London Daily

Focus on the big picture.
Tuesday, Nov 03, 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
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
Treasury Officials Review Taxation Frameworks and Capital Gains Rules Ahead of Autumn Budget Disclosures
National Health Service Leaders Warn of Winter Capacity Pressures Across Acute Care Facilities
Bank of England Prepares for Key Interest Rate Decision Amid Sticky Inflation and Fiscal Policy Pressures
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
Scottish First Minister John Swinney Announces Major Regional Infrastructure and Green Energy Investment Strategy
National Health Service Leaders Warn of Severe Winter Pressures and Mounting Accident and Emergency Backlogs
Bank of England Monetary Policy Committee Signals Cautious Interest Rate Path Amid Persistent Services Inflation
Chancellor of the Exchequer Rachel Reeves Finalizes Autumn Budget Framework Aiming to Close Public Sector Fiscal Gap
Department for Science, Innovation and Technology Prepares Enhanced Artificial Intelligence Safety and Cyber Defense Frameworks
United Kingdom Government Expands International Sanctions Framework Against Russian Shadow Fleet and Financial Enablers
Institute of Directors Reports Sharp Post-Budget Drop in Business Confidence Despite Long-Term Investment Intention Shifts
Chancellor John Healey Defends Sweeping Fiscal Adjustments and Household Support Packages Following Autumn Budget
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
Loughborough University Economic Analysts Highlight Substantial Uncertainty Surrounding Public Sector Efficiency Savings
British Legal Sector Drives Sixty Billion Pounds in Annual Economic Output While Employing Over Half a Million Professionals
Law Society Welcomes New Better Regulation Executive While Pressing for Long-Term Legal Aid Funding Reform
Metropolitan Police and Security Services Heighten Operations Across London Ahead of Large-Scale Public Demonstrations
Bank of England Economists Scrutinize Corporate Tax Adjustments and Public Sector Borrowing Pressures
Chancellor John Healey Defends Autumn Budget Tax and Spending Allocations Following Intense Parliamentary Scrutiny
Department for Environment, Food and Rural Affairs Implements Strict Water Quality Monitoring Rules Following Severe Rainfall and Flooding
Welsh Government Unveils Comprehensive Regional Housing Strategy to Address Rural Affordability and Homelessness Pressures in Cardiff
Office for National Statistics Reports Slowing Consumer Price Inflation and Steady Retail Performance Across United Kingdom Markets
×