London Daily

Focus on the big picture.
Thursday, Feb 19, 2026

Tory leadership rivals trade blows over tax and spending

Tory leadership rivals trade blows over tax and spending

Tory leadership frontrunners have clashed over how best to fund public services and control inflation in the contest's first TV debate.

Foreign Secretary Liz Truss attacked tax rises introduced under ex-chancellor Rishi Sunak as "wrong" and pledged to reverse them.

But Mr Sunak said they were needed to fund the NHS, and accused her of believing in economic "fairy tales".

Rivals also sparred over Boris Johnson, trans rights and trust in politics.

All five remaining candidates in the Tory leadership race took part in the Channel 4 TV debate, the first of two this weekend. They come ahead of the next round of MPs' voting on Monday.

Tory MPs will whittle the field down to two final contenders next week, before around 160,000 Tory members decide the party's next leader in a postal vote.
In a lively 90 minutes of exchanges, the economic backdrop loomed large as candidates were

pushed on how they would fund public services and help people with the cost of living during a time of soaring inflation.

Mr Sunak, currently in pole position among MPs, was forced to defend tax rises introduced during his time as chancellor, including April's hike in National Insurance to pay for social care and the NHS.

Ms Truss, who came third in the latest MPs' voting round on Thursday, said the hike had been "wrong" and said she had "called it out" in cabinet.

She said if she won power she would reverse the rise, as well as removing green levies on energy bills - saying she would pay for it for by spreading the UK's "Covid debt" over a longer period.


The race to be our next prime minister is reaching a crucial phase.

By Wednesday, the shortlist will have been whittled down to two by Conservative MPs, who will then be put to Conservative party members over summer.

There is a lot to play for in the next few days - and you could tell in the first TV debate.

Three things stuck out for me in the exchanges.

Firstly, the Conservative Party is keen to move on from Boris Johnson.

Although it's just eight days since Mr Johnson agreed to resign, the candidates to be his successor want the next chapter to start as soon as possible.

But Mr Sunak rubbished her proposals, saying there was "no such thing as Covid debt" and warned against an "unfunded spree" of tax cuts, adding that "borrowing your way out of inflation isn't a plan, it's a fairy-tale".

Trade Minister Penny Mordaunt, currently second in the contest, said her economic blueprint, which involve raising income tax thresholds in line with inflation, was based on better "growth and competition".

When pressed by Mr Sunak that her plans would also require more borrowing, she denied she had promised to "reduce a load of taxes" but said "people need help now".

"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," she added.


Elsewhere, candidates traded blows over Mr Johnson's legacy and trust in politics after the Partygate and Chris Pincher affairs that played a key role in the Tory revolt that forced the prime minister from office.

Mr Tugendhat, the fifth-placed contender among MPs and the only one not to have held a ministerial post under Mr Johnson, said his party needed a "break from those who sat around the table" to reset the party's direction.

He pitched himself as a "clean face" and when asked for a yes or no answer on whether Mr Johnson was honest, Mr Tugendhat was the only candidate to answer with a direct "no", which won applause from the crowd.

"It's easy to stand up to your enemies - it's sometimes harder to stand up to your friends," he added.

He also said he had not supported the National Insurance rise, calling it a "tax on jobs", and accused Mr Sunak of only backing it in office "because the boss wanted it".

But the backbench MP's interventions received a curt response from fourth-placed contender Kemi Badenoch, a former equalities minister, who said he "didn't have any responsibilities" and likened him to a pupil pointing out problems from the "back of the class".

Elsewhere in the debate:

*  Penny Mordaunt said she took attacks on her in the press from rivals as a "big fat compliment that no one wants to run against me"

*  Kemi Badenoch was the only candidate who said she would not recommit to the government's pledge to reach net zero carbon emissions by 2050

*  Liz Truss blamed the Bank of England for high inflation, arguing "we haven't been tough enough on the monetary supply"

Ms Mordaunt also clashed with Ms Truss and Ms Badenoch over her record on trans rights during her time as an equalities minister.

In a spiky section of the debate, both Ms Badenoch and Ms Truss accused Ms Mordaunt of supporting "self-ID", a process allowing a trans person to legally change their gender without, for example, a medical diagnosis.

Ms Mordaunt denied ever supporting the policy, but Ms Badenoch, who succeeded Ms Mordaunt in the equalities role, said she found that "hard to accept" and her understanding was Ms Mordaunt had pushed for it.

Ms Truss, who also had responsibility for equalities alongside her role as foreign secretary, said she had "changed the outcome" of a consultation to ensure self-ID was not brought in.


