London Daily

Focus on the big picture.
Tuesday, Jan 06, 2026

2 UK leadership contenders spar over tax in TV debate

2 UK leadership contenders spar over tax in TV debate

The two candidates vying to be Britain’s next prime minister sparred Monday over how to help families struggling with the soaring cost of living, meeting in a testy televised debate that highlighted the contrasting economic visions of the Conservative Party rivals.
Foreign Secretary Liz Truss promised to cut taxes as soon as she took office, using borrowing to pay for it. Former Treasury chief Rishi Sunak said he would get inflation under control first, arguing that Truss’s plan would increase the public debt and leave people worse off in the long run.

Tempers flared as Sunak said that “it’s not moral to ask our children to pick up the tab for the bills that we’re not prepared to pay.”

Truss called that “Project Fear” and said it was sensible to borrow to rebuild from the coronavirus pandemic, a “once in a 100-year event.”

The pair are battling to succeed Boris Johnson, who quit as leader of the governing Conservative Party on July 7 after months of ethics scandals triggered a mass exodus of ministers from his government. The contest has exposed deep divisions within the party as it tries to move on from the tarnished, but election-winning Johnson.

Oddsmakers say Truss is the favorite to win. She outperforms Sunak in polls of Conservative members — though Sunak has the edge among voters as a whole.

The winner will be chosen by about 180,000 Conservative Party members and will automatically become prime minister, governing a country of 67 million. Party members will vote over the summer, with the result announced Sept. 5. Johnson remains caretaker prime minister until his successor is chosen.

Truss, 46, and Sunak, 42, have wooed Conservatives by doubling down on policies thought to appeal to the right-wing Tory grassroots, including a controversial plan to deport some asylum-seekers to Rwanda.

The government says the policy will deter people-traffickers from sending migrants on hazardous journeys across the Channel. Political opponents, human rights organizations and even a few Conservative lawmakers say it is immoral, illegal and a waste of taxpayers’ money.

The first scheduled deportation flight was grounded after legal rulings last month, and the whole policy is now being challenged in the British courts.

Hard-line policies like the Rwanda plan are less popular with voters as a whole than with Conservatives, but the British electorate won’t get a say on the government until the next national election, due by the end of 2024.

The leadership election is taking place during a cost-of-living crisis driven by soaring food and energy prices, partly due to the war in Ukraine. While many countries are experiencing economic turbulence, in Britain it’s compounded by the country’s departure from the European Union, which has complicated travel and business relations with the U.K.’s biggest trading partner.

Both Sunak and Truss are strong supporters of Brexit, which was the signature policy of the Johnson government.

Both denied Brexit was responsible for huge queues of vehicles waiting to cross to France at the port of Dover in recent days.

Sunak is running as the candidate of fiscal probity, while Truss has positioned herself as a disruptor who will “challenge orthodoxy” and “get things done.”

The two sparred on topics such as policy toward China, with Truss accusing Sunak of changing his stance on relations with Beijing.

Sunak says that China represents the “biggest-long term threat to Britain” and that if elected he would close the 30 Confucius Institutes in Britain. Funded by the Chinese government, the institutes teach Chinese language and culture, but have been accused of spreading pro-Beijing propaganda.

“As recently as a month ago you were pushing for closer trade relationships with China,” said Truss, who warned the West must not become “strategically dependent” on China.

“I’m delighted that you’ve come round to my way of thinking,” she said.

Sunak faces hostility from allies of Johnson, who consider him a turncoat for quitting the government earlier this month, a move that helped bring down the prime minister. Truss chose to remain in the caretaker government.

Both candidates, though, said Johnson would not be part of their government if they became prime minister.

“I think we need to look forward at this point,” Sunak said.

Truss said Johnson “deserves a well-earned break, and added: “What’s done is done.”

Many Conservatives worry that the bitter internal fighting the campaign has already brought is only benefitting the opposition Labour Party. Former party chairwoman Amanda Milling said the contest was “more toxic than I’ve ever seen.”

Writing on Twitter, she urged both candidates to sign up to a “Clean Campaign Charter,” saying that without it “the lasting damage to our Party could see us out of power for a decade.”
Newsletter

Related Articles

0:00
0:00
Close
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
×