London Daily

Focus on the big picture.
Sunday, Aug 30, 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
UK Officials Highlight 80 Years of Diplomatic Relations With Philippines
Heavy Rain Disrupts Parts of England After Weeks of Extreme Summer Heat
More Than 200 Extra Police Officers Deployed Across Cleveland After Violent Incidents
Burnham Meets Northern Ireland Leaders for Talks on Economy and Youth Employment
Burnham to Abstain From UK Assisted Dying Vote
NHS Leaders Warn of Severe Financial and Staffing Pressures Ahead of Autumn
UK Treasury Prepares October Budget as Defense and Public Spending Pressures Mount
Scottish Government Publishes Draft Bill for Second Independence Referendum
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
UK and Ukraine Agree AI-Focused Defense Technology Partnership
US Reportedly Weighs Falkland Islands Policy Shift to Pressure UK Over NATO Spending
UK Government Mobilizes Emergency Aid as British Nationals Remain Missing After Nepal Floods
UK Hospitality Industry Reports Stronger Summer Trading but Seeks Tax Relief
Reform UK Proposes £30 Tax Credit for Long HMRC Helpline Waits
Labour Debates Caps on Political Donations Ahead of Future Elections
England Accelerates Housing and Planning Reforms Amid Affordability Crisis
NHS Expands Walk-In Community Health Centers to 40 Locations
UK Regulators Expect Meta to Apply Stronger Child Safety Standards Globally
UK Groups Demand Faster Transport Decarbonization After Extreme Summer Weather
UK Launches 10,000 Work Experience Placements as Youth Unemployment Concerns Rise
UK Government Faces Difficult Autumn Budget Choices Over Defense, Spending and Taxes
UK Government Rejects Calls to Slow AI Data Center Expansion
IMF Raises UK Growth Forecast to 1% Despite Global Supply Chain Risks
UK Unsecured Loan Defaults Reach Highest Level Since 2009
UK Energy Price Cap to Rise 4% to Three-Year High of £1,723
More Than 30 Britons Reported Missing After Deadly Nepal-Tibet Floods
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
Police Intensify Investigation Into Organised Crime-Linked Violence in Middlesbrough
UK Small Businesses Face Continued Revenue and Tax Pressures, Federation Says
M&G Real Estate Buys West Sussex Affordable Housing Portfolio for £29 Million
Royal Navy Warship HMS Tamar Visits Cambodia for Regional Security Engagement
UK Government Brings Forward Benefit Payments Ahead of August Bank Holiday
Four Men Plead Guilty to Arson Attack on Jewish Community Ambulances in North London
Ofgem Raises Great Britain’s Household Energy Price Cap by Four Percent From October
UK Government Rejects Green Party Call for Artificial Intelligence Datacentre Moratorium
Millions of UK Benefit Recipients Receive Payments Early Ahead of August Bank Holiday
UK Prime Minister Meets Northern Ireland Leaders in Belfast Over Budget Crisis
Crypto Tax Gains Reach One Point Three Eight Billion Pounds Among UK Investors, HMRC Data Shows
UK Corporate Confidence Rises to Highest Level Since March, Lloyds Survey Shows
Mike Ashley Attacks UK Government Business Rates and Cost-of-Living Policies
Scottish Universities Face Two Hundred Million Pound Annual Funding Gap, Report Warns
Entertainment Figures Urge UK Government to Protect People From AI Voice Cloning
Manchester Airports Group Confirms Customer Data Breached in Cyberattack
Seven Charged Over Vandalism at Donald Trump’s Turnberry Golf Resort in Scotland
Nearly 23,000 UK Households Expected to Move Home on Busiest Day of 2026
UK Benefit Payments to Arrive Early Ahead of August Bank Holiday
Reform UK Pledges to Replace GDPR and Cut Tax Administration Red Tape
Andy Burnham Launches Work Experience Plan for One Million Young People Outside Education or Work
Andy Burnham Faces Labour Backlash After Dropping Support for Political Donations Cap
Andy Burnham Announces UK-Wide Summit With Leaders of Scotland, Wales and Northern Ireland
×