RISHI Sunak and Liz Truss went to war on the economy last night as they clashed in their first one-on-one TV debate.
The ex-Chancellor said her “sugar rush” plans for £34billion of tax cuts would backfire by pushing up mortgage rates by as much as seven per cent.
Liz Truss accused Rishi Sunak of peddling ‘Project Fear’
The ex-Chancellor said her ‘sugar rush’ plans for £34billion of tax cuts would backfire by pushing up mortgage rates by as much as seven per cent
They went to war on the economy last night as they clashed in their first one-on-one TV debate
This would slap thousands of pounds on to families’ bills, plunge millions into “misery” and cause the Tories to lose the next election, Mr Sunak warned.
But hitting back at her rival, Ms Truss accused him of peddling “Project Fear”.
She said his refusal to cut the sky-high tax burden would send the nation straight into a devastating recession.
In a fiery showdown on the BBC, Ms Truss said her plans to lop a whopping £34billion off the tax bill would “turbocharge” the economy.
She warned that a vote for Sunak would be a vote for recession, fuming: “No other country is putting up taxes at this moment. The OECD has described Rishi’s ratios policies as contractionary.
“What does contractionary mean? It means it will lead to a recession.”
Hitting back at the bookies’ favourite, Rishi said Ms Truss’s plans would send mortgage bills soaring and end up tanking the economy.
That would lead to a Tory bloodbath at the next General Election, he warned.
He said: “Your own economic adviser has said that would lead to mortgage rates, interest rates, going up to seven per cent.
“Can you imagine what that’s going to do for everyone here and everyone watching? That’s thousands of pounds on their mortgage bill.
“It is going to tip millions of people into misery. And it’s going to mean we absolutely have no chance of winning the next election either.”
Accusing Liz of “dishonest” lies to voters, he said her plans would “mean that we get this short-term sugar rush of unfunded tax cuts, but that would be followed by the crash of higher prices and higher mortgage rates.”
But coming out swinging, Ms Truss accused Rishi of Remainer-style doom and gloom of Britain’s prospects.
She called for a new era of radicalism, self-confidence, and tax cuts to get the nation firing on all cylinders again.
Ms Truss said: “When you have a major world event, a major economic shock, trying to pay back the debt as quickly as possible is not the right thing to do economically.”
“We didn’t do that after the Second World War. We shouldn’t do that now.”
Hitting out at Rishi’s promises of jam tomorrow, she said: “What people want to see is urgent action. They don’t want promises tomorrow.”
In a blistering showdown, the pair were challenged on the extraordinary “blue-on-blue” attacks that have marred the leadership contest.
Rishi kept talking over her and her team last night accused him of “not being fit for office”.
In an astonishing attack, one of her allies said: “His aggressive mansplaining and shouty private school behaviour is desperate, unbecoming and is a gift to Labour.”
But Mr Sunak won the first round of applause of the evening after he fiercely defended his privileged upbringing — saying it was a product of his family’s hard work.
Rishi defended his parents who “worked day and night, saved and sacrificed” as pharmacists to send him to the private Winchester School.
He added: “I’m certainly not going to apologise for the fact that they worked hard” adding: “That’s the values we should champion.”
The two wannabe PMs will square up for HOAR’s telly clash on TalkTV at 6pm tonight.
As the race hits the final, crucial stage, Team Liz and Team Rishi will spend the next five weeks dashing round the country on a charm offensive with Tory members. They will appear at a dozen public hustings laid on by party chiefs to set out their big vision for the country.
Rishi is in a race against time to turn his chances around.
While he smashed his rivals in the ballot of MPs, he is lagging behind with Tory activists — the only electorate that now matters.
A YouGov poll out late last week put Ms Truss 24 points ahead among them.
Many are furious with the ex-Chancellor for knifing Boris Johnson. Bookies say Liz is the firm favourite to be the winner on September 5.
- THE Sun’s Showdown: The Fight for No.10 will be shown on all Sun platforms (thesun.co.uk, youtube.com/thesun) and TalkTV.
- Find TalkTV on Sky 526, Virgin Media 627, Freeview 237, Freesat 217 and Sky Glass 508 and live and on demand on the TalkTV app and at Talk.TV.
