Rishi Sunak Says Liz Truss’s Plans To Cut Taxes Immediately Are ‘Immoral’

Liz Truss’s plans to cut taxes immediately if she becomes prime minister are “immoral”, Rishi Sunak has said.

In a major ramping up of his attacks on his Tory leadership rival, the former chancellor said the move would require the government to borrow “tens and tens and tens of billions of pounds”, which would have to be repaid by future generations.

He also said he was the “underdog” in the contest and said the “forces that be” want Truss to win.

Sunak made his comments while addressing supporters in Grantham, the birthplace of Margaret Thatcher.

Truss has pledged to reverse the rise in national insurance payments and halt the planned increase in corporation tax – policies introduced by Sunak when he was chancellor.

She has insisted that the £30bn cost of the policies can he paid for from the fiscal “headroom” in the economy.

But Sunak said: “I do believe that it is the wrong approach for the government at this moment to be borrowing an extra tens and tens and tens of billions of pounds at a time when inflation is rising to almost double digits and interest rates are already on the rise.”

He added: “Not only do I think it’s the wrong thing for the economy, I do also believe that it’s immoral because there is nothing noble or good about wracking up bills on the country’s credit card that we then pass on to our children and grandchildren.”

Suggesting that Truss was misleading voters, the former chancellor said: “We can cut more taxes, but only if we defeat the enemy of inflation and that can only happen if we are honest about the ravages it causes.

“We must see the danger in front of us and act – not pretend like it isn’t happening or, more dreadful still, make the situation worse, putting people’s homes and savings at risk.

“I will deliver a lower tax economy, I will deliver tax cuts, but tax cuts you can believe in. I will make that happen.”

The most recent opinion poll of Tory party members – who will decide who succeeds Boris Johnson – suggested Truss is 24 points ahead of her rival.

Sunak said: “Be in no doubt, I am the underdog. The forces that be want this to be a coronation for the other candidate.”

Responding to his comments, a spokesperson for Truss said: “Liz‘s plans for tax cuts will reward people for their hard work and effort, allowing them to keep more of their hard-earned money.

“You cannot tax your way to growth. We have the highest tax burden since the 1940s and as prime minister Liz will take immediate action to prioritise growth and cut taxes.

“We can’t continue with a business-as-usual approach on the economy that is failing to deliver for the British people.”

Chief secretary to the Treasury Simon Clarke, who used to work under Sunak when he was chancellor, also hit out at his former boss, accusing him on Twitter of engaging in “project fear”.

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Liz Truss’s Economic Guru Says Her Tax Plans Will Send Interest Rates Soaring

Liz Truss’s plans to cut taxes would lead to interest rates rising to up to seven per cent, according to her economic guru.

Professor Patrick Minford said higher rates – which would send monthly mortgage repayments soaring – were “a good thing” for the economy.

At the moment, the Bank of England interest rate is 1.25 per cent.

Earlier this week, Truss said Minford supported her plans to reverse the increase in national insurance and halt a planned rise in corporation tax, despite warnings they could lead to higher inflation.

Former chancellor Rishi Sunak, Truss’s rival for the Tory leadership, has insisted that taxes should only come down once inflation is under control.

But in an interview with The Times, Minford said: “If we raise corporation tax we’ll kill off growth.

“It’s crazy to try to begin getting the debt-to-GDP ratio down five minutes after Covid. Borrowing is actually something that allows you to pursue the right policies and not be blown off course by temporary shocks.”

On warnings that tax cuts will lead to higher interest rates to bring down inflation, he said: “Yes, interest rates have to go up and it’s a good thing.

“A normal level is more like 5-7 per cent and I don’t think it will be any bad thing if we got back to that level.”

Minford added: “If you’ve got incredibly low interest rates you kill off savings and create febrile markets with a lot of zombie companies surviving because it costs them nothing to borrow.

“It’s right that a healthy economy should have a decent interest rate. That’s certainly one thing I want to see.”

A Truss campaign source told The Times: “Patrick Minford has no formal involvement in Liz’s campaign.

“Liz’s absolute priority is tackling the cost of living and getting our economy growing faster. We can’t have business-as-usual economic policy.”

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EU Launches Fresh Legal Action Against The UK Over Northern Ireland Protocol Breaches

Brussels has launched fresh legal action against the UK for failing to comply with aspects of the controversial Northern Ireland protocol.

The European Commission said it was bringing four new claims against the UK despite “repeated calls” on the government to implement the agreement on trade between Britain and Northern Ireland.

It comes in addition to infringement claims lodged in response to the UK’s refusal to carry out checks on certain agrifoods.

