Here is a summary of today’s events.
- Penny Mordaunt has publicly declared she is backing Liz Truss to become the next leader of the Conservative party. She made the announcement in a speech during hustings in Exeter tonight. Truss said of Mordaunt: “She’s a great person, she’s a great politician, she’s a great patriot and I’m proud to call her my friend.’’
- During the hustings Liz Truss hit out at Nicola Sturgeon saying she is an “attention seeker” and should be “ignored”.
- Rishi Sunak says he was loyal to Boris Johnson, but their differences on economic policy and the government being on the “wrong side” of an ethical issue meant he had to resign.
- Earlier today, Truss said she would stop taxes that discourage people from eating unhealthy foods and scrap the ban on ‘buy one, get one free’ offers on junk food.
- Truss has pledged to “unleash British farming” through deregulation.
- Britain’s House of Commons foreign affairs committee is planning a visit to Taiwan later this year.
- Russia’s foreign ministry has announced new sanctions against 39 officials, businesspeople and journalists from the UK, including Keir Starmer and David Cameron.
- Boris Johnson has ruled out an extra bank holiday to celebrate the Lionesses’ victory in the Women’s Euro.
- Sam Tarry, the shadow transport minister sacked by Keir Starmer for comments made on a rail picket line, said it was “great to see” Lisa Nandy visiting striking communications workers today.
- Liz Truss has insisted she is running a “positive” leadership bid as allies tried to distance her campaign from the decision by culture secretary, Nadine Dorries, to share a tweet showing Rishi Sunak wielding a knife at Boris Johnson.
- A new Ipsos poll shows Rishi Sunak and Keir Starmer tied amongst the public in terms of who would make the most capable prime minister. Liz Truss trails Starmer by six points on the same measure. Meanwhile, Labour has increased its lead over the Conservative party among the public.
- David Trimble’s funeral took place today in Lisburn. Boris Johnson, and other political representatives from London, Dublin and Belfast attended the service to bid farewell to Northern Ireland’s inaugural first minister.
- York and North Yorkshire are to elect a mayor and receive £540m of government investment over 30 years in a landmark devolution deal.
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That is the end of tonight’s leadership hustings in Exeter. The next hustings will be on Wednesday 3 August in Cardiff.
One questioner asks about loyalty saying “you weren’t loyal to Boris Johnson”.
Sunak says: “I respectfully disagree. I was loyal to Boris Johnson over the two and a half years.”
He says in the end not only were they “not on the same page” with regard to economic policy, but the government was on the “wrong side” of an ethical situation.
He says: “It wasn’t just me”, adding that “60 others resigned”.
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A question on migration.
Sunak says: “Our country is unbelievably special and has compassionately welcomed people like my family. But alongside that it is also absolutely right that we have control over our borders.
“All of you are forking out £5m a day on hotels for people who are coming here illegally and that has to stop.”
He says he believes in the Rwanda policy but adds there are some legal changes that need to be made.
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A question on the elderly population and social care from an audience member. The woman asking the question went back to work during the pandemic working in elderly care. She asks: “Are you listening to the state that elderly care is in? We need help now?”
Sunak says social care provision needs to be improved and workers need to feel “valued and fulfilled”.
He says we cannot have the NHS “gobbling up” all the money and social care being the poor cousin.
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In the quickfire round of questions from Sebastian Payne, Sunak is asked what one public perception about him is wrong.
He responds that it is the perception that he is not in favour of change.
“I want to radically change things,” he adds. He cites his “ripping up the rule book” during the pandemic as evidence of this.
In another life, he said if he could run Southampton FC he would be “a very happy man”.
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Sunaks says: “I want to improve the conduct of government. That is the change that I want to bring as prime minister.”
Asked why he stuck by Boris Johnson for so long, Sunak said he wanted “to make it work” and give Boris Johnson “the benefit of the doubt”.
Sunak says we need to unlock brownfield sites and build new homes. He also advocates more flat-pack housing because it is “faster and cheaper”.
