London Daily

Focus on the big picture.
Thursday, Jul 16, 2026

UK's Sunak and Truss clash over tax in leadership debate

UK's Sunak and Truss clash over tax in leadership debate

British foreign minister Liz Truss clashed over tax policy with former finance minister Rishi Sunak on Friday, as the five remaining contenders to be Britain's next prime minister went head-to-head in the first of three televised debates.

An initial field of 11 challengers has been whittled down following two days of votes by lawmakers from the ruling Conservative Party. But no individual has yet emerged as the obvious successor to Boris Johnson who announced he was stepping down following a series of scandals.

While Sunak has topped those two votes, he faces stiff competition from Truss, who has the backing of a number of senior figures, and junior trade minister Penny Mordaunt, who polls suggest is the most popular with party members who will decide the winner.

Former equalities minister Kemi Badenoch and Tom Tugendhat, chair of parliament's Foreign Affairs Committee, also remain in the running but trail the others in support from Conservative lawmakers.

A snap poll by market research company Opinium of the British public -- who do not get a say in the Conservative Party decision on the next prime minister -- showed Tugendhat was viewed as the best performer by 36% of viewers.

Sunak came second on 24%, followed by Mordaunt and Badenoch on 12% and Truss at the rear on 7%.

Whoever gets the job will take on rocketing inflation and low economic growth, as well as the public's lack of confidence in politics after Johnson's scandal-ridden time in power.

Sunak and Truss tussled over economic policy in the debate, hosted by broadcaster Channel 4.

Truss has proposed scrapping increases in payroll tax and corporation tax proposed by Sunak, at a cost of over 30 billion pounds ($36 billion) a year, to be funded by a slower reduction in government debt built up during the COVID-19 pandemic.

"We have to be honest, borrowing your way out of inflation isn't a plan, it's a fairy tale," Sunak told Truss.

Truss said tax rises would undermine business investment just as the economy was faltering.

"You cannot tax your way to grace," she said.

Voter polls also suggest the Conservatives are falling significantly behind the opposition Labour Party.

"I'm very aware that while my party chooses a new leader, you are watching us pick your next prime minister... I hope you like at least one of us," Mordaunt told television viewers.

Tugendhat got applause from the studio audience for most clearly distancing himself from Johnson -- shaking his head when asked if he trusted the prime minister -- while Badenoch said her rival had dodged tough decisions by never serving in Johnson's government.


DOWN TO TWO BY JULY 21


Sunak, whose decision to quit the Treasury last week helped trigger a cascade of ministerial resignations that brought down Johnson, remains the favourite among his 358 Conservative parliamentary colleagues.

But his lead over Truss and Mordaunt is slim, and both could overtake him depending on whom lawmakers who backed other candidates choose to support. The battle has become increasingly hostile as the rivals fight to stay in the contest.

On Thursday, Attorney General Suella Braverman was knocked out of the race and she has thrown her support behind Truss, who has also gained the backing from David Frost who negotiated Britain's exit from the European Union.

The Times newspaper reported that Johnson was urging defeated leadership candidates to back "anyone but Rishi".

Meanwhile Mordaunt, a less well-known figure among the public at large who has become the bookmakers' favourite, is facing increasing attacks from rival camps over her experience, with Frost saying she was not tough enough towards the EU, a key issue for many Conservatives.

Both Truss and Badenoch also criticised Mordaunt for taking what they viewed as too liberal a stance on transgender issues.

Ballots of lawmakers will resume on Monday with the candidate with the fewest votes eliminated each time until a final two are chosen by July 21.

The new leader will then be selected by the country's 200,000 Conservative Party members, and will be announced on Sept. 5.

($1 = 0.8430 pound)

Newsletter

Related Articles

0:00
0:00
Close
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Church of England Rejects Plan to Rewild Thirty Percent of Land by 2030
UK Parliament Examines Future of Gaelic Broadcasting in Scotland
Thames Water Faces Criticism Over Four Million Pounds in Bonus Payments
South East Water Crisis Puts UK Water Regulation Under Renewed Scrutiny
UK Report Highlights Racial Inequality in Homelessness Support Services
UK Government Defends Proposed Social Media Curfew for Teenagers Despite Criticism
Reform UK Gains Recognition as Major Political Party in New Polling
Labour Party Faces Internal Divisions Over Gaza Policy and Asylum Reform
Experts Warn UK Housing and Transport Infrastructure Is Unprepared for Rising Extreme Heat
UK Human Rights Committee Begins Review of Immigration and Asylum Bill
UK Parliament Launches Inquiry Into Declining High Streets Across England
Bank of England Governor Warns of Growing AI Risks to Global Financial Security
UK Public Finance Institutions Mobilize Fifty Billion Pounds to Support Growth and Jobs
UK Parliament Opens Inquiry Into Long-Term Strategy Toward Russia
UK-India Trade Agreement Takes Effect With Zero-Duty Access for Nearly All Indian Exports
Forget Tinder: The Surprising Platform Where People Find Love
UK Government Faces Growing Debate Over Local Control of Immigration Enforcement
UK Biodiversity Forum Highlights Business Need to Protect Natural Environment
UK Parliament to Consider Workplace Temperature Limits Amid Climate Concerns
UK Parliament Considers Independent Immigration Appeals Authority Proposal
BBC Charter Renewal Scrutiny Intensifies as Parliament Reviews Broadcaster’s Future
Parliament Reviews Future of UK Maternity and Neonatal Care Services
UK-India Trade Accelerator Launched to Help Smaller Firms Expand Into Indian Market
UK Business Leaders Meet in Edinburgh to Address Economic Risks From Biodiversity Loss
UK Parliament Prepares for Sir Keir Starmer’s Final Prime Minister’s Questions Before Leadership Transition
Green Party-Led Lewisham Council Moves Against Cooperation With Home Office Immigration Raids
UK Government Faces Parliamentary Pressure Over Capita Contracts in Shared Services Programme
UK Economy Expected to See Modest Growth as OECD Highlights Fiscal and Global Risks
Public Accounts Committee Warns UK Government’s Four Point Three Billion Pound Shared Services Plan Risks Failure
EU and UK Sign Agreement Removing Gibraltar Border Controls After Years of Post-Brexit Uncertainty
OECD Warns UK Must Maintain Fiscal Discipline as Andy Burnham Prepares to Become Prime Minister
UK-India Free Trade Agreement Enters Into Force as Businesses Seek New Growth Opportunities
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
On the Island That Did Not Yield to Trump, There Is No Electricity, and 10 Million Live in Darkness
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
Key Trends to Watch
United Nations Expert Calls for Full Implementation of Supreme Court Ruling on Legal Definition of Sex
Industry Coalition Urges Labour Lawmakers to Back Continued North Sea Oil and Gas Production
Parliamentary Committee Calls for Tougher Restrictions on Unhealthy Food Advertising
Government Expands Awaab's Law to Cover Heat and Additional Housing Hazards
Energy Regulator Opens Independent Investigation Into National Grid Operator
United Kingdom and European Union Sign Landmark Gibraltar Border Agreement
Chancellor Unveils Financial Services Reform and Artificial Intelligence Strategy at Mansion House
Counterterrorism Police Take Over Investigation Into Killing of Former Minister Ann Widdecombe
Beer Industry Warns UK Rules Could Limit Growth of Alcohol-Free Market
Home Office Faces Legal Challenges Over Asylum Seeker Accommodation Closures
UK Heatwaves Linked to More Than Two Thousand Seven Hundred Deaths as Climate Debate Intensifies
Home Secretary Faces Pressure Over Political Security After Ann Widdecombe Murder Investigation
×