Relations between the government and the EU were made even worse by the introduction of the Northern Ireland Protocol Bill, which would give ministers the power to unilaterally over-ride key parts of the agreement.

Critics have said that would be a breach of international law, something the government denies.

The commission said in a statement: “Despite repeated calls by the European parliament, the 27 EU member states and the European Commission to implement the protocol, the UK government has failed to do so.

“In a spirit of constructive co-operation, the commission refrained from launching certain infringement procedures for over a year to create the space to look for joint solutions with the UK.

“However, the UK’s unwillingness to engage in meaningful discussion since last February and the continued passage of the Northern Ireland protocol bill through the UK parliament go directly against this spirit.”

The UK has been at loggerheads with the EU over aspects of the protocol — the mechanism that has prevented a hard border on the island of Ireland by keeping Northern Ireland in the single market — since its inception.

This means that goods entering Northern Ireland from mainland Britain must undergo checks.

The government says customs checks are disrupting trade and causing delays, as well as causing problems with those who do not want the province to be treated differently from Britain.

At the core of the Northern Ireland Bill are plans to simplify checks on goods travelling between Britain and the province by creating so-called green and red lanes.

Goods that enter Northern Ireland from mainland Britain, and are destined to stay there, would enter the green lane where there would be no checks and minimal paperwork, which is frustrating businesses.

Goods that move from Britain to Ireland would have to use a red lane, where checks would be applied at Northern Ireland ports. This is so the EU can be certain that goods entering its market are compatible with the its trade rules.

The Northern Ireland protocol bill cleared its final stages in the Commons just days ago by 267 votes to 195 and will be sent to the House of Lords in the autumn.

A government spokesperson said: “It is disappointing that the EU has chosen to bring forward further legal action, particularly on goods leaving Northern Ireland for Great Britain which self-evidently present no risk to the EU single market.

“A legal dispute is in nobody’s interest and will not fix the problems facing the people and businesses of Northern Ireland. The EU is left no worse off as a result of the proposals we have made in the Northern Ireland Protocol Bill.

“We will review the EU’s arguments and respond in due course. ”

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Boris Johnson Says Voters Were Right To ‘Trust’ Him In 2,584 Word Goodbye Essay

Boris Johnson has said he is “proud” of his time as prime minister and that people were right to “trust” him when they voted Conservative in 2019.

In a 2,584 word written statement to parliament published on Thursday, Johnson listed what he saw as his achievements in office over the last three years.

Parliament breaks for its summer recess and when it returns Johnson is due to have been replaced as Tory leader.

Unless there is an emergency during August, the statement is likely to be his last to parliament as prime minister.

“I am proud of our record in office since 2019. I remain determined that we continue to deliver in our final weeks,” he said.

“I know that the Conservative government that follows after us will do what its predecessors have always done and meet the challenges of the day by serving the British people.”

Johnson said his government had “focused relentlessly on delivery” and that the lengthy defence “puts on record why the millions of people who voted Conservative in 2019, many for the first time, were right to place their trust in me”.

The prime minister was removed as Tory leader largely because his own MPs and cabinet said they could no longer trust him.

The PM’s list of achievements, as seen by him, include having “got Brexit done” and having successfully “guided the country” through Covid.

He said his government had “acted on every front” when it came to “bringing down crime, strengthening our health system, sorting out social care and improving our schools”.

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Leak Inquiry Launched Over Briefings Against Penny Mordaunt

The head of the civil service has launched an inquiry into leaks allegedly designed to damage Penny Mordaunt’s leadership campaign.

Simon Case, the cabinet secretary, launched the probe after papers drawn up by civil servants made their way into a Sunday Times story.

The paper claimed the documents suggest she backed watering down the legal process for transitioning when she was equalities minister.

Her team fiercely rebutted the story, saying the contest was being distracted by side issues. Mordaunt’s campaign has been the subject of a number of briefings that she has described as “toxic”.

Case has promised the investigation will be completed “as quickly as possible” given the “importance” of the subject.

David Davis, who is supporting Mordaunt’s run to be prime minister, wrote to the government equalities office demanding to know how the policy paper was released.

In a letter to Tory MP Davis, Case said: “Thank you for your letter of 17 July, raising your concerns about the apparent leaking of information designed to influence the Conservative leadership election.

“I have been very clear in writing with the civil service that it is paramount that public resources are not used to support leadership campaigns during the Conservative Party leadership election.

“Further to that, unauthorised disclosure of government information to the media is clearly inappropriate.

“In light of these facts and the concerns you raise, I can confirm that I have launched a leak investigation into this matter.

“The investigation will be completed as quickly as possible given the importance of the subject.”