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Sunak says he is the “change” candidate. He adds: “At the crunch moments, where was I? I supported change and I supported Brexit. I believed in my principles then and I believe in my principles now.”
Rishi Sunak is now taking questions from Sebastian Payne and the audience.
Truss is asked about Scotland and whether there should be another independence referendum. She says: “No, no, no.”
Truss adds: “The best thing to do with Nicola Sturgeon is to ignore her. She is an attention seeker. That is what she is.”
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One questioner asks about the Online Safety Bill and that it is not fit for purpose and is a danger to free speech. Would she scrap it?
“We do need to protect the under-18s from some of the content online,” Truss says.
She adds: “When people are grown adults they should be able to speak freely. I would be making sure that we protect free speech.”
Asked if she would order another lockdown, Truss says she wouldn’t. On the government’s Covid strategy, she said she wasn’t part of the “key Covid committee” and “wasn’t a key part” of the Covid decision-making process.
Truss adds: “My vision is bold, it is different, but it is needed.”
Truss is asked whether the Treasury should be broken up.
“I wouldn’t want to give them advance warning,” Truss says.
She adds it needs to change and it has been a “block” on getting things done. “I’m prepared to break eggs to make an omelette.”
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Sebastian Payne asks Truss which opposition leader she most respects?
She replied: “Rosie Duffield ... because she stood up ... and said “women are women”.
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Truss says things will take ‘less time under my government”. She adds: “We need spades in the ground before the next election.”
She also says she will “move faster with nuclear” and introduce a moratorium on the green levy, which she says will help people struggling with fuel bills.
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Truss says she would have Sunak on her team.
More from Rishi Sunak’s speech has spoken of “reuniting our country” and says winning the general elections starts with “winning back Tiverton and Honiton”.
He says he will channel the energy he displayed during the pandemic if he becomes leader of the Conservative party and therefore prime minister.
He adds he will “give you my everything, my heart and soul” if he becomes leader of the Conservative party.
Liz Truss is asked about claims that Penny Mordaunt was “workshy”, Truss swerves this and says she is “delighted” Mordaunt is backing her. Earlier she had said: “She’s a great person, she’s a great politician, she’s a great patriot and I’m proud to call her my friend.’’
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Rishi Sunak takes to the podium and refers to his family and how “the best way to transform lives is through education”. He cites the “Conservative values of patriotism, service, family, hard work aspiration.”
He refers to wanting a “Britain built on aspiration, hard work and hope”.
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Dr Liam Fox takes to the podium and says Rishi Sunak “took vital decisions” during the pandemic.
“We will need a leader with courage, experience and intellect and the downright decency to capture swing voters,” he adds.
Delighted to be at the @Conservatives Leadership Hustings in Exeter to support @RishiSunak. #Ready4Rishi @Ready4Rishi pic.twitter.com/DuSWfI3KaT
— Dr Liam Fox MP (@LiamFox) August 1, 2022
Truss adds: “I will channel the spirit of the lionesses.” She refers to the “plastic patriot Keir Starmer”.
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Truss says: ”I know a woman is a woman. I will protect single-sex spaces.”
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Lis Truss has insisted she is a “fighter” and will help the Tories win back the Tiverton and Honiton seat. “I want to be an aspiration nation,” she adds.
Liz Truss says it is “fantastic” to have the support of Penny Mordaunt, calling her a “great person, a great friend and great patriot.”
Penny Mordaunt publicly backs Liz Truss for leader of the Conservative party
Penny Mordaunt takes to the podium and has come out to back Liz Truss.
“I’ve seen enough to know who the person I’m going to put my faith in is. And that is Liz Truss.”
She adds: “She, for me, is the hope candidate.’’
“I could have remained undeclared. I could be off sipping piña coladas right now. But I’m not. I’m here with you, because this is too important. And I’m not going to leave this to chance.”
She added: “I came third in this contest. I owe it to all of you to be a signpost, not a weathervane. So, I’ve made my choice. And I know it’s difficult, because I like both candidates.
“They are both good Conservatives who love their country. And they’ve both done what they thought was right for the right reasons.”
