ITV's Julie Etchingham is now quoting the IFS, the influential economics think tank.

The think tank has warned that cuts may be necessary whoever wins the next election and has called for all parties to be upfront about the massive challenges in the public finances, she says.

The leaders are being asked if there will be cuts to public services after the election - and both say no.

Sunak says he has invested record amounts in the public sector, while Starmer rules out a return to austerity and tells the audience he has ran a public service before - the Crown Prosecution Service - so knows what it takes.

That brings and end to the first part of the debate.

Image source, ITV

Julie Etchingham, who is hosting debate, says audience members are asking how Labour and the Conservatives plan to fund their plans.

Starmer says the Labour Party will raise tax through ending the non-dom status, closing equity loopholes, and stopping the tax break for private schools.

He adds oil and gas companies should also pay their fair share.

Sunak weighs in now, saying he's announced the triple lock plus and would ensure pensioners are not subject to tax.

He adds that Starmer hasn't matched that pledge.

The Labour leader says the government under former Conservative leader Liz Truss made unfunded tax cuts and that Sunak is now pledging to do the same.

This isn't the first time tonight Starmer has referred to Liz Truss's time as prime minister.

While Starmer says he plans to raise VAT on private schools to pay for more teachers, Sunak jumps in and says he does not agree with it.

People who work hard should have that freedom, he says.

Branwen Jeffreys
Education Editor

Keir Starmer says Labour’s plans to charge VAT on school fees will allow them to recruit more than 6,000 teachers in England.

Independent economists at the Institute for Fiscal Studies say it would raise £1.6bn.

It’s not clear how the extra money would be used to overcome a shortage of teachers in some secondary subjects.

Image source, ITV

Now we're moving onto questions about education.

Sunak says education is the "most powerful way you can transform someone's life" and says the government is backing the sector with record investment, introducing positive reforms.

In response, Starmer says a pattern is emerging in this debate of the prime minister responding to a question about the "poor state" of public services by telling the audience how well things are going.

The Labour leader says the UK doesn't have enough teachers and in some schools maths is being taught by PE teachers. He says his government would recruit an extra 6,500 teachers.

Labour plans to raise VAT on private schools to fund that policy - a policy which was announced before the election was called.

Julie Etchingham is now asking Sunak and Starmer if they will both commit to a fully-funded solution to the problems in the NHS in their manifestos.

Sunak says his party has allocated an extra £8bn towards social care because the pressures are "immediate".

Starmer says the manifesto will have a plan for social care which will be fully costed and funded.

It's worth saying none of the major parties have released manifestos yet - we're expected them in the next few weeks - it'll be another big moment of the campaign.

The two leaders are now asked a straightforward 'yes or no question' by ITV's Julie Etchingham.

"If you had loved ones on a long waiting list for surgery, would you, if you felt that that was the only way forward, use private healthcare?"

Sunak: "Yes."

Starmer: "No."

The Labour leader says that he doesn't use private health care.

Henry Zeffman
Chief political correspondent

Image source, ITV

Fast off the back of the groan, Rishi Sunak wins the first round of applause of the night, after saying it would not be right for taxes to go up in order to find a way to resolve NHS strikes.

He’s now visibly enjoying scrutinising Starmer over what exactly Labour’s plans are to end the strikes, with Starmer taking issue with Sunak’s repeated interjections.

Henry Zeffman
Chief political correspondent

The audience just audibly groaned when Rishi Sunak tried to argue that the reason NHS waiting lists are so high is because of industrial action by NHS workers.

Let me make the most obvious point of the night: that’s not a good sign for the prime minister.

Sunak points to the record of Welsh Labour on the NHS but Starmer accuses Sunak of "blaming everybody else".

He adds: "What does personal responsibility actually mean?"

Starmer says a future government needs to resolve strikes in the NHS and he has a plan to do so, which triggers a tetchy back and forth.

He says Labour had a good record on waiting lists in government which "has been completely turned on its head" under the Tories.

Sunak, however, says he offered junior doctors "the most generous" pay settlement in the public sector and there is applause when he says he doesn't want to put people's taxes up to pay the 35% rise some in sector want.

