Nadhim Zahawi insists cutting taxes 'is not a fairy tale' as he hits Rishi Sunak

Chancellor Nadhim Zahawi insisted the tax cut 'is not a fairy tale' in a swipe at his leadership rival Rishi Sunak as he presented his case to Tory members.

The remarks by Mr Zahawi - appointed Chancellor after Mr Sunak resigned last week - came after he announced his intention to reverse a planned corporate tax hike and reduce VAT on energy bills.

In a campaign video on Tuesday, the Conservative leadership hopeful said, “We need to reduce the tax burden. I think cutting taxes is not a fairy tale, but rather a crucial step in tackling the cost of living crisis."