London Daily

Focus on the big picture.
Monday, Jan 26, 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
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
Nigel Farage Attended Davos 2026 Using HP Trust Delegate Pass Linked to Sasan Ghandehari
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
BlackRock Executive Rick Rieder Emerges as Leading Contender to Succeed Jerome Powell as Fed Chair
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
FBI and U.S. prosecutors vs Ryan Wedding’s transnational cocaine-smuggling network: the fight over witness-killing and cross-border enforcement
Trump Administration’s Iran Military Buildup and Sanctions Campaign Puts Deterrence Credibility on the Line
Apple and OpenAI Chase Screenless AI Wearables as the Post-iPhone Interface Battle Heats Up
Tech Brief: AI Compute, Chips, and Platform Power Moves Driving Today’s Market Narrative
NATO’s Stress Test Under Trump: Alliance Credibility, Burden-Sharing, and the Fight Over Strategic Territory
OpenAI’s Money Problem: Explosive Growth, Even Faster Costs, and a Race to Stay Ahead
Trump Reverses Course and Criticises UK-Mauritius Chagos Islands Agreement
Elizabeth Hurley Tells UK Court of ‘Brutal’ Invasion of Privacy in Phone Hacking Case
UK Bond Yields Climb as Report Fuels Speculation Over Andy Burnham’s Return to Parliament
America’s Venezuela Oil Grip Meets China’s Demand: Market Power, Legal Shockwaves, and the New Rules of Energy Leverage
TikTok’s U.S. Escape Plan: National Security Firewall or Political Theater With a Price Tag?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
Will AI Finally Make Blue-Collar Workers Rich—or Is This Just Elite Tech Spin?
Prince William to Make Official Visit to Saudi Arabia in February
Prince Harry Breaks Down in London Court, Says UK Tabloids Have Made Meghan Markle’s Life ‘Absolute Misery’
Malin + Goetz UK Business Enters Administration, All Stores Close
EU and UK Reject Trump’s Greenland-Linked Tariff Threats and Pledge Unified Response
UK Deepfake Crackdown Puts Intense Pressure on Musk’s Grok AI After Surge in Non-Consensual Explicit Images
Prince Harry Becomes Emotional in London Court, Invokes Memory of Princess Diana in Testimony Against UK Tabloids
UK Inflation Rises Unexpectedly but Interest Rate Cuts Still Seen as Likely
AI vs Work: The Battle Over Who Controls the Future of Labor
Buying an Ally’s Territory: Strategic Genius or Geopolitical Breakdown?
AI Everywhere: Power, Money, War, and the Race to Control the Future
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
×