Boris Johnson replaces Rishi Sunak with Nadhim Zahawi as he attempts dramatic fightback

‘Buccaneering’ Nadhim Zahawi replaced Rishi Sunak as Chancellor last night as Boris Johnson attempted a dramatic fightback.

The appointment will raise hopes among Tory backbenchers that the former education secretary has been put on a mission to cut taxes to lessen the impact of the cost of living crisis on households.

A Whitehall source said the self-made man was the ‘adventurous and buccaneering Chancellor Britain needs’.

The Prime Minister was reported as having told a group of 80 loyal Tory MPs last night: ‘I know you’re all avidly in favour of tax cuts and tonight’s events might make that a bit easier to deliver.’

Nadhim Zahawi (pictured) replaced Rishi Sunak as Chancellor after his resignation. He was promoted despite being one of the few Cabinet ministers to remain silent yesterday evening over whether he backed the PM

Conservative backbenchers have been calling for cuts to income tax, national insurance and VAT on fuel, but Mr Sunak (pictured) had resisted such moves. He has since resigned 

Mr Johnson also brought in Steve Barclay – his former chief of staff at No10 – to replace Sajid Javid as Health Secretary.

The source said: ‘God made him for Health.’

The mini-reshuffle also saw universities minister Michelle Donelan promoted to the Cabinet to take over Mr Zahawi’s old job as Education Secretary.

There had been rumours that the PM was considering moving Foreign Secretary Liz Truss to the Treasury.

But the Whitehall source said she was doing a ‘fabulous job’ and was too valuable to move because of the row over the Northern Ireland Protocol and the war in Ukraine.

Last night, Defence Secretary Ben Wallace led the Cabinet’s rearguard action, tweeting: To be clear, I am going on Thursday to see brave Ukrainian men and women training to fight for their lives and their country. I won’t be indulging in political parlour games nor will I be resigning.’

Mr Zahawi – who won plaudits as minister for Covid vaccine deployment – was promoted despite being one of the few Cabinet ministers to remain silent yesterday evening over whether he backed the PM. There was speculation that he was involved in a stand-off before securing his new job, which Number 10 denied.

The new ministers were seen walking into Downing Street yesterday evening before their appointments were officially announced.

Nadine Dorries, the Culture Secretary, was also seen arriving for a meeting with Mr Johnson in Number 10 – but no new role for her was announced.

Mr Zahawi did not answer when asked by press outside Number 10 whether he was ‘standing by the Prime Minister’. The new Chancellor will face huge pressure to come up with a way to cut taxes to help families suffering from the cost of living crisis.

Boris Johnson also brought in Steve Barclay (pictured) – his former chief of staff at No10 – to replace Sajid Javid as Health Secretary

No10 has been urging the Treasury to reverse planned increases to corporation tax to boost the economy.

Conservative backbenchers are also calling for cuts to income tax, national insurance and VAT on fuel.

Mr Sunak had resisted such moves, arguing that cutting taxes now would fuel inflation – which already stands at 9.1 per cent – even more.

But Mr Zahawi may find himself under pressure to act soon on taxes to shore up the Prime Minister’s position.

Born in Iraq, 55-year-old Mr Zahawi co-founded the polling firm YouGov and has been the Conservative MP for Stratford-upon-Avon since 2010.

He came to prominence after his appointment in November 2020 as minister for Covid vaccine deployment.

His time in that role was viewed as a huge success, and last September he was promoted to Education Secretary, replacing Gavin Williamson.

Mr Barclay’s promotion comes amid rumours that he had been trying to find a way out of his previous position as Number 10 chief of staff.

A source said at the weekend that he had been ‘looking for an exit route’ to ensure he did not fall along with Mr Johnson.

Mr Barclay previously was a health minister under Theresa May, before being promoted to Brexit Secretary and Chief Secretary to the Treasury.