The Ukip leader took aim at Jeremy Corbyn’s party stating the party’s continued support for “open door immigration and crude multiculturalism” had undermined “social solidarity”.
Mr Nuttall confirmed he will stand in the Stoke Central by-election after Labour’s Tristram Hunt resigned to become director of London's V&A museum.
Explaining his decision to run, Mr Nuttall told BBC Radio Stoke: “I said I would lead from the front and thats what I’m doing, its the first real test of my leadership.
“I’m confident we will connect with the people of Stoke-On-Trent as we have done before.
“At the General Election we finished second, 5,000 votes behind Labour and I think we can overturn that 5,000 majority.
“I’ve got far more in common with the people of Stoke than the past two Labour MPs who were public school boys from down south.
“We will replace Labour as a patriotic voice of working people.”
Taking a swipe at Mr Corbyn, the Ukip leader accused the Labour leadership of hating the idea of English national identity.
Ukip's Paul Nuttall took aim at Jeremy Corbyn as he prepares for the Stoke by-election
Writing in the Sunday Telegraph Mr Nutall said: “Quite simply, Labour, especially the Labour of Corbyn and Abbott and Thornberry, has betrayed the English working class.”
Hoping to capitalise on Eurosceptic voters, the 40-year-old declared “Stoke is the Brexit capital of the country” after 65.7 per cent of Stoke voters backed leaving the EU in the June referendum.
He sought to exploit Labour divisions over the vote to trigger Article 50 of the EU treaties to start the exit process and accused Mr Corbyn's party of trying to "water down Brexit".
"If I am elected as your MP, it will send a signal to all those who are trying to put spanners in the works that their jobs are on the line," he told local party activists.
"In particular those Labour MPs who represent working-class communities which voted Leave and now want to water down Brexit.
"They will be put on notice that if they seek to frustrate the will of the people they may as well be asking for their P45s in the post."
Mr Nuttall, an MEP for Merseyside since 2009, was elected leader of Ukip in November last year.
Losing the seat, which Labour has held since 1950 when it had a vote share of 66 per cent, would be a bitter blow to Mr Corbyn.
The seat was one of Labour's safest in 1997 but its majority has since fallen to 17 per cent, with Ukip surging by 18 points to take second place in 2015.
The by-election will be held on February 23 alongside a separate poll in the Cumbrian seat of Copeland, triggered by the resignation of another leading Labour moderate, Jamie Reed.
Shadow chancellor John McDonnell has denied Labour is preparing to lose a pair of crunch by-elections next month, but insisted the results cannot be judged on past performance.
In a sign of the battle lines likely to be drawn in the by-election, Labour, which will choose a candidate on Wednesday, highlighted several previous statements from Mr Nuttall in which he backed privatisation and a market-driven approach in the NHS.
Mr Nuttall sought to pre-empt the party's attacks on Ukip by insisting he stands for an NHS free at the point of use, vowing to take on so-called "health tourism" and fight to slash the foreign aid budget to fund the health service.
Speaking on ITV's Peston on Sunday, Mr Nuttall said that Ukip would never run on a platform of privatising the NHS.
The Ukip leader added he believed the party would come "very close" to winning in Stoke, as it prepared to embark on its most professional election campaign ever.
He said: "We now have a Labour party that I feel, and many working class people feel, has stopped representing not only their grassroot members, but also their voters.
"You have a Labour party which is more at home talking about the issues that swirl around the Islington dinner party, such as Palestine, climate change and fair trade, and not really focusing on the issues that matter to working class people."
On a visit to Stoke, shadow health secretary Jonathan Ashworth said: "People in Stoke won't be fooled by Merseyside MEP Paul Nuttall.
"He's an ex-Tory wannabe politician who wants to privatise the NHS.
"He even went on the TV and specifically talked of privatising health services in Stoke-On-Trent."
Mr Ashworth added: "The Labour Party founded the NHS and will defend it against those who want to break it up, sell it off and charge people for operations.
"You can't trust the Tories or Ukip to stand up for Stoke."