WATCH: The first TV debate in 90 seconds


Newsletter

Related Articles

0:00
0:00
Close
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
UK Inflation Slows Sharply in January, Strengthening Case for Bank of England Rate Cut
Hide the truth, fake the facts, pretend the opposite, Britain is as usual
France President Macron says Free Speech is Bull Sh!t
Viktor Orbán getting massive praise for keeping Hungary safe, rich and migrant-free!
UK Inflation Falls to Ten-Month Low, Markets Anticipate Interest Rate Cut
UK House Prices Climb 2.4% in December as Market Shows Signs of Stabilisation
BAE Systems Predicts Sustained Expansion as Defence Orders Reach Record High
Pro-Palestine Activists Cleared of Burglary Charges Over Break-In at UK Israeli Arms Facility
Former Reform UK Councillors Form New Local Group Amid Party Fragmentation
Reform UK Pledges to Retain Britain’s Budget Watchdog as It Seeks Broader Economic Credibility
Miliband Defends UK-California Clean Energy Pact After Sharp Criticism by Trump
University of Kentucky to Host 2026 Summer Camps Fair Connecting Families with Local Programmes
UK Police Forces Assess Claims Jeffrey Epstein Used Stansted Airport Flights in Trafficking Network
UK-Focused Equity ETF FLGB Climbs to Fresh 52-Week Peak on Strong Market Sentiment
Trump Warns UK’s Chagos Islands Agreement Is a “Big Mistake” Amid Strategic Security Debate
Trump Urges UK to Retain Sovereignty Over Diego Garcia Amid Strategic Concerns
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
Rupert Lowe wanted to deport rape gangs and the communities who protected them
Reform UK Appoints Former Conservative Minister Robert Jenrick as Finance Chief
UK Unemployment Rises to Highest in Nearly Five Years as Labour Market Weakens
Rupert Lowe Advocates for English-Only Use in the UK
US Successfully Transports Small Nuclear Reactor from California to Utah
South Korea's traditional sand wrestling sport ssireum faces declining interest at home
Japan outlawed Islam
Virginia Giuffre accuses Epstein of trafficking to powerful men for blackmail.
New Mexico lawmakers initiate investigation into Zorro Ranch linked to Jeffrey Epstein
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
The Spanish government has ordered prosecutors to investigate platforms X, Meta and TikTok for allegedly spreading AI-generated child sexual abuse material
European Commission Plans Purchase Incentives Limited to Vehicles Manufactured Largely in the EU
French District of Pas-de-Calais Introduces Immediate License Suspension for Drivers Using Mobile Phones
Volkswagen Targets €60 Billion in Cost Reductions as Sales Decline and Global Pressures Intensify
Nigel Farage Names Reform UK Frontbench Team and Signals Zero Tolerance for Internal Dissent
Qualcomm to Withdraw UK Lawsuit Over Smartphone Chip Royalty Dispute
Major UK Banks Explore Domestic Card Network to Rival Visa and Mastercard
Cold Health Alert Issued Across UK as Temperatures Drop Sharply
Nine-Year-Old Becomes First Child in UK to Undergo Groundbreaking Leg-Lengthening Surgery
UK Workers Face Stagnant Incomes and a Softening Labour Market as Unemployment Climbs
UK Passport Rules Tightened for British Dual Nationals Under New Travel Guidance
California Deepens Global Climate Alliance with New UK Pact and Major Clean-Tech Investment Drive
UK Supreme Court Tightens Rules on Use of ‘Milk’ and ‘Cheese’ Labels for Plant-Based Products
University of Kentucky Postpones Feb. 19 Law Enforcement Training Exercise in Lexington
‘The only thing illegal is Keir Starmer handing these islands to a country like Mauritius!’
JD Vance says Germany is “killing itself” by taking in millions of fake asylum seekers from culturally incompatible nations.
UK Markets Signal Opportunity as Starmer Confronts Intensifying Political Pressure
Trump Criticises Newsom’s UK Climate Pact, Defends Federal Authority Over Foreign Engagements
UK’s Top Prosecutor Says ‘No One Is Above the Law’ as Police Review Claims Against Ex-Prince Andrew
Businessman Adam Brooks weighs in on the reports that the US is set to help Hamit Coskun flee the UK, over free speech concerns
U.S. Attorney General Pam Bondi Releases 3.5 Million Pages of Jeffrey Epstein Case Files
US Secretary of State Marco Rubio Comment on European allies report blaming Russia for killing late Kremlin critic Alexei Navalny using toxin from poison dart frogs
×