Rishi Sunak and Liz Truss have taken part in their first head-to-head debate as they campaign to become the next Conservative leader, and next Prime Minister. In a debate that focused on tax and the economy, we’ve taken a closer look at what they said.
the Times
last week: “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.”. The Times article also noted that Ms Truss’s team had said Professor Minford was not a formal adviser and that she would not allow interest rates to rise this high.Ms Truss claimed: “The OECD has described [Mr Sunak’s] policies as contractionary. That means it will lead to a recession.
This kind of policy slows economic growth, but it does not necessarily mean that a country is heading towards a recession, which is defined as two consecutive quarters of negative economic growth.does not say that the UK’s current policy will lead to a recession. It states that “GDP is projected to increase by 3.6% in 2022, before stagnating in 2023”.
Later in the debate, Ms Truss claimed again that “we’re now predicted a recession”, but other forecasts on this are mixed.
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