Rishi Sunak questions whether Liz Truss’s tax plans are truly Thatcherite

Sunak says Thatcher would know Truss’s planned tax cuts ‘aren’t a sensible approach’

Rishi Sunak and Liz Truss who have made it through to the final two in the Tory leadership race (PA) (PA Wire)

Rishi Sunak has questioned whether Liz Truss's economic policies are truly Thatcherite – as the pair of Tory leadership contenders compete to associate themselves with the former prime minister.

Citing Baroness Thatcher as one of his biggest influences Mr Sunak declined on Wednesday to say whether he would vote for his rival's tax cut plans were she to become PM.

Frontrunner Ms Truss has faced criticism in recent days from some Tories who say her plans to slash taxes funded by more borrowing risk further stoking inflation.

The foreign secretary is widely regarded as having imitating the ex-prime minister in style if not substance throughout her leadership bid – but some supporters of Baroness Thatcher have instead backed Mr Sunak.

Speaking on Wednesday Mr Sunak said he was “very privileged and humbled” to be endorsed by figures like former chancellor Nigel Lawson.

But spelling out his admiration for Baroness Thatcher's approach, Mr Sunak took aim at Ms Truss's policies – suggesting they were not comparable to the approach taken during the 1980s.

“She knew that you have to grip inflation – tax cuts funded by borrowing aren’t a sensible approach, but also one thing I admire and respect about her, and I think many other Conservatives do as well, is she was prepared not just to say the easy things that people may have wanted to hear," he told BBC Radio 4's Today programme

“She said the things that may have been difficult to hear, but were right for the country and had the courage of her convictions.

"And that’s the standard that I hold myself to. I don’t want to make promises that I can’t keep. And that’s why I believe my plans are the right ones for our nation.”

In another blow for Ms Truss’s Thatcherite credentials with Tory members, the director of the Institute for Fiscal Studies also warned this week that Ms Truss's approach to the economy was closer to that of Ted Heath than Margaret Thatcher.

Paul Johnson said: "Cutting taxes and growing deficit in face of high inflation has clear echoes of Ted Heath in 1973.

"Could not be further from Thatcher who famously took very unpopular decision to raise taxes in 1981 to manage deficit and inflation."

Polls suggest Ms Truss holds and is consolidating a commanding lead in the Tory leadership contest, with the latest YouGov survey last week suggesting a 32-point gap between her and Mr Sunak.

But the prospect of her becoming prime minister is yet to resonate outside the membership of the Conservative party, with Labour opening up a significant and consistent poll lead across pollsters.

A leaked internal Labour member reported by the Guardian however suggests the opposition's own pollsters believe Ms Truss's appointment could give the government a new wave of support and revive its fortunes.

Ms Truss however faces a battle to reverse the slide in Tory support, having already faced criticism for not addressing the cost of living crisis.

While the foreign secretary has promised unspecified help for families, she has also said she will focus on tax cuts and avoid what she described as "handouts".

The result of the Tory leadership election will be announced on Monday 5 September.