Rishi Sunak and Liz Truss have been taking part in a second Tory leadership hustings in Exeter as they try to win over party members
Penny Mordaunt - who came third in the leadership contest - has backed Liz Truss in her bid to become the next prime minister
She says she is the "hope candidate" and says it is "her authenticity, her determination, her ambition for country" that makes Truss the best candidate
Earlier, former Tory leader William Hague urged party members to back the "highly disciplined" and "rational" ex-chancellor
Conservative members have until the beginning of next month to cast their ballot, with the winner announced on 5 September
That's it for this evening, thanks for joining us.
The next hustings event will be in Cardiff on Wednesday.
Our coverage was brought to you by Catherine Evans, George Wright, Alexandra Fouché and Chris Giles.
Image source, ReutersWe're pausing our live coverage shortly, but before we go here's a round-up of the biggest talking points.
Martyn Oates
BBC South West Political Editor
Earlier Liz Truss was asked whether she would provide parliamentary time to vote on repealing the hunting ban.
The answer was “no” - while she was keen to praise the country sports fraternity she said her experience in David Cameron’s government (he had promised a free vote on repealing the ban) suggested revisiting the ban “might make things worse”.
Her answer ruling out repeal won more applause than the questioner calling for it - from an audience drawn from the rural South West.
That probably wouldn’t have happened a decade ago.
Rajdeep Sandhu
Westminster Correspondent, BBC News
The momentum in this part of the campaign is still with Liz Truss. That's clear now that she has the backing of Penny Mordaunt.
So it's not surprising that Rishi Sunak wants to describe himself as a change candidate and brush aside the 'doomster' label.
But he can't get away from it completely because he also wants to be seen as financially responsible and that might not stir conservative hearts as much as Liz Truss' promises of immediate tax cuts.
While Liz Truss' disregard for the SNP leader Nicola Sturgeon might play well to the conservative base, calling the First Minister of Scotland 'an attention seeker' might not be a wise move.
If Liz Truss were to become Prime Minister their first meeting will likely be very frosty indeed.
We also learned where the members' doubts lie with these two leaders, through some of the tricky audience questions.
For Liz Truss it was a question on her tax policy 'where is all the money going to come from' for those tax cuts.
While for Rishi Sunak it was again about his loyalty under Boris Johnson.
We can expect variations of those doubts to come up again and again as the hustings continue.
So you've heard some of the plans leadership hopefuls Rishi Sunak and Liz Truss have been setting out at tonight's husting in Exeter.
But what do each of the candidates say they'll do if they get the keys to No 10?
Find out with our handy guide here.
In his resignation letter, Rishi Sunak highlighted fundamental differences in his and the PM's views on how to fix the economy.
And he's just pledged he's "not going to stick with the failed plans of the past".
Asked about corporation tax, he said he wants to reform the system.
He admits the headline rate of corporation tax is going to go up, but maintains Britain will still have the lowest rate of the G7 countries.
He adds that Britain needs to attract investment, and the tax system isn't "generous enough", so he's going to cut taxes of business investment in R&D to build on innovation.
He says low corporation tax has done "zilch" for economic growth.
"How important is loyalty to you? I don’t feel you were loyal to Boris Johnson," one woman in the audience asks, to lots of clapping.
"I respectfully disagree," Sunak responds, to perhaps even more clapping.
The pair were not on the same page on economic policy, he says.
But the government was on the "wrong side” of a very serious ethical question," he says, in apparent reference to Johnson's handling of allegations against MP Chris Pincher.
"It wasn't just me, but 60 other members of parliament," Sunak says.
The pandemic exposed the frailties of the social care system, says Sunak, when asked about elderly care.
He says it needs more funding for proper reform to happen, adding he did that as chancellor.
There needs to be improvements in the quality of social care provision, he adds.
"We can't have the NHS keep gobbling up all the money and social care being the poor cousin," he says.
"We need to fix the funding formulas."
A member of the audience talks about waiting years for a diagnosis for his daughter's suspected autism. He says that he was able to afford private healthcare, but what about those who can't afford it?
Sunak responds by paying tribute to former Health Secretary Jeremy Hunt, who he says was the first to "prioritise" mental health, but the job is "not done".
Sunak says he wants to see “more mental health provisions in education” to "stop the problem at the source".
He points to the role the internet can play in causing mental health problems in young people and backs plans for the Online Safety Bill, which aims to lay down rules in law about how platforms should deal with harmful content.
Sunak's just been talking about "being bold and reforming public services".
"That's exactly what we need to do," he says, adding the first stop should be the NHS.
He says there's a massive problem with backlogs in the health service, which could benefit from software automation to clear up the list.
"We can't just sit on our hands," he says, adding there's a need for radicalism.
Image source, ReutersA woman from West Dorset asks what Sunak will do to improve local buses in her area.
He replies that it's not just about transport, but schools too.
"We need to make sure the voice of rural Britain is heard loudly and clearly down in Westminster," he says, adding that they often get it wrong.
Martyn Oates
BBC South West Political Editor
Rishi Sunak insists future trade deals will be done more slowly and carefully and so as not to disadvantage British farmers.
The recent Australian trade deal has received fierce criticism from the farming community who fear it will lead to a flood of cheap meat which will undermines the competitiveness of British produce.
The government’s own impact assessment predicted it would have a negative impact on British agriculture.
A very sore point among the South West’s many livestock farmers. And the Trade Secretary at the time the the Australian deal was done? Mr Sunak’s rival for the leadership Liz Truss.
Rishi Sunak's just been asked whether he feels confident that he is up to the job of prime minister.
He replies he wouldn't be here if he didn't think he was up to the task.
"I passionately believe I can do it," he says.
He also says he'd "smash Keir Starmer and the Labour Party and the liberals at the next election".
Are you a change or continuity candidate? Sunak is asked.
Sunak says he's "definitely" the former.
He speaks of making big decisions at "crunch moments", in particular Brexit, which he says he was advised against supporting.
"I believed in my principles then and I believe in them now," he says.
Image source, ReutersAsked about his plans for tax cuts at some point, Rishi Sunak's sticking to his guns.
He says any tax cuts must be paid for, once the government has a grip of inflation.
He says income tax cuts will reward people's hard work and "put money in their pockets".
Truss has just finished answering questions from party members, to a hearty round of applause.
Up next, former chancellor Rishi Sunak.
A Scottish member of the audience asks what Truss will do to ensure the United Kingdom does not break up.
The best thing to do is to "ignore" Scottish First Minister Nicola Sturgeon, she responds - to the loudest cheer of the night.
She brands Sturgeon an "attention seeker".
Would she ever back a second referendum of Scottish independence? Truss is asked.
"No, no, no."
Truss has just been asked if the Online Safety Bill should be scrapped.
She says under-18s need to be protected, but so does free speech.
Truss, who has two daughters, aged 13 and 16, says she is "worried about what they see" online.
She also worries about social networking sites, which can have a negative effect on girls' mental health.
At the same time, she adds, grown adults should be able to communicate freely.
Image source, PA MediaTruss is asked by an audience member how she will avoid plunging the country into debt.
Truss has vowed to reduce taxes if she becomes prime minister.
"The money is going to come from thriving enterprises, thriving businesses and economic growth," she responds.
Taxing people and businesses too much will "throttle growth", she adds.
"We believe in enterprises and people keeping more of their money."
A member of the audience asks Truss if she'd repeal the 2005 Hunting Act.
She replies it would be "opening Pandora's Box".
But she adds she is a supporter of countryside sports, adding the shooting industry does "fantastic conservation work".