Answering a question on restoring trust in government, Sunak says he will reappoint an independent ethics adviser and make sure he is "honest about the challenges we face".

"Government has to be run with integrity at the heart of everything" and that "integrity needs to be set by the person at the top," says Sunak.

"Are you saying the government hasn't been run with integrity?", asks the host.

"That's why I resigned from the government, yes," Sunak answers.

Image source, Reuters

Rishi Sunak is still being quizzed by party members.

Asked about the hospitality industry, Sunak says he is reforming alcohol duties so that next year there will be less duty on beer in pubs than in supermarkets.

He then discusses corporation tax saying that the rate it is going up to is still "the lowest in the G7".

But he says it will be combined with "significant new tax cuts" for businesses which are investing in research and development.

"That's how you drive growth in a modern economy," he says, saying the UK's tax system is less generous than others on this.

He says he is "100% convinced" his corporate tax plan is the right one for the UK as it will drive growth.

Sunak says that Liz Truss's plan is "the wrong one" as it will stick to the "failed experiment of the last 10 years".

An SNP MP has condemned protesters seen throwing eggs and holding abusive signs as "morons".

A number of the protesters were seen with pro-independence banners.

David Linden, the SNP MP for Glasgow East, posted a tweet, external which said: "These morons don’t speak for me or my party."

"We condemn their behaviour utterly and without equivocation. If anyone of them is found to be an @theSNP, external member, then they should be chucked out immediately.

"It’s as simple as that."

Linden was responding to a tweet, external by Conservative MP Andrew Bowie saying he had seen "eggs being thrown" outside the hustings and protesters "spitting at pensioners".

Answering a question on the government's ability to "hold the SNP to account," Sunak says that the mentality in Whitehall over the past decade has been "devolve and forget".

He says he wants "Scottish officials to be able to come to Westminster Parliament to face questions... that's right and it's fair".

"I want to pass a law to ensure the SNP Scottish government has to produce data about public services in a directly comparable way [to the way] we do it in the United Kingdom," he adds to applause.

An SNP MP has said Rishi Sunak and Liz Truss seem to be "a bit obsessed" with Scottish First Minister Nicola Sturgeon.

Kirsten Oswald, the SNP's Westminster deputy leader, tweets, external: "I was trying to count the numbers of mentions of Nicola Sturgeon but I can't keep up.

"They are talking about her a lot. A bit obsessed, really."

Conservative Party members are now asking Sunak questions directly.

One asks him about the Rwanda immigration plan, which she criticises, urging the government to instead work with France to address the issue of people crossing the Channel to come to the UK.

Sunak replies by saying the UK will always be a "beacon of hope" for people around the world, and claims the European Court of Human Right's definition of an asylum seeker is "too broad" and allows people "to be here who shouldn't be".

When questioned about reports that UK ministers were warned that the Rwandan government tortures and kills political opponents, Sunak says: "The UN has used Rwanda as a refugee and asylum centre... The UN believe that Rwanda is fine, so I do think it is fine."

Only a passing mention for energy costs in opening statementspublished at 20:05 British Summer Time 16 August 2022

20:05 BST 16 August 2022

Helen Catt
Political correspondent

It's striking that the cost of energy got not much more than a passing mention in the opening speeches of both candidates.

That's despite the cost of living being the issue which will dominate the agenda for whoever wins this contest (and, indeed, is the opening question fired at Rishi Sunak).

Sunak has repeated his pledge to cut VAT on energy bills and "go further for those groups who need it".

Liz Truss reiterated her promise to scrap the NI rise and addressed the supply side of energy, saying the UK needs to use "our gas supplies now".

It's a reminder, though, that this contest is about electing a party leader as well as choosing a prime minister.

Returning to Sunak, the former chancellor says the cost of living crisis is the most important issue now and it's "barmy" to focus on the question of holding a second referendum on Scotland leaving the UK "at a time when people are worried about heating their homes".

He says he "can't imagine a situation" where he would allow a second referendum.

Sunak says he's focused on "defending the union" and "holding the SNP to account for their failures".

Rivals have different language - but a similar approachpublished at 20:01 British Summer Time 16 August 2022

20:01 BST 16 August 2022

Glenn Campbell
BBC Scotland Political Editor

Liz Truss caused controversy in Scotland at the Exeter hustings when she described Nicola Sturgeon as an “attention seeker” and suggested she was best ignored.

When asked about her comments on a visit to an Elgin distillery earlier today, Truss offered no clarification, instead stressing that her focus is on delivering for the people of Scotland.

By contrast, her rival Rishi Sunak made clear in an interview in Perth that he does not want to ignore Sturgeon but to "take her on and beat her".

That’s certainly a difference in language but I’m not convinced there’s any great difference in substance in their approach to Scotland and maintaining the union.

Both favour greater scrutiny of the Scottish government and greater involvement of the UK government in Scotland.

Both are also firmly opposed to another independence referendum anytime soon.

Questioner Colin Mackay says former Scottish Tory leader Ruth Davidson is backing Rishi Sunak but does not think he can win.

"Do you still think it?" Mackay asks.

Sunak does not answer directly, but says he is going to "give it everything I have got until the last day of this contest".

Rishi Sunak is asked how big a pay rise he would give NHS nurses.

He says that while it's a devolved matter in Scotland, in England he would listen to the independent body which makes recommendations on public sector pay.

But Sunak says he wants to get a grip on NHS spending and deliver reform and efficiency in the health service.