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Sebastian Payne, Whitehall editor of the Financial Times, is hosting the hustings.
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Penny Mordaunt backs Liz Truss, reports say
Former Tory leadership contender Penny Mordaunt has come out to back Liz Truss, Talk TV reports.
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Rishi Sunak has also sent out a message to party members, with the help of William Hague.
Today is #YorkshireDay.
— Rishi Sunak (@RishiSunak) August 1, 2022
I couldn’t be prouder to have the support of my Richmond constituency and, in particular, the backing of my friend, mentor and one of Yorkshire’s greatest statesmen.
Watch @WilliamJHague below 👇 pic.twitter.com/XoSQfkf1zO
Liz Truss has sent out a message to Conservative party members.
In the letter, she says: “We cannot continue to have business as usual, and I have a bold plan to get our economy back on track.”
She adds: “I will lower taxes to spark economic growth and reward people for working hard.”
As ballots begin to drop this week, this is my message to you, @Conservatives Party Members 👇 pic.twitter.com/zJiwbCqde0
— Liz for Leader (@trussliz) August 1, 2022
Rishi Sunak and Liz Truss to face Tory members in latest hustings in Exeter
Rishi Sunak and Liz Truss are due in Exeter for the latest Tory leadership hustings at 7pm.
Conservative party members get another chance to question the top two candidates to replace Boris Johnson on the day ballots for the contest were sent out.
About 160,000 party members will choose who will be the UK’s next prime minister. You can watch Sunak and Truss face some of them in our live stream here (it will go live shortly before 7pm BST) or at the top of this blog.
Liz Truss has said she would stop taxes that discourage people from eating unhealthy foods and scrap the ban on ‘buy one, get one free’ offers on junk food.
In an interview with The Mail+ she added if she became prime minister there would also be no new taxes on products high in fat, sugar or salt.
“There is definitely enough of that… Those taxes are over,” she said.
“Talking about whether or not somebody should buy a two for one offer, no.”
She insisted that “what people want” from the government is to deliver “good roads, good rail services, making sure there’s broadband, making sure there’s mobile phone coverage, cutting the NHS waiting lists, helping people get a GP appointment”.
She added: “They don’t want the government telling them what to eat.”
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Liz Truss has insisted she is running a “positive” leadership bid as allies tried to distance her campaign from the decision by the culture secretary, Nadine Dorries, to share a tweet showing Rishi Sunak wielding a knife at Boris Johnson.
Truss said she had been “very clear” with her team about the type of campaign she wanted to run.
She said:
I’ve taken Twitter off my phone for the duration of this campaign.
I’ve been very clear with all of my team, I’m running a positive campaign. This is about growing the economy, it’s about unleashing the potential right across the UK.
Britain’s House of Commons foreign affairs committee is planning on a visit to Taiwan later this year – probably in November or early December – despite rising tensions in the region, the Guardian has learned.
Sources say that the trip – which was originally scheduled for early this year but was postponed due to one member of the delegation testing positive for Covid – was intended to show Britain’s support for the democratically run island, which China considers its own.
The planned trip comes as London’s relationship with Beijing continues to deteriorate. Last week, both Conservative leadership candidates, Liz Truss and Rishi Sunak, articulated their tough positions on China. And China’s ambassador to the UK accused some British politicians of “peddling the fallacy of the so-called China threat” in a video remark.
Tensions have been on the rise in the Taiwan Strait in recent weeks after reports of a possible trip to Taipei by the US House speaker, Nancy Pelosi. Beijing has repeatedly warned against such a move and has threatened to take “decisive actions” if the trip goes ahead. Pelosi is now on a trip to Asia, where she has scheduled stops in Singapore, Malaysia, Japan and South Korea.
Read the full article by my colleague Vincent Ni here:
Russia announces sanctions against Starmer and Cameron
Russia’s foreign ministry has announced new sanctions against 39 officials, businesspeople and journalists from the UK, including Keir Starmer and David Cameron.
In a statement, the ministry said sanctioned individuals were barred from entering Russia for supporting the “demonisation” of Russia and its international isolation.
