After the last televised leadership debate was cancelled when Liz Truss and Rishi Sunak pulled out, we asked the remaining three candidates if they would come on SpectatorTV to face questions before Tory MPs’ final vote. (Since going to press the contenders will have been whittled down to two.) This is an edited transcript of their answers.
Do you propose tax cuts? If so, how would you pay for them?
PENNY MORDAUNT: On the current trajectory Rishi’s set us on, we are going to be one of the most uncompetitive nations in the OECD and that cannot be allowed to happen. We have to be able to compete. So there will need to be some changes. But exactly what – and when – is not the issue for this contest.
LIZ TRUSS: Raising taxes will choke off growth and make it harder for us to pay our debt back. I propose reversing the National Insurance increase. I also don’t want to increase corporation tax because we need to attract the investment to drive business and growth right across our country. I’d also have a temporary moratorium on the green levy, cutting money from people’s energy bills. The taxes that I’m cutting cost £30 billion. It can be paid for within the existing fiscal envelope. But my tax cuts will actually help grow the supply side of the economy, relieving inflationary pressures. The best way to control inflation is via monetary policy. I want to see a tougher Bank of England mandate in the future while keeping the Bank independent. The Bank of England mandate was last set in 1997 – in completely different economic times. What I’m saying is we need to look at it again and make sure it’s fit for purpose and benchmark it against international independent banks.
RISHI SUNAK: Inflation makes everybody poorer.
Comments
Join the debate for just £1 a month
Be part of the conversation with other Spectator readers by getting your first three months for £3.
UNLOCK ACCESS Just £1 a monthAlready a subscriber? Log in