Liz Truss says a recession can be averted, while Rishi Sunak argues tax cuts would fuel inflation
Mr Sunak, who has trailed in recent polls, has repeatedly said he would prioritise bringing down inflation before cutting taxes if he became prime minister.
Ms Truss reiterated her pledge to immediately reverse April's increase in National Insurance and cut other taxes, which she claimed would stimulate economic growth and prevent a recession. He told Sky News there was a "strong argument" interest rates should have been raised "slightly sooner". While the governor of the Bank of England gave a sombre press conference, the candidates to be the next prime minister were preparing for their next turn in a TV studio.Liz Truss claimed the tax levels Rishi Sunak advocates will lead to recession, not growth; Rishi Sunak claimed Liz Truss' plan to cut taxes will exacerbate inflation and prolong economic pain.
Despite trailing in many polls of members, Mr Sunak appeared to win the most support among the Sky News audience members in a show of hands.
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