The ministry added:
Given London’s destructive drive to spin the sanctions flywheel on far-fetched and absurd pretexts, work on expanding the Russian stop-list will continue.
From my colleague Pjotr Sauer:
Russia has banned 39 more British journalists and politicians from entering the country, including Starmer, Cameron and Piers Morgan pic.twitter.com/BaCcpSydCx
— Pjotr Sauer (@PjotrSauer) August 1, 2022
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Liz Truss has claimed that Rishi Sunak’s plan to increase corporation tax would stifle growth and trigger a recession.
On a campaign visit in Devon, Truss said:
You know what a recession means, it means people losing their jobs, it means a lack of opportunity, it means more difficulties with the cost of living.
She added:
We have to avoid that, we need to get growth and that’s why it’s important that we keep taxes low.”
A new Ipsos poll shows Rishi Sunak and Keir Starmer tied among the public in terms of who would make the most capable prime minister.
Liz Truss trails Starmer by six points on the same measure – although all of them fare significantly better than Boris Johnson.
Sunak has a slight advantage among the public at large and among Conservative voters in terms of being seen as “having what it takes to be a good prime minister”, but Truss has reduced the gap among Tory supporters.
NEW Who would make most capable PM?
— Ben Page (@benatipsos) August 1, 2022
Johnson 31%
Starmer 51%
Sunak 39%
Starmer 39%
Truss 35%
Starmer 41%
Fieldwork July 21-27
NB no-one knows about how hypothetical leaders will actually perform until they are in office..
Meanwhile, Labour has increased its lead over the Conservative party among the public.
NEW from @IpsosUK / @standardnews.
— Keiran Pedley (@keiranpedley) August 1, 2022
🚨Labour lead at 14 🚨
Lab 44 (+3)
Con 30 (nc)
Lib Dems 10 (-5)
Green 8 (+2)
Other 8 (nc)
Fieldwork July 21-27. Changes from June.
But there is a catch...
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Boris Johnson has ruled out an extra bank holiday to celebrate the Lionesses’ victory in the Women’s Euro.
A No 10 spokesperson said there are “no plans” to add a new bank holiday but that the PM would back honours for the Lionesses.
The spokesperson said:
Obviously we all want to celebrate the Lionesses’ win, but there are no plans to change the current pattern of public bank holidays.
Told by two sources Nandy didn't "get permission" from Loto to go and meet CWU workers - she told them in advance as a courtesy. Other shadow ministers interpreting essentially that if you go, and don't go big on promoting yourself then it's fine.
— Jessica Elgot (@jessicaelgot) August 1, 2022
David Trimble faced bitter opposition from across the political spectrum during his life but his funeral has united British, Irish and Northern Irish leaders in paying tribute to his accomplishments and sacrifice.
The service in Lisburn on Monday brought together the British prime minister, Boris Johnson, and other political representatives from London, Dublin and Belfast to bid farewell to Northern Ireland’s inaugural first minister.
It was a rare gathering and show of solidarity – and a truce in current political tensions – to honour Lord Trimble, an architect of the 1998 Good Friday agreement and a former Ulster Unionist party (UUP) leader, who died last week aged 77.
Ireland’s president, Michael D Higgins, and taoiseach, Micheál Martin, joined Northern Ireland’s party leaders at Harmony Hill Presbyterian church, a name both apt and ironic given Trimble’s torrid time as a peacemaker.
Read the full article by my colleague Rory Carroll here:
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Asked by reporters if Chris Pincher should resign his seat in the Commons, Rishi Sunak said he would quickly reappoint an independent adviser “to make sure that ministers and the government are held to account for their behaviour”.
Pincher has refused to resign as MP for Tamworth after he drunkenly groped two men at a private members’ club in London’s Piccadilly. He now represents the constituency as an independent after being suspended by the Conservative party.
Sunak said:
I think trust is really important and standards are really important in public life. I think honesty is important. And that’s why in this leadership campaign, even though it’s not easy for me, I want to be honest about some of the challenges we face and what’s going to be required to fix them.