One thing he says he wants to tackle is dealing with missed NHS appointments.

He says 15 million appointments were missed last year and says: "I want to get tough on that".

It's now time for questions from the host.

Sunak gets the first question, and it's on the cost of living crisis, which he says is "the most important issue facing all of us" .

He says pensioners and people on particularly low incomes will need more help and he commits to providing "direct support" to them.

"I don't think tax cuts are the right way to do that," he adds, saying that the cuts Truss suggests would not help pensioners or people on low incomes.

He says it's right to be honest about the scale of the challenge the UK faces on energy prices, adding: "Not acknowledging it is not leadership."

Returning to Truss, the foreign secretary says she will get the best possible deal for fishermen when "we get control of our waters in 2026".

"You know that I am tough when I negotiate with Europe," she says.

Truss says that the UK also needs to be tough on Russia, and says she wants to increase defence spending.

She goes on to say that she wants to protect and renew our nuclear deterrent.

The UK's nuclear submarines are based in Clyde, Scotland.

Now we'll hear the candidates quizzed by journalist Colin Mackay, with Rishi Sunak up first.

Truss appears to have edge among members in roompublished at 19:54 British Summer Time 16 August 2022

19:54 BST 16 August 2022

Philip Sim
BBC Scotland political correspondent, reporting from Perth

From the reaction to the opening statements, it seems like Liz Truss has more support in the room in Perth.

There was a warm reception for Rishi Sunak, particularly when he made a jibe about taking on Nicola Sturgeon rather than “ignoring” her – a reference to his rival’s statement about the first minister at an earlier event.

But Truss got a far larger cheer for her opening remark on the union – that the UK is a family, and that “I will never, ever let our family be split up”.

With both candidates broadly in agreement on the union and the prospect of a referendum on independence, the crucial thing tonight was which of them could make a more compelling case to members on that front.

Its possible Truss just has a more organised band of supporters – but it certainly feels like she has the edge among the members present.

Echoing Rishi Sunak's opening remarks, Liz Truss says the people of Scotland "deserve better" than the SNP – and as PM she would seek to deliver an "aspiration nation".

"The union is critical to the success of all of us," she adds.

She references her record as trade secretary and recalls her work to suspend US tariffs on products such as Scotch whisky.

She then jokes that she doesn't think she has ever been as popular as she was in an Edinburgh bar a few days after the tariffs were removed in June 2021.

"That's what I'm about," she says to enthusiastic applause.

There are loud cheers for Liz Truss as she walks out.

She begins by saying she spent some of her most formative years in Scotland.

"We are not just neighbours, we are family," she says, "and I will never, ever let our family be split up."

Truss goes on to say Scotland has been let down by the SNP government, claiming they have been pursuing a government of separatism.

She says as PM she will hold the title "minister for the union" and says it is critical to the success of all the nations of the UK.

Image source, PA Media

Moving away from the hustings for a moment, how are the Conservatives currently faring in Scotland?

Thanks, in part, to the additional member voting system in Scottish Parliament elections - a form of proportional representation - the Tories have a stronger voice at Holyrood than people in the rest of the UK might imagine.

The Conservatives remain the second largest party with 31 MSPs - compared to the 64 held by the SNP.

Nine Scottish Conservative MSPs, including Murdo Fraser, Rachael Hamilton, Liam Kerr and Oliver Mundell, have declared their support for Liz Truss.

Meanwhile eight Conservative MSPs declared their support for Rishi Sunak in a joint letter in the Telegraph.

They are Donald Cameron, Liz Smith, Miles Briggs, Jackson Carlaw, Maurice Golden, Jeremy Balfour, Dean Lockhart and Alexander Stewart.

MPs John Lamont and Andrew Bowie have also backed Sunak.

Introducing Liz Truss is David Mundell, the former Scottish Secretary and Conservative MP for Dumfriesshire, Clydesdale and Tweeddale.

He says: "The people of Scotland just want both their governments to work together for their benefit."

On her relationship with First Minister Nicola Sturgeon, Mundell adds that Truss will "say no to another independence referendum on her watch" and will be able to "rise above [Sturgeon's] petty nationalist games".

Philip Sim
BBC Scotland political correspondent, reporting from Perth

We saw an interesting nugget before the hustings got going as the host, STV broadcaster Colin Mackay, asked the gathered Tory members whether any of them were yet to send back their ballots.

Rather a lot of hands went up – perhaps as many as half of the 650 members present.

That suggests there could be a lot on the line for the two candidates tonight, and in the remaining weeks of the campaign…

James Cook
Scotland Editor, BBC News

In 2014, shortly before the referendum on independence, I broadcast live from the centre of Perth amid a large crowd of both pro- and anti-independence supporters.

The atmosphere was jovial. The discussion courteous.

This evening I walked along the barrier outside the Conservative Party hustings at the same city's concert hall hoping to chat to pro-independence supporters, to hear their concerns and their hopes.

It proved practically impossible. The abuse was intense. I was called a "liar," a "traitor" and "scum". Several times I was told to go away - in somewhat more explicit terms.

One woman wanted to talk about the 1689 Claim of Right but it was difficult to make out her point as the man next to her repeatedly hurled personal abuse at me.

A few people did smile and wave. A variety of causes were represented on the banners. The pro-independence Alba Party; trades unions; the need for climate action, to name a few.

But for the hardcore I found no appetite for debate. Many are furious with the BBC which they regard as biased in favour of the union.

A small cross-section of the country, of course, but Scotland in 2022 can feel like a very different nation.