Sunak brands Truss 'socialist' over tax cuts as Tory rivals clash in second TV showdown

17 July 2022, 22:45 | Updated: 17 July 2022, 22:48

Rishi Sunak hit out at Liz Truss
Rishi Sunak hit out at Liz Truss. Picture: Getty

By Emma Soteriou

Rishi Sunak has branded Liz Truss a socialist after she revealed plans to cut taxes during a TV showdown.

Listen to this article

Loading audio...

All five Tory rivals clashed over tax policies in the second live debate on Sunday evening, as they fought to win support in the leadership race.

But it was Rishi Sunak who engaged in the more furious exchanges with Liz Truss and Penny Mordaunt.

The former Chancellor accused Ms Truss of peddling "something-for-nothing" economics after she said he was choking off growth by raising taxes to their highest level in 70 years.

And after Ms Mordaunt said she would not keep to his rule of only borrowing to invest, he said even former Labour leader Jeremy Corbyn did not push for such an approach.

Read more: Sunak vows to scrap EU red tape in 100 days as Tory leadership race tightens

Read more: Tory leadership hopeful Tom Tugendhat: 'I'm running to give people a choice'

'The last thing we need is a bore-off at the dispatch box.'

After she was criticised for a poor performance in the first debate, Ms Truss immediately went on the offensive in the second encounter, by attacking Mr Sunak's record in the Treasury.

"Rishi, you have raised taxes to the highest level in 70 years," she said.

"That is not going to drive economic growth.

"You raised national insurance, even though people like me opposed it in Cabinet at the time because we could have afforded to fund the NHS through general taxation.

"The fact is that raising taxes at this moment will choke off economic growth; it will prevent us getting the revenue we need to pay off the debt."

Does it matter to the people in your poll what colour the PM will be?

Mr Sunak said the pandemic damaged the economy and public finances had to be rebuilt.

"I'd love to stand here and say, 'Look, I'll cut this tax, that tax and another tax and it will all be OK.' But you know what? It won't," he said.

"There's a cost to these things and the cost of higher inflation, higher mortgage rates, eroded savings. And you know what? This something-for-nothing economics isn't Conservative. It's socialism."

Penny Mordaunt speaks during Britain's Next Prime Minister
Penny Mordaunt speaks during Britain's Next Prime Minister. Picture: Getty

Ms Mordaunt said the limited tax cuts she advocated were not inflationary and people need help now with the cost of living. "I don't understand why Rishi doesn't understand that," she said.

Mr Sunak said: "It is one thing to borrow for long-term investment. It is a whole other thing to put the day-to-day bills on the country's credit card. It is not just wrong, it is dangerous.

"Even Jeremy Corbyn didn't go that far."

Mr Sunak added: "If we are not for sound money, what is the point of the Conservative Party?"

'We should make sure these tax policies are not fairytale economics.'

There were some tense exchanges between Ms Mordaunt and Kemi Badenoch too - who had accused Ms Mordaunt in the first debate of having pushed a policy of gender self-identification for people who wanted to legally change their gender when she had government responsibility for the issue.

Following further reports in the press casting doubts on her denials, Ms Mordaunt said: "I know why this is being done but I would say all attempts to paint me as an out of touch individual will fail."

Ms Badenoch repeatedly tried to interrupt, saying: "Penny, I was just telling the truth. I am telling the truth."

Kemi Badenoch during Britain's Next Prime Minister
Kemi Badenoch during Britain's Next Prime Minister. Picture: Getty

Ms Truss also denied that she was running a negative campaign following attacks on Mr Sunak by some of her supporters who had accused him of bringing down Boris Johnson.

"I certainly don't believe in that kind of campaign. It is not the kind of campaign I am fighting. I am fighting a positive campaign about the future," she said.

The debate took place ahead of the third round of voting by MPs on Monday, with one more candidate due to to be eliminated, leaving just four.

Tom Tugendhat speaks during Britain's Next Prime Minister
Tom Tugendhat speaks during Britain's Next Prime Minister. Picture: Getty

Tom Tugendhat, who was fifth in the second round, sought to make a virtue of the fact that he alone of the remaining contenders had not served in government.

He said those who had been ministers under Boris Johnson "lent credibility to the chaos" which made it difficult for the Conservatives to win the next general election.

"Whatever your responsibility was in that government, whatever your place in that government was, Keir Starmer in two years' time is going to hold that record against us," he said.

"We need to make sure we're winning Conservative seats across the country, and even really good people lend credibility to the chaos candidate."

When asked to raise their hands if they would give Mr Johnson a job in their Cabinet, none of the candidates did.

More Latest News

See more More Latest News

The blurry thieves stole £3,000 worth of cigarettes and vapes.

Police release CCTV after thieves steal £3,000 of vapes - but images leave the public calling for 'the ghostbusters'

Julie Goodyear

Julie Goodyear's husband shares rare photo of Coronation Street star two years on from dementia diagnosis

: An aerial view shows the scorched graveyard around a church following a large blaze the previous day, on July 20, 2022 in Wennington, Greater London

Londoners urged not to have barbecues this weekend amid soaring temperatures 'because of wildfire risk'

Lord Sugar labels Trump tariffs 'a disaster' as Apprentice star teases potential US Presidential meeting

Lord Sugar labels Trump tariffs 'a disaster' - as Apprentice star teases potential US Presidential meeting

Mother and two children struck and killed by a vehicle in Brooklyn, New York: driver operating suspended license

Husband left 'utterly bereft' after Brit mum and two daughters killed in New York car crash

The Nintendo Switch 2 will release on June 5, 2025

Nintendo Switch 2: Exciting reveal, but why is it more expensive here?

BRITAIN-FUNERAL-POLICE

Funeral director charged with 64 offences including fraud, theft and preventing 30 lawful burials

swallow-tail

Brits urged to 'stop mowing lawns' amid 'national butterfly crisis' with more than half of species in decline

Kyle Kitchen, 38, murdered eight-week-old Primose Kane

Dad who murdered daughter by violently shaking her as baby is jailed for life

Buildings that were destroyed during the Israeli ground and air operations in Gaza

Israel expands ground attack on Gaza to seize 'large areas' - despite pleas from hostage families

Douglas Clifton Brown, 56, tried to kill his estranged wife

Old Etonian who tried to murder his estranged partner by throwing her down a 240ft well is jailed for 24 years

Kaliyah Coa, 11, was reportedly down at the water when she was 'swept away'

Pictured: Missing 11-year-old 'swept away' while paddling in the River Thames

Hot cross buns could be scarce this Easter as farmers continue to protest against Rachel Reeves' 'tractor tax'.

Hot cross bun shortage looms as farmers escalate 'tractor tax' protests

Tanesha Melbourne-Blake was shot

Teenage girl shot dead during gang 'ride-out' following social media humiliation

Mother and two children struck and killed by a vehicle in Brooklyn, New York: driver operating suspended license

Brit mum and daughters, eight and five, killed in crash by driver who said 'I have the devil in me'

Deborah Gosling, donor Julie Wild’s twin sister, greets Corinne Hutton in an emotional first meeting

Hand transplant recipient hugs donor's sister in emotional first meeting