Trevor Phillips and James Cleverly clashed over allegations that a string of people with links to the Conservative Party or Number 10 bet on the timing of the general election before Rishi Sunak announced it.
The Sky News presenter quizzed Mr Cleverly on why the prime minister had not sacked those alleged to be involved.
When questioned on why Mr Sunak has not asked those alleged to be involved if they placed bets or not, and sack them if they answered yes, Mr Cleverly responded that was the Gambling Commission’s responsiblity.
This prompted Mr Phillips to interject, telling the politician: “No – he’s the prime minister. These people work for him. He can do whatever he wants.”