Eye on economy: Sunak wants to tackle inflation and debt, Truss keen on tax cuts

London: Conservative leadership candidate Rishi Sunak wants to tackle surging inflation and Britain's pandemic debts. Rival Liz Truss wants immediate tax cuts.

The economy will be a key battleground in the coming weeks, after Sunak and Truss emerged as the runoff contenders to succeed Prime Minister Boris Johnson.

On taxes

Sunak is vowing to stick with a host of recent tax rises to balance the books following record government borrowing during the Covid pandemic. He has said curbing inflation, which is at a 40-year high, is his priority and criticised Truss's "fairytale" plans on tax.

Foreign secretary Truss has accused Sunak of pulling Britain to the brink of recession, and vowed to "start cutting taxes from day one" including corporation tax paid by businesses. She also wants to review the Bank of England's mandate to set interest rates.

Sunak in May implemented a £15 billion package of support to help Britons through the worst cost-of-living crisis in decades. However, his leadership rivals criticised it as insufficient, with energy prices set to surge anew in October. Truss has vowed to use economic growth fuelled by her promised tax cuts as the primary way to tackle the crisis.

On Brexit
Truss backed remaining in the European Union in Britain's 2016 referendum, before becoming a zealous convert to the Brexit cause. Since December, she has led negotiations with Brussels over subsequent frictions. She is pushing new legislation that would unilaterally rewrite Britain's post-Brexit commitments to the EU over Northern Ireland, which opponents say breaches international law.

Sunak, a rising Tory star in 2016, came out early for Brexit. He has said he backs the proposals on "Northern Ireland Protocol" and, as chancellor, promoted "freeports" around Britain as one way of profiting from Brexit.

On climate
Sunak has vowed to stick with Britain's legally binding targets to reduce carbon emissions to net zero by 2050. He would maintain "green levies" on energy bills earmarked to help the renewable sector grow.

Truss has vowed to scrap the levies, but says she is committed to the 2050 target.