Mordaunt herself has accused her Conservative leadership rivals of mounting a smear campaign against her and condemned “toxic” briefings from rival camps.

In response to the original story, Baroness Williams of Trafford, the equalities minister from 2018 to 2020, refuted the allegations, saying: “I feel compelled to issue a statement to challenge the factually incorrect representations put forward by leadership candidates in relation to Penny Mordaunt MP’s position and tenure at the equalities office.

“The events relayed at the hustings and repeated again to the media today in relation to the self-ID debate are completely incorrect.

“As minister for equalities in the department under both Penny Mordaunt and Amber Rudd I saw first hand that the position stated was absolutely not Penny Mordaunt’s and completely refute the allegations made by other candidates about the self ID debate.

“Having sat in the equalities office for many years, I am shocked to see such incorrect reporting and briefings by our colleagues and would question the motives of those seeking to do so.”

Tory MPs voted on the PM’s successor on Wednesday afternoon, with the result announced by Graham Brady, chairman of the 1922 committee of Tory backbenchers, at 4pm.

The final two candidates will then be put to party members to make the final decision, with the winner announced on September 5.

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Theresa May Stages Silent Protest Against Boris Johnson As He Leaves His Final PMQs

Theresa May suggested there was no love lost between her and Boris Johnson on Wednesday when she refused to clap him while he left the Commons.

While almost every Tory MP stood, clapped and cheered as Johnson left the despatch box for his final time as PM, one among them stood out.

Footage from ITV’s Shehab Khan showed that May stayed sitting, even looking the other way as Johnson departed.

After a few seconds, she did stand, and stared after Johnson. Once the benches around her started whistling, she folded her arms and looked on after the prime minister.

May was actually forced out of Downing Street by her own party, much like Johnson, but the two have come to blows in the past.

She appointed him as her foreign secretary back in 2018, although they clashed over Brexit as Johnson repeatedly tried to make her take a more hardline approach with the EU.

May wasn’t the only person who held back from applauding Johnson upon his exit – Labour refused to clap at all.

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Kemi Badenoch Becomes Latest Candidate To Exit The Tory Leadership Race

Kemi Badenoch has been knocked out of the race to succeed Boris Johnson as Tory leader and prime minister.

The former frontbencher received the fewest votes of the four remaining candidates in the contest.

Rishi Sunak once again came out on top, with Penny Mordaunt retaining second place and Liz Truss staying in third spot.

Badenoch won the backing of 59 MPs, up just one from the last round.

Truss got 86, up 15 on the third ballot, Mordaunt was up 10 votes to 92, with Sunak up three to 118.

The fifth and final ballot of MPs will take place tomorrow.

The two candidates receiving the highest number of votes will go into the final run-off, with the winner being decided by the 200,000 Tory members and announced on September 5.

A spokesperson for Sunak’s campaign said: “Rishi has continued to progress today because he is the candidate with the clearest plan to restore trust, rebuild the economy, reunite the country and because he is best placed to beat Labour at the next election.

“Every poll shows only Rishi can beat Starmer, and is the candidate the public think would make the best PM.

“MPs are also recognizing that Rishi has the best experience and plans to deal with the current economic situation.

“Rishi will rebuild our economy by gripping inflation, so we can get our economy growing and unleash the full opportunities of post-Brexit Britain.”

Mordaunt said: “This afternoon colleagues once again put their trust in me and I cannot thank them enough. We are so nearly across the finish line. I am raring to go and excited to put my case to members across the country and win.

“I want to pay tribute to my friend Kemi Badenoch who electrified the leadership contest with her fresh thinking and bold policies.

“She and I both know that the old way of government isn’t working as it should. Voters want change and we owe it to them to offer a bold new vision for this country. Kemi’s passion for this showed and I’m glad she put herself forward to be heard.”

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Factional In-Fighting Under Jeremy Corbyn Left Labour ‘Dysfunctional’, Report Finds

A long-awaited inquiry has found that bitter in-fighting between Labour moderates and Jeremy Corbyn supporters left the party “dysfunctional” and undermined its ability to hold the government to account.

The probe by Martin Forde QC said the party spent more time “occupied by factional differences than working collaboratively to demonstrate that the party is an effective opposition”.

His investigation was ordered by Keir Starmer after the leaking of an internal report into how the party handled accusations of anti-semitism, which laid bare the tensions that existed in the party under its former leader.

The leaked report, which ran to 860 pages, “quickly morphed into a wide-ranging critique of the factional attitude of senior professional party staff to the Jeremy Corbyn leadership”, Forde wrote.

It was pulled together when former general secretary Jennie Formby was in charge and was leaked in full shortly after Starmer became leader in 2020.

