Liz Truss will cause inflation spiral with ‘dangerous’ tax cuts, Rishi Sunak warns

Tory leadership contest rattles on as Labour poll lead grows

Rishi Sunak and Liz Truss are going head to head for the Tory leadership (Getty)

Liz Truss will plunge the economy into an “inflation spiral” if she pushes ahead with her “dangerous” economic policy, Rishi Sunak’s campaign team has warned.

Ms Truss’s leadership rival said the frontrunner had to choose between cutting taxes and offering help to struggling families over the winter, or risk wrecking the economy.

To push ahead on both fronts would mean “increasing borrowing to historic and dangerous levels, putting the public finances in serious jeopardy and plunging the economy into an inflation spiral”, the former chancellor’s camp said.