Candidates clash over UK economy

Foreign Secretary Liz Truss and former Finance Minister Rishi Sunak, the two candidates for the Conservative Party leadership, clashed in a televised debate over issues such as the economy or hiring Boris Johnson.

Economy

Truss called the government’s decision to raise taxes “abstractionist” before Sunak’s resignation, warning that paying off the debt incurred during the Covid-19 pandemic would “so quickly damage our economy and cause a recession”.

Taxes

Sunak, who justified the tax increase on the need to fund the public health system and protect the economy during the pandemic, warned that deferring payments on the public debt would “pass the bill to our children and grandchildren to pay for it.” This risks raising interest rates.

successor

A new Tory leader will be announced on September 5, with Boris Johnson handing in his resignation to the Queen the following day. A successor will be invited to form the government without the need for a legislative assembly election.