The leaked report contained hundreds of private WhatsApp messages between former officials, many of them derogatory, about Labour staff, members and pro-Corbyn MPs.

Among some of the accusations central to the report was that staff opposed to Corbyn deliberately sabotaged the 2017 general election campaign.

But Forde found that while there was an “increasingly bitter and factional rift in the party” there was no evidence to support claims that staff in Labour HQ wanted to the party to “do badly” in the election.

Forde’s report acknowledged that there was a “disagreement” over strategy between Corbyn’s office and the party’s campaigning headquarters but that he had not seen evidence of “bad faith”.

Those in the leader of the opposition’s office (Loto) wished to pursue a more “aggressive” strategy to win more seats, whereas those in the party’s HQ felt there should be a “defensive” strategy aimed at minimising losses and “shoring up” good MPs.

But Forde said: “We find that HQ staff genuinely considered that a primarily defensive strategy would secure the best result for the party, and we have not seen evidence to suggest such a strategy was advanced in bad faith.

“More broadly the evidence available to us did not support claims that HQ staff wanted the party to do badly in the 2017 general election.”

The claim that party staff scuppered efforts to win the 2017 poll was one of several made in the leaked report.

Among the more damaging claims were that party officials used a number of insults to describe senior Black MPs and officials including Diane Abbott, Dawn Butler and Clive Lewis.

And today Forde’s report concluded that MPs of colour and female MPs were “not always treated during the relevant period in the same way as their white/male counterparts — not just in terms of the abuse they received, but in terms of the level of instinctive respect they were afforded within the party and within parliament”.

“It is incumbent on party staff to recognise this failure and to continue to work to ensure that it does not persist,” Forde said.

On racism in the party more widely, Forde found that the “fundamental problem” was that “people who are committed to progressive politics find it difficult if not impossible to accept that they might have acted in a way which was discriminatory”.

He continued: “There seems to us to be a tendency among party staff to believe that they are insulated from the ills of their society — the same dynamic which was, in our view, behind the failure of the elected leadership to countenance that (as lifelong anti-racists) they could be behaving in a way which perpetuated anti-Semitism.

“The evidence clearly demonstrated that a vociferous faction in the party sees any issues regarding anti-Semitism as exaggerated by the right to embarrass the left.

“It was of course also true that some opponents of Jeremy Corbyn saw the issue of anti-Semitism as means of attacking him. Thus, rather than confront the paramount need to deal with the profoundly serious issue of anti-Semitism in the party, both factions treated it as a factional weapon.”

The Forde report found that the disciplinary process in the Labour Party was also “potentially prone to factional interference”.

“We found a disciplinary process not fit for purpose during the period we investigated and therefore one that was potentially prone to factional interference,” he said.

Moving forward, Forde also called for “constructive engagement” with the findings contained in the 138-page review.

“There is a culture of intellectual smugness which exists at the extremes of the political spectrum the party represents. In the past this has led to the dismissal of valid, albeit sometimes uncomfortable, views. It must now come to an end.”

A Labour Party spokesperson said: “The Forde report details a party that was out of control.

“Keir Starmer is now in control and has made real progress in ridding the party of the destructive factionalism and unacceptable culture that did so much damage previously and contributed to our defeat in 2019.”

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Sadiq Khan Accuses Tory Leadership Candidates Of ‘Ignoring’ Climate Change

Sadiq Khan today accused the Tory leadership candidates of “ignoring” climate change as Britain sizzles in record temperatures.

The mayor of London said the country needed a “brave generation of politicians” in parliament, in an interview with HuffPost UK.

“This heatwave is directly linked with the consequences of climate change,” Khan said as the UK hit its hottest temperature on record of 40.2C at Heathrow.

“So rather than tiptoeing around this issue and ignoring it, as those running to be the Tory leader have done, we should be talking about it more with a sense of urgency.”

The criticism falls as the Tory leadership debate has focused on tax cuts and culture war issues, rather than the climate.

Cabinet minister Alok Sharma, who led last year’s landmark Cop26 UN climate summit, intervened in the Tory leadership race, suggesting to The Observer he might resign if the incoming PM fails to commit to a strong agenda on the climate crisis.

Mayor of London Sadiq Khan with Rosamund adoo-kissi-debrah, CEO of the Ella Roberta Family Foundation.
Mayor of London Sadiq Khan with Rosamund adoo-kissi-debrah, CEO of the Ella Roberta Family Foundation.

James Manning – PA Images via Getty Images

Meanwhile, Conservative MP Chris Skidmore has suggested Tory party members care little about hitting “net zero” carbon emissions by 2050 “because 90 per cent of them will be dead”.