Sacked shadow minister praises Lisa Nandy for joining strikers on picket line
Sam Tarry, the shadow transport minister sacked by Keir Starmer for comments made on a rail picket line, said it was “great to see” Lisa Nandy visiting striking communications workers today.
Tarry was sacked by Starmer last week for giving multiple interviews on a picket line at Euston in London with striking RMT workers – where he suggested they deserved pay rises in line with inflation.
Tarry tweeted:
Senior Labour politicians need to demonstrate loud and clear that our party is on the side of ordinary working people who are fighting back against this anti-worker government.
Great to see @lisanandy on the picket line.
— Sam Tarry MP (@SamTarry) August 1, 2022
Senior Labour politicians need to demonstrate loud and clear that our Party is on the side of ordinary working people who are fighting back against this anti-worker Government. 🌹 https://t.co/a553BF8Udg
Starmer has previously told shadow frontbenchers they should not join picket lines for strikes, arguing that Labour should be a party of government. Nandy is understood to have told the leader’s office in advance that she planned to visit Communication Workers Union (CWU) workers from BT and Openreach striking in her Wigan constituency.
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Sunak also downplayed growing cabinet support for Liz Truss, telling reporters:
You have to remember that actually in the parliamentary stage of this contest I topped the ballot in each and every round, with more support from MPs than any other candidate.
He said “lots more people” have come on board to back him since the close of that ballot, adding:
So actually I feel very confident that there’s an enormous amount of support, in fact the most support in a parliamentary party, for my candidacy.
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Rishi Sunak said his plan to cut income tax by 20% by the end of the decade was “one of the most far-reaching cuts to income tax that we’ve seen” and would be done “responsibly over time”.
The former chancellor told reporters in Devon that as prime minister, he would cut VAT on energy bills “to provide a little bit of extra help for people over the autumn and winter” as bills would be “higher than we thought”.
Sunak described his proposed plan to cut income tax to 16p by the end of the next parliament as “radical”, adding:
We’ll do that responsibly over time, continuing to reduce our borrowing. And we’ll do it by growing the economy, taking advantage of our Brexit freedoms, and getting our businesses to invest more and innovate more through the tax reforms that I’m going to put in place.
The shadow levelling up secretary, Lisa Nandy, has attended BT workers’ picket line despite Keir Starmer’s ban on frontbenchers supporting strikes.
Nandy was photographed at a Communication Workers’ Union (CWU) picket line in her constituency, days after Starmer sacked Sam Tarry as a shadow transport minister for doing broadcast interviews from a rail strike picket line – although his presence there was not given as the reason.
As my colleague, Jessica Elgot, points out, one way Labour frontbenchers can potentially navigate Starmer’s policy is to argue that they’re attending the picket line to listen to workers.
Shadow levelling up secretary Lisa Nandy in Wigan today...
— Jessica Elgot (@jessicaelgot) August 1, 2022
A way Labour frontbenchers can potential navigate the picket line ban - they can argue it's a visit to listen to workers if they don't hold a placard or do broadcast interviews. But it's definitely a statement... https://t.co/WNrmyCCfH2
A No 10 spokesperson said Boris Johnson would “definitely” want the Lionesses to receive “the recognition they rightly deserve” after their triumph at the women’s Euros final.
Asked if the PM will support damehoods for the team following their win, Johnson’s official spokesperson added:
On honours specifically, there is obviously a process that is a matter for the independent honours committee, but clearly the public want to see (the) Lionesses receive recognition.
Johnson will be going on holiday from Wednesday until the end of the week, Downing Street added.
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The business secretary, Kwasi Kwarteng, has promised that legislation coming into force on Monday will have an “immediate dissuasive effect on oligarchs attempting to hide their ill-gotten gains, ensuring that the UK is a place for legitimate business only”.
However, a string of lawyers, tax experts, MPs, accountants and transparency campaigners are warning that the long-awaited register of overseas entities, which was sped through parliament after Russia’s invasion of Ukraine, is “riddled with flaws and loopholes” and will have no impact on forcing corrupt oligarchs to reveal which UK mansions they own.
