Tory leadership – live: Truss tax cuts risk 1970s-style inflation, economists warn

Northern Ireland Secretary Shailesh Vara has declined to say whether he is backing Rishi Sunak or Liz Truss to be the next leader of the Conservative Party.

Speaking to media in Lisburn, Co Antrim, Mr Vara said he believes they are “both excellent candidates”.

“Whoever is the ultimate winner will, I’m sure, serve the United Kingdom very well,” he said.

“With both of them I have raised the issue of Northern Ireland and the importance that they place upon the people here and they have made it absolutely clear to me that Northern Ireland is uppermost there and they want to make sure that they get the Executive up and running and that we can move forward so that Northern Ireland, along with the rest of the United Kingdom, benefits from everything that is going in terms of economic development and prosperity.”

Conservative leadership candidate Liz Truss’ plan to bring in immediate tax cuts is likely to push up prices and risks a return to 1970s-style inflation, top economists have warned.

The foreign secretary has pledged to bring in tax cuts of at least £30bn if she becomes prime minister, claiming on Thursday: “My tax cuts will decrease inflation.”

Vowing to take on Treasury “orthodoxy” and the economic consensus, the new favourite in the Tory contest insisted that her plan to cut taxes was “not a gamble” and would not drive up soaring inflation even further.

However, Dr Jo Michell, associate professor of Economics at UWE Bristol, told The Independent that Ms Truss was wrong to claim tax cuts would bring in inflation down.

Read more on this story from our political correspondent, Adam Forrest:

The EU is hopeful a change in UK prime minister will herald a “new start” in relations between Brussels and London, a senior Irish minister has said.

Foreign affairs minister Simon Coveney said he does not have a preference between Liz Truss or Rishi Sunak in the Conservative leadership contest.

However, he expressed hope that whoever succeeds Boris Johnson steps away from the contentious move to override Brexit’s Northern Ireland Protocol by way of domestic legislation at Westminster.

Mr Coveney was speaking in Belfast ahead of meetings with local politicians to discuss the ongoing power-sharing impasse at Stormont triggered by the DUP’s refusal to reenter a devolved executive in protest at the Irish Sea trading arrangements.

Tory MPs have now voted five times to narrow the field of their leadership race down to just two candidates. Rishi Sunak and Liz Truss will go head-to-head, and the winner will replace Boris Johnson as prime minister.

Unlike the previous rounds, however, this one has a broader electorate: Tory members will get to vote on which of the pair becomes party leader.

We can expect to see the tenor of the race shift as candidates try to appeal beyond the parliament party, and to the membership in general. But who are these people?

Read more below:

The UK will send thousands of shells and weapons to Ukraine in the coming weeks as it steps up its support against Russia’s invasion.

Britain will supply Ukraine will 50,000 artillery shells, hundreds of drones and anti-tank weapons, defence secretary Ben Wallace announced in an update to Parliament today.

More than 20 M109 155mm self-propelled guns and 36 L119 105mm artillery guns will soon arrive from the UK.

Counter-battery radar systems and more than 50,000 rounds of ammunition for Ukraine’s existing Soviet era artillery will also follow, he added.

Read the full story below from our reporter, Maryam Zakir-Hussain:

A Tory councillor said Rishi Sunak won him over in private leadership hustings with the Conservative Councillors’ Association.

Councillor Ben Mabbett, from Vale of White Horse District Council in Oxfordshire, said Mr Sunak has a more realistic plan for the country than MsTruss.

He told the PA news agency: “I was very much a floating voter before this time because there were so many good candidates in the leadership election, so I was really open-minded.

“I’m ready for Rishi now. He had some great answers to questions, he has a sensible plan and actually, I think he’s got a more realistic plan for the country and something that I think will go over better with the electorate”.

Mr Sunak was more convincing on topics including social care, housing and environment, Mr Mabbett said.

But councillor Rhys Smithson from Colchester said he was still undecided after the closed session, but was leaning slightly towards Ms Truss.

He said: “They’re both very, very different, different approaches, different ideas.

“If I had to put money on anything, I would say Sunak is probably more grown up, but I would say Truss is more passionate.

“Truss will appeal more to members, I think Sunak will appeal more to the electorate”.

Penny Mordaunt has taken aim at her ministerial boss by joking she was “amazed” to be back at the Commons despatch box given her “reported work ethic” — while standing next to her.

But her supporters lavished praise on her as she returned to her frontbench duties after being knocked out of the leadership race.