What did the new chancellor agree with the PM when appointed last night?
Zahawi says his first job is to “rebuild the economy” and help people in the “global battle against inflation”.
“I want to look at what more I can do to return to growth. The first thing we’ve got to do is make sure we’re really careful, whether that’s public sector pay, that we don’t deepen inflation.”
He’s then asked about the possibility of raising corporation tax. Zahawi responds that he will “look at everything” but wants to make sure the UK is as competitive as possible when trying to entice businesses to invest in the country.
The new chancellor is on Sky News. First up, he’s asked why he took a job from a man described by many as a liar.
“You don’t go into this job to have an easy life,” says Nadhim Zahawi, who adds that it would have been easier to walk away than to take this position.
He says there are some “big challenges facing us” and he wants to help solve them.
Pressed on the claim he threatened to resign if he was not appointed chancellor, Zahawi denies that was the case.
“This is a team game,” he says.
Will he run for leader if a vacancy appears?
“There is no vacancy,” he responds.
The following people resigned from their posts last night:
Rishi Sunak, chancellor
Sajid Javid, health secretary
Bim Afolami, Conservative vice-chair
Alex Chalk, solicitor general
Jonathan Gullis, parliamentary private secretary
Saqib Bhatti, parliamentary private secretary
Nicola Richards, parliamentary private secretary
Virginia Crosbie, parliamentary private secretary
Andrew Murrison, trade envoy
Theo Clarke, trade envoy
The new cabinet appointments are as follows:
Nadhim Zahawi, chancellor
Steve Barclay, health secretary
Michelle Donelan, education secretary
At 6pm yesterday, Boris Johnson gave an interview he hoped would stem some of the criticism over his handling of the Chris Pincher allegations. Within two minutes, Sajid Javid had resigned as health secretary. Then Rishi Sunak quit as chancellor.
In total, 10 Tories handed in resignation letters for various of government posts on Tuesday evening, leaving the prime minister fighting for his political future.
Johnson attempted to recover his authority by swiftly appointing Nadhim Zahawi as his chancellor and Steve Barclay as health secretary. But the credibility of the move was undermined as reports emerged that Zahawi had threatened to quit unless he got the job instead of the foreign secretary, Liz Truss.
The resignations of Javid and Sunak, both considered potential future leadership contenders, come at a moment of significant danger for the prime minister. Elections to the 1922 Committee executive next week are expected to strengthen the hand of rebels hoping to call another vote of no confidence.
There is growing expectation among MPs that there will be moves to change the rules to allow a second confidence vote before the summer recess begins on 21 July, a feat previously seen as administratively impossible.
At midday today, Johnson will face the Commons for prime minister’s questions – we’ll bring you live updates from that and all the day’s other political developments as they happen.