‘Recipe for disaster’: New chancellor Nadhim Zahawi’s plan to cut taxes will make inflation worse, experts warn

Zahawi cannot deliver £21bn tax-cut plan while balancing the books and containing rampant price rises, say economists

Nadhim Zahawi has left his education secretary role to become chancellor (PA Wire)

Tax cuts planned by the new chancellor Nadhim Zahawi are a “recipe for disaster” that risk stoking more price rises and pushing inflation even higher while failing to boost the UK’s crumbling economy, experts have warned.

Mr Zahawi, who was thrust into the second-most senior role in government last night after Rishi Sunak’s shock resignation, signalled his commitment to slash taxes on workers’ wages and company profits while also being “fiscally responsible” and reviving the economy.

A flurry of television interviews on Wednesday morning has been mockingly dubbed “the most expensive media round in history” after the chancellor-backed tax cuts which experts say would cost an estimated £21bn a year.