Lord Hayward said the Tory Party chairman said Nadhim Zahawi should think about 'standing aside' while parliament's ethics watchdog investigates his tax affairs.
Rishi Sunak said there are"questions that need answering" but has come under criticism for resisting calls to sack him.
He said that the issues Mr Sunak is facing at the moment, including Mr Zahawi's tax affairs, are working in tandem with the ongoing strikes to"flatline" the Conservative Party's popularity.
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