Starmer clarifies that he wouldn't pay the 35% pay rise either.

Image source, ITV

The next question comes from Janet, who tells the leaders she's interacted with the NHS more lately than the average person, adding that she thinks the health service is "broken".

"How long will it take to fix it?" she asks.

Labour leader Sir Keir Starmer says it's "unforgiveable" what has happened to the NHS and accuses the Conservatives of leaving it in a worse state than when they came into power 14 years ago.

He says waiting lists have increase from 7.2m to 7.5m people.

Sunak is now responding to Janet's question, citing the damage the Covid-19 pandemic has done to the NHS.

He says he's putting more funding and more staff into the NHS.

The next topic is health and social care, and the NHS.

ITV's Julie Etchingham has to interrupt the two leaders, bringing the debate back to Paula's question on cost of living pressures.

The host asks Rishi Sunak and Keir Starmer if they understand the struggles people like Paula are currently facing in the UK.

Sunak says his party is now delivering financial security and doesn't want to put that at risk.

The prime minister adds that he has a clear plan, and although things are tough he wishes them to get easier.

Etchingham has to interrupt Sunak, moving on to hear from Keir Starmer.

The Labour leader says he knows how it feels to experience the "anguish and worry" when a bill arrives, referencing financial pressures he says he faced himself growing up.

Henry Zeffman
Chief political correspondent

Fifteen minutes in and both leaders have managed to tell the audience the occupations of all four of their parents.

It’s easy to mock this but strategists wouldn’t advise them to do it for no reason. It is an unsubtle way of quickly trying to tell voters what they’re all about.

The first question of the night comes from Paula from Huddersfield.

She says she's finding it difficult to make ends meet, her food bill has doubled, and her savings have gone.

Rishi Sunak responds by saying the last few years have been a strain on people's finances but defends his record in government, citing his furlough scheme during the pandemic when he was chancellor.

He says the economy is growing, wages are rising, and he can start cutting taxes, which Paula is only just starting to see the benefit of.

Keir Starmer says there are millions watching this ITV election debate in a similar position to Paula.

The war in Ukraine and the Covid-19 pandemic have made things worse, he says, but he accuses the government of losing control, adding we need to "stop this chaos".

Henry Zeffman
Chief political correspondent

Image source, ITV

Interesting new approach from Keir Starmer – I’ve not heard this from him before.

He’s trying to use the timing of this election against Rishi Sunak, claiming that the fact he’s holding it in the summer shows that he “knows” the economy and energy prices are going to take a turn for the worse soon after.

Sunak hit back, quipping that Starmer has been demanding a general election ever since he became prime minister almost two years ago.

Starmer says the prime minister doesn't believe his own plan on the economy and that's why he called an election.

Sunak hits back, saying the Labour leader can't make his mind up over whether he thinks there should be an election.

He claims Labour would "put people's taxes up by £2,000" which he says is wrong. Our colleagues at BBC Verify are looking into this £2,000 figure.

Starmer says the prime minister is "living in another world". Asked to respond to the claim about tax, Starmer says Sunak has "put taxes up 26 times" and calls him "the British expert in tax rises".

Starmer goes for 'change', while Sunak goes for 'a clear plan'published at 21:09 British Summer Time 4 June

21:09 BST 4 June

Henry Zeffman
Chief political correspondent

Yes, this debate is an opportunity for both leaders to scrap over the big issues.

But it’s also an unparalleled opportunity for both Keir Starmer and Rishi Sunak to land their key campaign messages in primetime to a mass television audience.

No surprise then that in their opening statements both leaders sought to reiterate the central messages of their campaigns.

For Starmer: “change”. For Sunak: “a clear plan”.

Each leader will have 45 seconds to respond to questions initially, mediator Julie Etchingham says.

The first question being put to them is on the cost of living.

Image source, ITV

It is now Rishi Sunak's opportunity to set out his opening remarks.

Sunak says "uncertain times call for a clear plan and bold action".

He says that if elected as the country's leader in the upcoming general election, he will cut taxes, protect pensions and reduce immigration.

The Conservative leader pledges to provide a secure plan for the future.