The Tory leadership race blew up last night Liz Truss and Rishi Sunak clashed over taxes in the first live TV debate.
In an extraordinary showdown, the foreign minister devastated the former chancellor on his trek to social security.
Miss Truss warned that “growth cannot be taxed” while also criticizing a corporate tax hike planned for next year. Mr. Sunak said to her, “Borrow it inflation is not a plan, it is a fairy tale.”
But she hit back: “I think it’s wrong to raise taxes.”
In the 90-minute debate on Channel 4, Mr Sunak tried to defend his record in No 11 as he attacked his rivals over their tax cut plans.
Stressing the need to get inflation under control, he told them: “We cannot make it worse, inflation is the enemy that makes everyone poorer. It erodes your savings, it erodes your standard of living, it means those of you with mortgages are going to see your interest rates go higher and higher.
The debate on Channel 4 erupted into extraordinary clashes over tax cuts, transgender rights and the cost of living
Rishi Sunak got into a heated argument with Secretary of State Liz Truss over taxes, telling her that borrowing money to make tax cuts possible is a “fairy tale”.
Meanwhile, Tom Tugendhat made his way with the audience, earning applause and laughter from the too-dead-silent crowd
“I don’t think it’s responsible right now to rush into bad debt and more debt that will only exacerbate inflation.”
But Miss Truss insisted the rollback of the Social Security hike introduced in April could be paid for by more borrowing like in other countries like the US, Canada and Japan.
“They made a sensible decision that at this time of a global economic crisis, when we’re trying to help businesses grow, when we’re trying to help families, it’s not the right time to raise taxes.”
Mr Sunak replied: “There is no such thing as Covid debt.
“Debt is debt, and the answer to borrowing too much can’t be borrowing more.”
After former Chancellor Penny accused Mordaunt of making “double-digit billion pound promises” to reduce VAT on fuel and raise income tax thresholds, the Trade Secretary hit back: “Two things, Rishi, that you have failed to realise – I know you know people are going to need more help this fall, but actually people need help now and you need to do something about taxation.
“Next April we’re going to be one of the least competitive nations in terms of our fiscal competitiveness… That can’t be allowed to happen.”
And rival candidate Tom Tugendhat revealed that when Mr Sunak was chancellor he asked how the climb could be justified and was told it was because Boris Johnson wanted him.
Miss Truss insisted the rollback of the Social Security hike introduced in April could be paid for by more borrowing like in other countries like the US, Canada and Japan
Penny Mordaunt (right) showed a confident and rather subdued performance, while Kemi Badenoch (left) performed better than many expected
“You established your position and I asked why on earth this should be necessary, you told me because the boss wanted it,” said the army veteran. A quick poll revealed that the public believed Mr Tugendhat had done best in the televised debate. A poll of 1,159 voters conducted by Opinium found that more than a third (36 percent) supported him.
About 25 per cent said Mr Sunak was the best, ahead of Miss Mordaunt and Mrs Badenoch at 12 per cent each and Miss Truss at 6 per cent.
In the grueling debate, Miss Mordaunt was also accused of not telling the truth in her trans rights file. The Tory leader, who is now a bookies favourite, was targeted in a pincer move by rivals Miss Truss and Kemi Badenoch.
When asked about her time as Minister for Women and Equality, Miss Mordaunt insisted she had “never been in favor of self-identification”, which allows a trans person to legally change their gender, for example without a medical diagnosis. When asked if she accepted that account, Ms Badenoch, who stepped down as Equality Secretary this month, replied: “That was my understanding [a] The former minister who took on that role wanted to identify himself and that was something I reversed with Liz.
Miss Mordaunt replied: “That is not correct and it will all be in the Government files.”
Iron Lizzie’s Maggie Tribute
Liz Truss made a deliberate fashion statement at last night’s Tory leadership contest debate.
With her white tie-neck blouse, the Foreign Secretary was reminiscent of Margaret Thatcher, who wore an identical outfit for her 1979 election broadcast.
Miss Truss has previously recreated iconic images of Mrs Thatcher, including being snapped in a tank in Estonia last year.
Mrs Thatcher was famously pictured in a tank in 1986 while visiting troops in West Germany.
Liz Truss wore an almost identical blouse and jacket to Margaret Thatcher in 1979
But Ms Badenoch insisted: “It’s on record.”
Miss Truss, who succeeded Miss Mordaunt as Minister for Women and Equality, said when she “took her job there was a plan to push self-identification”.
In the wide-ranging debate, the five candidates also discussed Mr Johnson. They all turned on him and refused to say he was honest. When asked for a yes or no answer, Mr Sunak replied: “I tried for as long as possible to rule for him when the doubt came up and concluded I couldn’t. There were a number of reasons why I resigned, but trust and honesty were part of it.’
To the same question as to whether the Prime Minister was an honest man, Tom Tugendhat received applause from the audience when he replied “No”. Earlier, an online poll organized by the Conservative Home website asked candidates about their own “greatest weakness”.
Ms Badenoch said she “made my sense of humor seem like I was flippant about problems”, while Mr Sunak said he works hard and strives for perfection. Miss Truss said she had been “extremely overzealous” in the past.
Mr Tugendhat, who has made his military background a central pillar of his campaign, said: “I know this will surprise you, but I may be talking a little too much about the army, which is possibly a weakness.”
Miss Mordaunt said: “I was tempted to say Burmese cats as I have four and introducing them in No 10 could pose some challenges for Larry.” All five candidates will take part in another televised debate on ITV tomorrow at 7pm, with another showdown on Sky News on Tuesday.
The next round of voting for Tory MPs will take place on Monday, with further rounds if necessary, until there are only two candidates who will then fight for Conservative members’ support in the summer.
Their choice of the next prime minister will be announced on September 5th. Mr Johnson will then formally offer his resignation to the Queen.
Additional reporting: Sophie Huskisson and Alice Wright