The register is intended to, in the government’s words, “flush out corrupt elites laundering money through UK property” by forcing secretive overseas companies to reveal the true owner or risk “tough fines”, or even up to five years in prison.
The Labour MP Margaret Hodge, who has long campaigned for a crackdown on secretive overseas ownership of UK property, complained that the register was “more lead balloon” than the “silver bullet we were promised would stop abuses like money laundering in our real estate sector”.
Read the full article by my colleague Rupert Neate here:
More from the work and pensions secretary, Thérèse Coffey, who said Liz Truss’s campaign had nothing to do with an image circulating on social media showing her rival, Rishi Sunak, stabbing Boris Johnson in the back.
Speaking to Times Radio this morning, Coffey, who is Truss’s campaign manager, said Nadine Dorries “chose” to retweet the doctored image depicting Boris Johnson as Julius Caesar about to be stabbed by a knife-wielding Sunak.
Coffey said:
Well, I wouldn’t have done it. The Liz for Leader campaign certainly didn’t do it. Nadine chose to do it. I’ve made her aware that many colleagues were upset by it.
She added:
It’s for Nadine to decide how she runs her social media. But all I say is that I’m really here to focus on Liz rather than other news.
She also said:
I’m not going to go into individual conversations, but she recognised that other people would have been upset by some of this, but she’s very keen to make the case herself.
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Asked which victory she was more confident of, the Lionesses or Liz Truss, Thérèse Coffey said “they both have my full confidence”.
The work and pensions secretary told LBC:
We were at the home of football and football came home with the Lionesses. I was there with Liz and we had a great time, cheering on the Lionesses, who really uplifted the mood of the nation and what a great tournament it’s been.
Truss attended the Women’s Euros final yesterday at Wembley on behalf of the government while her rival was pictured watching the match in a pub in Salisbury, Wiltshire, after meeting Tory party members on the campaign trail.
Boris Johnson posted a photo on Twitter showing him watching the Lionesses’ dramatic 2-1 victory over Germany at home with his children.
We are all gripped here watching the @Lionesses!
— Boris Johnson (@BorisJohnson) July 31, 2022
Come on England! pic.twitter.com/QKeN0uluyB
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York and North Yorkshire are to elect a mayor and receive £540m of government investment over 30 years in a landmark devolution deal to be signed today.
The agreement will create a new combined authority across the region led by a directly elected mayor, who will have the power to spend the money on local priorities such as transport, education and housing.
It is the first city and rural region to see devolution on the scale enjoyed by city regions such as South and West Yorkshire, according to the Department for Levelling Up, Housing and Communities. The unveiling of the plan coincides with Yorkshire Day.
Residents will elect a mayor in May 2024 if the proposed deal becomes reality.
Read the full story here:
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The work and pensions secretary, Thérèse Coffey, was speaking to LBC’s Nick Ferrari earlier, when she was asked about Rishi Sunak’s plans to introduce a £10 fine for patients who miss GP and hospital appointments.
Coffey, who is backing Liz Truss, replied:
This idea has been rolling around for a long time and I think there’s a reason why it hasn’t been brought into place in the past.
She added:
I think putting the onus on doctors to fine their patients, I’m not sure many doctors would want to do that, quite candidly. It’s important we treat people.
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Truss pledges to ‘unleash British farming’ through deregulation
Liz Truss has promised to “unleash British food and farming” in order to improve the country’s food security and “remove onerous EU regulations and red tape” if she becomes prime minister.
The Tory leadership candidate did not go into much detail on which laws she would abolish but vowed to tackle the labour shortages in farming with a short-term expansion to the seasonal workers scheme.
It comes after a recent government report warning that labour shortages “caused by Brexit and accentuated by the pandemic” were badly affecting the food and farming sector, often forcing farmers to leave fruit rotting in the fields and cull healthy pigs.
Truss said she would work to address longer-term skills shortages and hurdles to the adoption of labour-saving technologies.
