Nadhim Zahawi insists cutting taxes ‘isn’t a fairytale’ in swipe at Rishi Sunak

Sunak has called for ‘honesty and responsibility, not fairytales.”

The chancellor, Nadhim Zahawi (PA)

Chancellor Nadhim Zahawi has insisted cutting taxes “isn’t a fairytale” in a swipe at his leadership rival Rishi Sunak, as he set out his pitch to the Conservative membership.

The remarks from Mr Zahawi — appointed chancellor after Mr Sunak’s resignation last week — came after he set out plans to reverse a planned hike in corporation tax and slash VAT from energy bills.

In a campaign video on Tuesday, the Tory leadership hopeful said: “We need to reduce the burden of tax. I believe cutting taxes isn’t a fairytale, but rather a critical step to tackle the cost-of-living crisis”.