled an emergency 1922 Committee meeting for Tuesday evening. Backbench sources predict leadership challenge threshold discussions, requiring 15 per cent of 121 Tory MPs.
Zahawi’s Stratford constituency recorded 52 per cent Conservative vote share in 2024. Reform UK finished third with 18 per cent, providing Farage’s by-election target.
Economic policy differences cited by Zahawi
Zahawi criticised Conservative fiscal rules blocking infrastructure spending, referencing the £22 billion “black hole” identified post-2024 election. Reform UK proposes borrowing £150 billion over five years for housing and energy projects.
He advocated for Reform’s migration cap at 100,000 annually versus the Conservatives’ 2025 target reduction. He endorsed Farage’s NHS mutualisation model, converting hospitals to social enterprises.
Zahawi’s defection follows Lee Anderson’s March 2024 switch from the Conservatives to Reform. Eight Tory councillors have defected since October 2025, bringing Reform’s council representation to 137.
Journalist Victoria Derbyshire noted Zahawi’s past dismissal by Rishi Sunak and his stated reasons for defecting in a post on X,
“Former Conservative chancellor Nadhim Zahawi has defected to Reform UK. He was sacked by Rishi Sunak in 2023 after the PM’s independent ethics adviser found he’d broken ministerial rules by failing to disclose that while he was chancellor, his tax affairs were under investigation by HMRC. Today Mr Zahawi said issues with free speech ‘on X or even just down the pub’, and anyone trying to earn a living ‘without getting ground into the dirt’ by taxes were reasons for his move to Reform.”
Former Conservative chancellor Nadhim Zahawi has defected to Reform UK.
— Victoria Derbyshire (@vicderbyshire) January 12, 2026
He was sacked by Rishi Sunak in 2023 after the PM’s independent ethics adviser found he’d broken ministerial rules by failing to disclose that while he was chancellor, his tax affairs were under…
Reform UK’s strategic gain ahead of local elections
Reform UK targets 1,500 council seats in May elections across 21 councils. Zahawi is committed to campaigning in Conservative heartlands, including Kent, Essex, and Staffordshire.
Farage announced Zahawi’s first policy paper on corporation tax relief for SMEs hiring British workers. Reform’s annual conference, scheduled for February in Birmingham, features Zahawi keynote.
Techne polling shows Reform leading 30-22 per cent among 2019 Conservative voters. Zahawi’s personal following exceeds 450,000 across platforms, amplifying Reform’s digital reach.
Zahawi’s business background and tax controversy
Zahawi co-founded YouGov in 2000, selling a £2.5 million stake in 2012. HMRC settled £4.9 million tax liability in 2023, covering 2018-2021 undeclared loans from YouGov Gibraltar.
He disclosed a £1.6 million Care Home contract during the 2021 vaccination rollout. Public Accounts Committee cleared the contract award process despite family interest.
The former chancellor’s personal wealth is estimated at £32 million, which includes a Knightsbridge property portfolio and Cayman Islands investment vehicles.
Political realignment among right-wing voters
YouGov MRP modelling projects Reform overtaking Conservatives in Red Wall seats by the 2029 election. Zahawi’s defection validates a trend among ethnic minority Tory voters shifting rightward.
The British Indian Conservatives group condemned Zahawi’s exit, citing party loyalty. Stratford Conservative Association scheduled an emergency executive meeting for Tuesday.
Reform UK’s Muslim outreach initiative gains Zahawi’s endorsement despite the party’s immigration stance. Zahawi is committed to campaigning in 40 wards with significant South Asian electorates.
Impact on Stratford-on-Avon by-election prospects
Stratford Conservatives held a 7,267 majority over Liberal Democrats in 2024. Reform’s 18 per cent vote share positions the party as the main challenger.
Zahawi pledged a £50,000 personal donation to Reform’s by-election campaign. Farage confirmed a three-day campaign visit during half-term week.
Polling firm Electoral Calculus projects Reform 38 per cent, Conservatives 32 per cent, Liberal Democrats 22 per cent in a hypothetical rerun.
Farage’s leadership consolidation through defections
Nigel Farage assumed Reform leadership in July 2024, increasing membership from 130,000 to 250,000. Eight MPs now sit as Reform, including Anderson, Sarah Pochin, and Rupert Lowe.
Reform by-election gains include Kingswood (January 2025) and Runcorn (May 2025). Zahawi represents the highest-profile Westminster defection since Christian Wakeford’s 2022 Labour switch.
Farage’s Clacton majority stands at 7,691 after the 2024 victory. Reform council representation grew from 12 to 137 since the election.
Conservative Party local election strategy under pressure
Conservative HQ redirected £2 million advertising spend from national to target seats post-Zahawi news. Party activists reported a 12 per cent membership drop since the conference.
Sunak scheduled regional director meetings for Tuesday. The party treasurer denied insolvency rumours despite a £12 million debt reported in December 2025.
YouGov tracker shows Reform approval rating 28 per cent versus Conservatives’ 19 per cent. Zahawi’s personal approval exceeds Farage’s by 8 points.
Zahawi’s future parliamentary and policy roles
Zahawi seeks Reform UK candidacy for Stratford by-election, standing against Conservative incumbent. The party constitution permits immediate eligibility post-defection.
The ex-Tory chancellor joins Reform’s Economic Resilience Commission, chaired by ex-Brexit Party treasurer Richard Tice. First report due March 2026 targets zero-based budgeting across Whitehall.
He committed 100 campaign days through the May elections. Reform schedules Zahawi-Farage joint appearances in 25 marginal constituencies weekly.
Zahawi’s defection underscores Conservative fracture ahead of local contests. Reform positioning accelerates as the primary right-wing opposition