She also promised to replace EU law that restricts the development of farming infrastructure and technology, including agricultural drone use and precision breeding technologies.
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Sunak’s latest policy pledge was described as “another U-turn” by a Truss campaign source, after the former chancellor recently promised to cut VAT on energy bills, a policy he rejected in office.
A Truss campaign source said it was “a shame” Sunak had put up taxes rather than cut them as chancellor and “the public and Conservative party members can see through these flip flops and U-turns”.
People “need tax cuts in seven weeks, not in seven years”, the source said.
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Asked about accusations that he is a “backstabber”, Sunak argued that the government had “found itself on the wrong side of a very serious ethical issue”.
Speaking on BBC Radio 4’s Today programme, he said:
I’m not going to comment specifically what others are choosing to say, but I will tackle the broader claim that they relate to, because I do think there is a risk that people are looking at the last few months of the government with slightly rose-tinted glasses about what it was really like.
Because it wasn’t working as it should, and crucially the government found itself on the wrong side of a very serious ethical issue, and, for me, also going down the wrong economic path, and that’s why in the end more than 60 MPs at the last count, I think, resigned from the government, of which I, after a lot of deliberation and months of standing by the PM, I was one of them.
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Here’s a bit more from Rishi Sunak, who was speaking on BBC Radio 4’s Today programme earlier. Asked about spending on tax cuts and dealing with the NHS, Sunak replied:
We can do both, so if you look at the projections for the economy that are already out there, it’s perfectly affordable to keep cutting income tax over time whilst growing public spending at a disciplined level and reducing our borrowing.
He rejected accusations from his successor as chancellor, Nadhim Zahawi, of being a “doomster” on the economy as “rather amusing”.
Sunak added:
It’s my opponent in this contest who wants to stick with the failed orthodoxy of having these ultra-low corporation tax rates and, you know what, they don’t work in increasing business investment in this country – we’ve tried it for a decade.
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Sunak vows to take 4p off income tax within seven years
Rishi Sunak has committed to taking 4p off income tax within seven years if he becomes prime minister, in a last-ditch attempt to win over Conservative party members as postal ballots begin dropping on doormats.
The former chancellor insisted his “radical but realistic” plan was consistent with his record in office and his leadership campaign, despite having strongly criticised his rival for promising “morally wrong” tax and spending plans which would increase borrowing.
Cutting the basic rate from 20p in the pound to 16p would amount to a 20% tax reduction, the “largest cut to income tax in 30 years”, Sunak claimed.
He said the 20% reduction would be funded by “additional tax receipts generated by forecast economic growth”, and promised to not increase government debt to cover the cost.
Sunak’s proposed plan to cut income tax to 16p by the end of the next parliament would cost about £6bn a year. Speaking on BBC Radio 4’s Today programme, he said his income tax proposal was “perfectly affordable” and that he wanted to cut income tax in a way that was “responsible” by making sure it could be paid for, and is done so alongside economic growth.
Sunak added:
I don’t think embarking on a spree of excessive borrowing at a time when inflation and interest rates are already on a rise would be wise.
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Nadhim Zahawi formally backs Liz Truss
Nadhim Zahawi, the chancellor, has formally endorsed Liz Truss in the Tory leadership race, as Conservative party members begin to receive their ballots for the final leadership vote today.
Zahawi became the latest senior Tory to throw his weight behind the frontrunner, praising Truss’s “booster” economic approach in The Daily Telegraph and saying she would “overturn the stale economic orthodoxy and run our economy in a Conservative way”.
Zahawi wrote in the paper:
Liz understands that the status quo isn’t an option in times of crisis. To quote the excellent economist Sam Bowman, we need a ‘booster’ attitude to the economy, not a ‘doomster’ one, in order to address cost-of-living woes and the challenges on the world stage.
Liz will overturn the stale economic orthodoxy and run our economy in a Conservative way.
Welcome to today’s Politics Liveblog. I’ll be covering for Andrew Sparrow today. Do drop me a line if you have any questions or think I’ve missed anything. My email is leonie.chao-fong@theguardian.com.
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