Tory leadership – live: Truss says Sunak government would be ‘disaster’ for UK economy

Truss accuses Sunak of being ‘Project Fear’

No 10 hopeful Liz Truss has suggested a Conservative government led by Rishi Sunak would be a “disaster” for homeowners, workers and businesses.

Speaking to Sky News, the foreign secretary said: “Let’s be clear, his (Rishi Sunak’s) plan is to raise taxes. He is planning to raise taxes on corporations, putting our taxes up to the same level as France. That is going to put off people who want to invest in Britain.”

She continued: “I could quote the OECD who said that our current policy is contractionary. And what that means is it will lead to a recession. A recession would be a disaster, it would be a disaster for people who are homeowners.

“It would be a disaster for people who go out to work. It would be a disaster for people who run businesses.”

It comes after Lord William Hague warned that Boris Johnson will be a “permanent nightmare” for the new prime minister.

He claimed it is “already apparent” that Mr Johnson wants “revenge” on Mr Sunak, whose resignation as chancellor triggered a ministerial exodus, and suggested that Ms Truss will also face an “identical problem” if she is the one chosen to replace him.

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Sadiq Khan says Rishi Sunak and Liz Truss are both just ‘continuity Boris Johnson’

Sadiq Khan says Rishi Sunak and Liz Truss are both just ‘continuity Boris Johnson’

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Truss defends economic plan

Now is the time we need to get the economic growth into our economy to avoid a recession, Liz Truss has said in defence of her low taxation plans.

When told her economic policy is backed by a minority of economists, the foreign secretary told Sky News: “I don’t base my policies on the number of economists… The question is who is right.

“The fact is we are one of the few G7 countries that are putting up taxes.

“Countries like the United States, Canada, Japan have higher levels of debt than us.

“They are not putting up taxes because they understand that now is the time we need to get the economic growth into our economy to avoid a recession and to make sure that we are attracting business investment and those jobs and growth for the future.”

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‘Kick in the teeth’: Black Labour MPs condemn party’s response to report uncovering ‘racism’

Black Labour MPs have attacked their party’s response to a damning report finding “overt and underlying racism” in its ranks, one calling it “a kick in the teeth”.

Keir Starmer is accused of claiming the problems had been overcome with the departure of Jeremy Corbyn and the “unacceptable culture” the former party leader fostered.

In fact, the Forde report found that factional infighting predated Mr Corbyn’s election in 2015 – and pointed to “continuing concerns” about Labour processes, Dawn Butler argued.

Our deputy political edtior Rob Merrick reports:

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I don’t take notice of RMT’s ‘bellicose threats’, says Truss

It is “completely wrong” that members of the public needing to travel are “being held ransom my militant unions”, Liz Truss has said.

Asked about the comments made by RMT general secretary Mick Lynch, the foreign secretary told Sky News: : “I don’t take any notice of these bellicose threats.

“I am on the side of the travelling public who need to get into work to do their jobs. We are facing a global economic crisis, it is completely irresponsible of the trade unions to call these strikes at the time as we are seeking to get the economy go. And I will legislate to make sure that those core services are provided to the public.”

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Opinion: Sunak and Truss have got it wrong on private education

Separating children according to wealth (or according to their really, really hard working parents) perpetuates social inequality; removing kids from the state system makes that system worse for everyone. If the Tories really want to “level up”, they’ll stop at nothing to make comprehensive education first class so that everyone gets the same golden opportunities Sunak is so grateful he had, writes Harriet Toner.

Of course, this would mean the Tory politicians of the future wouldn’t be able to use their education as leverage to prove their ever-so-humble beginnings. But I think we’ll all cope.

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Sunak as PM would be ‘disaster’ for homeowners, says Truss

No 10 hopeful Liz Truss has suggested a Conservative government led by Rishi Sunak would be a “disaster” for homeowners, workers and businesses.

Speaking to Sky News, the foreign secretary was grilled about the IMF world economic update – which implied that not cutting taxes and keeping spending down is the way forward.

She said: “Let’s be clear, his (Rishi Sunak’s) plan is to raise taxes. He is planning to raise taxes on corporations, putting our taxes up to the same level as France. That is going to put off people who want to invest in Britain. And I know there are masses of opportunities right across the country.

“Less investment will mean fewer jobs, fewer opportunities, lower wages and lower productivity in the future. So it’s cutting off our nose to spite our face. The fact is that we promised in our manifesto not to raise national insurance. I thought it was wrong at the time to do so, and that is why I would reverse that.

“I also want to put money into people’s pockets. I could quote the OECD who said that our current policy is contractionary. And what that means is it will lead to a recession. A recession would be a disaster, it would be a disaster for people who are homeowners. It would be a disaster for people who go out to work. It would be a disaster for people who run businesses.

“That is why I want to keep taxes low, attract the investment, get the growth. That’s the best way to pay down our debt.”

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‘I put my case across’: Truss comments on Sunak’s interruptions during debate

On whether she got annoyed by Rishi Sunak interrupting her during the BBC televised debate, Liz Truss told Sky News: “I put my case across. I think the audience understood what I was saying. And that I am on the side of people who work hard, who do the right thing.

“And that is the kind of government I would run. The fact is that the current business as usual policy isn’t working, is not delivering for people across Britain.

“I’m an optimist about the future. I think we are a country with great potential. And I want us to do more. I want us to be better. And I can lead that change.”

(PA )

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Brexit set to cause shortage of animal medicines in Northern Ireland

Boris Johnson‘s Brexit deal is set to create a shortage of veterinary medicines for sick animals in Northern Ireland, a parliamentary committee has warned.

Over half of veterinary medicines used in the territory are expected to be become unavailable when the Northern Ireland protocol agreed by the UK and EU comes into full force at the end of the year, writes Jon Stone.

The EU has so far extended grace periods on the medicines to allow them to be used in Northern Ireland until the end of 2022 – but supply chains are yet to adjust and MPs and ministers say they are extremely concerned.

Drugs affected are expected to include those for cardiovascular conditions, anaesthetics and vaccines, including those that prevent salmonella and E. coli.

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‘Utter madness’: Truss and Sunak accused of failing to address climate crisis ‘as the world is dying’

Viewers of the Tory leadership contest could be forgiven for thinking the world isn’t in the grip of a climate emergency.

Former chancellor Rishi Sunak and home secretary Liz Truss have been accused of a lack of ambition and knowledge on the subject in their exchanges on Monday evening, despite last weeks record UK temperatures.

The climate crisis was spoken about for less than two minutes during the hour long programme, with more time dedicated to discussions on what clothes and jewellery the candidates were wearing.

Our environment correspondent Harry Cockburn writes:

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ICYMI- Truss supporters accuse Sunak of ‘mansplaining’ during BBC debate

Liz Truss supporters have accused her rival Rishi Sunak of “mansplaining” during last night’s fiery BBC debate in the first head-to-head between the last two candidates.

However, while Simon Clarke MP did not agree when probed if Mr Sunak did ‘mansplain’, he flagged the former budget chancellor’s “aggressive” appoach at the start of the debate.

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