Skidmore admitted a survey which put the climate emergency at the bottom of the list for the people who will choose the next prime minister is “rather depressing” in the Independent.

Leadership candidate Kemi Badenoch has previously branded the 2050 net zero commitment “unilateral economic disarmament” and vowed to axe it if elected.

At a hustings event on Monday she appeared to reverse her view before performing another U-turn on TalkTV that evening suggesting there were “circumstances” she would delay it. The three other remaining leadership candidates have all backed net zero.

Rosamund Adoo-Kissi-Debrah, whose daughter Ella was nine years old when she suffered a fatal asthma attack in 2013 linked to severe air pollution, has also criticised Conservative leadership hopefuls for dismissing green issues.

Khan added: “I break down politicians into three areas: climate change deniers, climate change delayers and climate change doers.

“And this heatwave should make us all want to be climate change doers, rather than delayers or deniers.”

He added: “This heatwave, caused by climate change, should be a wake up call for all of us – including those running to be the leader of the Conservative Party.

“It’s heartbreaking, in my view, to see the Tories being in denial about this issue.

“I mean, just to think about one of the candidates talking about 2060, 2070, the other candidates being lukewarm at best about the issue of tackling climate change. That is not the sort of leadership we need.”

He added: “It was Conservative politicians in the 1950s during the Great Smog who made the brave decision to close down power stations in the centre of our cities – think of Battersea Power station, think of the Tate Modern, because then you could see the poison.

“The problem is you can’t see the invisible killer, but you can feel the heat.

“What we want to see is a brave generation of politicians in parliament now, tackling climate change and air quality.”

The mayor made the comments as he hosted a climate solutions summit in London’s City Hall.

A woman use portable fan as heatwave hits London, United Kingdom on July 18, 2022.
A woman use portable fan as heatwave hits London, United Kingdom on July 18, 2022.

Anadolu Agency via Getty Images

Transport for London released figures that show the expansion of Khan’s ultra-low emission zone appears to have reduced toxic air levels in the suburbs.

They found that roadside levels of nitrogen dioxide in central London were now 44 per cent lower than they would have been had the Ulez not been introduced.

However, the Evening Standard suggested the bulk of the benefits were attributable to the original central London zone which launched in April 2019.

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Boris Johnson’s Account Of Partygate Was ‘More Fictional Than Reality’ – Tom Tugendhat

Tom Tugendhat today said Boris Johnson’s account of partygate was “more fictional than reality”.

The Tory leadership hopeful skewered the prime minister over his account of the scandal that led to the downfall of his administration.

However, the MP for Tonbridge and Malling dodged a question about whether he would serve in the cabinet of a prime minister who had broken the law.

In the first TV debate on Friday night, Tugendhat received a round of applause when he flatly said Johnson was not an honest man.

It set him apart from his rivals who were unable to give a straight verdict on the prime minister’s integrity.

Asked what Johnson had been dishonest about on the BBC’s Sunday Morning show, Tugendhat said: “We wouldn’t have been having that debate on Friday night had the others not agreed with me.

“We know very well the others agree with me because otherwise they wouldn’t have resigned from his government, they wouldn’t be standing as leadership candidates.”

Pressed on what Johnson had been dishonest about, Tugendhat replied: “It’s perfectly clear that the alignment of stories that he came to on the partygate scandal seems to have been rather more fictional than reality.”

Asked if he would work for a prime minister who broke the law, Tugendhat said: “I’ve been very clear about my policies on all of this. I think that what we need to be doing is making sure that we bring about integrity into politics.

“And that’s why I’ve spoken about bringing back a ministerial standards commissioner.”

Pressed on the matter, Tugendhat suggested presenter Sophie Raworth was trying to “have a go” at Rishi Sunak who received a partygate fine.

Pushed again, he replied referring to the current prime minister: “Well, I haven’t worked for this one.”

His critics say Tugendhat cannot get the numbers to be PM and is instead in the running for a cabinet position in the next administration.

It comes after the government was accused of hiding how much taxpayers spent on legal advice for officials accused in the partygate scandal.

The Government Legal Department – an in-house legal organisation – has refused to even confirm or deny if their lawyers advised those being investigated by the police.

Meanwhile, Johnson has been told to hand over a huge number of documents including his diaries to MPs investigating whether he lied to parliament over partygate.

Tory MPs hope to have reduced the search for Johnson’s successor, due to be announced on September 5, to two possibilities in the coming days.

Monday will see the third round of voting with the aim of whittling down candidates to the final two by Thursday, before the summer recess.

The final two will then go forward to a postal ballot of party members.

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