RIVALS CLASH IN TV DEBATE
Showdown in the studio sees battle for leadership hot up as Sunak aims ‘fairytale’ jibe at Truss over tackling cost of living crisis
THE Tory leadership race exploded into life last night as Liz Truss and Rishi Sunak clashed over tax in the first live television debate.
In an extraordinary showdown, the Foreign Secretary savaged the former chancellor over his hike to national insurance.
Miss Truss warned ‘you cannot tax your way to growth’ as she also criticised a corporation tax rise planned for next year. Mr Sunak told her: ‘Borrowing your way out of inflation isn’t a plan, it’s a fairytale.’
But she hit back: ‘I think it is wrong to put taxes up.’
In the 90-minute debate on Channel 4, Mr Sunak attempted to defend his record in No 11 as he attacked his rivals over their plans for tax cuts.
Stressing the need to grip inflation, he told them: ‘We cannot make it worse, inflation is the enemy that makes everyone poorer. It erodes your savings, it erodes your living standards, it means that those of you who have mortgages will see your interest rates go up higher and higher.
‘I don’t think the responsible thing to do right now is launch into some unfunded spree of borrowing and more debt, that will just make inflation worse.’
But Miss Truss insisted that reversing the national insurance rise, which was introduced in April, could be paid for by borrowing more like other countries such as US, Canada and Japan.
‘They have taken a sensible decision that at this time of a global economic crisis, just when we’re trying to help businesses grow, when we’re trying to help families, it is not the right time to put up taxes.’
Mr Sunak replied: ‘There’s no such thing as Covid debt.
‘Debt is debt and the answer to too much borrowing can’t be yet more borrowing.’
After the former chancellor accused Penny Mordaunt of making ‘double-digit billion pound promises’ on cutting VAT on fuel and increasing income tax thresholds, the trade minister hit back: ‘Two things, Rishi, that you haven’t realised – I know you know people are going to need more help this autumn, but actually people need help now and you are going to have to do something on taxation.
‘Next April we are going to be one of the most uncompetitive nations in terms of our tax competitiveness... that cannot be allowed to happen.’
Rival candidate Tom Tugendhat said: ‘I’m the only one who didn’t vote for the rise in national insurance and now it seems everybody agrees with me.’
He then revealed that during a private conversation with Mr Sunak when he was chancellor, he asked how the rise could be justified and was told it was because Boris Johnson wanted it. ‘You set up your position and I asked why on earth this was going to be necessary, you told me because the boss wanted it,’ Mr Tugendhat said.
The bruising debate also saw Miss Mordaunt accused of not telling the truth on her record on trans rights. The Tory leadership hopeful, who is now favourite at the bookies, was targeted by rivals Miss Truss and Kemi Badenoch in a pincer movement.
Asked about her time as minister for women and equalities, Miss Mordaunt insisted that she had ‘never been in favour of self-ID’, whereby a trans person could legally change their gender without, for example, a medical diagnosis.
But asked if she accepted this account, Mrs Badenoch, who resigned as equalities minister this month, responded: ‘My understanding was that [a] previous minister who had done the role had wanted self-ID and that was something that I reversed with Liz.’ Miss Mordaunt hit back: ‘That’s not correct and this will all be on record in government.’
But Mrs Badenoch insisted: ‘It is on record.’
Miss Truss, who succeeded Miss Mordaunt as minister for women and equalities, said when she ‘started in the job, there was a plan to move forward on self-ID’.
The five Tory leadership candidates turned on Mr Johnson as they all declined to say he was honest. Asked to give a yes or no answer, Mrs Badenoch said: ‘Sometimes.’ Mr Sunak replied: ‘I tried to give him the benefit of the doubt for as long as possible and ultimately I reached the conclusion that I couldn’t, and that’s why I resigned. There were a number of reasons that I resigned but trust and honesty was part of that.’
‘Billion-pound promises’ ‘Talking about the Army too much’
Asked the same question about whether the Prime Minister was an honest man, Tom Tugendhat was applauded by the audience as he replied: ‘No.’
Earlier, at an online hustings organised by the Conservative
Home website, the candidates were all asked about their own ‘greatest weakness’.
Mrs Badenoch said hers was ‘allowing my sense of humour to look like I’m flippant about issues’, while Mr Sunak said he works hard and strives for perfection. Miss Truss said she has in the past been ‘excessively over-enthusiastic’.
Mr Tugendhat, who has made his military background a central pillar of his campaign, said: ‘I know this is going to surprise you but I may talk about the Army a little too much, which is possibly a weakness.’
Miss Mordaunt said: ‘I was tempted to say Burmese cats as I have four and introducing them into No 10 might present some challenges with Larry.’
All five candidates will take part in another television debate on ITV at 7pm tomorrow, with a further showdown on Sky News on Tuesday.
The next round of voting by Tory MPs will take place on Monday, with subsequent rounds if required until there are just two candidates, who will then battle it out over the summer to win the support of Conservative members.
Their choice of the next prime minister will be announced on September 5. Boris Johnson will then formally tender his resignation to the Queen to make way for his successor the following day.