Tory leadership hopefuls clash over cost of living, as Truss insists on tax cuts over 'handouts' to help families

Liz Truss continues to insist she would press ahead with tax cuts, despite claims they would fuel inflation - already forecast to top 13%.

"That is not inevitable, but we need to avoid that by making sure our economy is competitive, that we're encouraging businesses to grow and that we are keeping taxes low."

Asked how she intended to help households facing spiralling energy bills this winter, she insisted the answer was tax cuts and supply-side reforms. Ms Truss has taken a seven-point lead as best prime minister against Rishi Sunak and a 26-point lead among 2019 Conservative voters .

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