I told Liz Truss her economic policies were wrong, says Rishi Sunak

Rishi Sunak has defended his economic record after Keir Starmer attacked former Tory PM Liz Truss's decisions.

The Labour leader said Ms Truss had been responsible for a "disastrous kamikaze Budget that triggered chaos for millions".

The PM distanced himself from his predecessor saying he had told Ms Truss her economic polices were "wrong".

Ms Truss became the UK's shortest-serving prime minister, when she was forced to resign after just 49 days.

Her mini-Budget, which included £45bn of unfunded tax cuts, triggered economic turmoil and led to her downfall as prime minister.

She is currently promoting her new book Ten Years to Save the West and has said her plan was aimed at boosting economic growth but was "undermined" by the Bank of England and the Office for Budget Responsibility.

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Mr Starmer raised the subject of Ms Truss and her book at Prime Minister's Questions, joking that he was the "proud owner" of a "rare unsigned copy".

"It is quite the read. She claims the Tory Party's disastrous kamikaze Budget that triggered chaos for millions was - her words - 'the happiest moment of her premiership'."

He asked if the prime minister had "met anyone with a mortgage who agrees" adding that "tens of billions of pounds of unfunded tax cuts" had "left millions paying more on their mortgages".

In reply, Mr Sunak said: "Everyone knows that two years ago I wasn't afraid to repeatedly warn about what her economic policies would lead to, even if it wasn't what people wanted to hear at the time."

During the battle to lead the Tory Party in 2022, Mr Sunak had argued that his opponent Ms Truss's tax cut plans would "tip millions of people into misery".

"I was right then but I am also right now when I say that his [Mr Starmer's] economic policies would be a disaster for Britain" Mr Sunak told Mr Starmer.

He added: "When my predecessor was running for leader, to use his words, I did have the stomach to argue out loud about her economic policies and the conviction to say that they were wrong not once, but twice."

Rishi Sunak and Liz Truss at a leadership debate in 2022

The Labour leader argued that the Conservatives were currently committing to £46bn ($57bn) worth of unfunded tax cuts, with its plan to scrap National Insurance altogether.

Chancellor Jeremy Hunt, who used his Budget last month to cut National Insurance, has said he would like to scrap the tax altogether but emphasised that this was "a long-term ambition".

The Labour leader said such a move could only be paid for by cutting the NHS, the state pension or raising income tax - and asked the prime minister which one he would opt for.

Mr Sunak side-stepped the question, instead pointing out that his recent tax cuts amounted to "£900 for a typical worker" - although the IFS think tank estimates the figure is closer to £340 when other changes are taken into account.

He also suggested that instead of reading Ms Truss's new book, the Labour leader should read the tax advice given to his own deputy, Angela Rayner.

Mr Starmer hit back, accusing Mr Sunak of "smearing a working-class woman" while his family had "used schemes to avoid millions of pounds of tax" - a reference to the prime minister's wife's previous use of the non-dom status.

Ms Rayner is facing questions over where she was living before she sold a house in 2015, and whether it meant she should have paid tax on the profits.

Greater Manchester Police have also said they are investigating claims she may have falsely registered her address on the electoral roll.

Ms Rayner has promised to resign if she is found to have committed a criminal offence.

She has resisted calls to publish professional advice she requested after the row over taxes broke out.

Mr Starmer, who is sticking by his deputy, has said he has not read the advice, although members of his team have.