London Daily

Focus on the big picture.
Friday, Nov 07, 2025

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
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
UK Business Lobby Urges Reeves to Break Tax Pledges and Build Fiscal Headroom
UK to Launch Consultation on Stablecoin Regulation on November 10
UK Savers Rush to Withdraw Pension Cash Ahead of Budget Amid Tax-Change Fears
Massive Spoilers Emerge from MAFS UK 2025: Couple Swaps, Dating App Leaks and Reunion Bombshells
Kurdish-led Crime Network Operates UK Mini-Marts to Exploit Migrants and Sell Illicit Goods
UK Income Tax Hike Could Trigger £1 Billion Cut to Scotland’s Budget, Warns Finance Secretary
Tommy Robinson Acquitted of Terror-related Charge After Phone PIN Dispute
Boris Johnson Condemns Western Support for Hamas at Jewish Community Conference
HII Welcomes UK’s Westley Group to Strengthen AUKUS Submarine Supply Chain
Tragedy in Serbia: Coach Mladen Žižović Collapses During Match and Dies at 44
Diplo Says He Dated Katy Perry — and Justin Trudeau
Dick Cheney, Former U.S. Vice President, Dies at 84
Trump Calls Title Removal of Andrew ‘Tragic Situation’ Amid Royal Fallout
UK Bonds Rally as Chancellor Reeves Briefs Markets Ahead of November Budget
UK Report Backs Generational Smoking Ban Ahead of Tobacco & Vapes Bill Review
UK’s Domino’s Pizza Group Reports Modest Like-for-Like Sales Growth in Q3
UK Supplies Additional Storm Shadow Missiles to Ukraine as Trump Alleges Russian Underground Nuclear Tests
High-Profile Broodmare Puca Sells for Five Million Dollars at Fasig-Tipton ‘Night of the Stars’
Wilt Chamberlain’s One-of-a-Kind ‘Searcher 1’ Supercar Heads to Auction
Erling Haaland’s Remarkable Run: 13 Premier League Goals in 10 Matches and Eyes on History
UK Labour Peer Warns of Emerging ‘Constituency for Hating Jews’ in Britain
UK Home Secretary Admits Loss of Border Control, Warns Public Trust at Risk
President Trump Expresses Sympathy for UK Royal Family After Title Stripping of Prince Andrew
Former Prince Andrew to Lose His Last Military Title as King Charles Moves to End His Public Role
King Charles Relocates Andrew to Sandringham Estate and Strips Titles Amid Epstein Fallout
Two Arrested After Mass Stabbing on UK Train Leaves Ten Hospitalised
Glamour UK Says ‘Stay Mad Jo x’ After Really Big Rowling Backlash
Former Prince Prince Andrew Faces Possible U.S. Congressional Appearance Over Jeffrey Epstein Inquiry
UK Faces £20 Billion Productivity Shortfall as Brexit’s Impact Deepens
UK Chancellor Rachel Reeves Eyes New Council-Tax Bands for High-Value Homes
UK Braces for Major Storm with Snow, Heavy Rain and Winds as High as 769 Miles Wide
U.S. Secures Key Southeast Asia Agreements to Reshape Rare Earth Supply Chains
US and China Agree One-Year Trade Truce After Trump-Xi Talks
BYD Profit Falls 33 % as Chinese EV Maker Doubles Down on Overseas Markets
US Philanthropists Shift Hundreds of Millions to UK to Evade Regulatory Uncertainty in Trump Era
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
King Charles Strips Prince Andrew of Titles and Royal Residence
Trump–Putin Budapest Summit Cancelled After Moscow Memo Raises Conditions for Ukraine Talks
Amazon Shares Soar 11% as Cloud Business Hits Fastest Growth Since 2022
Credit Markets Flooded with More Than $200 Billion of AI-Linked Debt Issuance
U.S. Treasury Secretary Scott Bessent Says China Made 'a Real Mistake' by Threatening Rare-Earth Exports
Report Claims Nearly Two Billion Dollars in Foreign Charity Funds Flowed into U.S. Advocacy Groups
×