Rishi Sunak "dismissed" concerns over Covid loan fraud while Chancellor and cost taxpayers more than £17billion, a former Treasury colleague has claimed.
The comments came during a heated TV leadership debate, which saw Mr Sunak also criticised for his response to the cost of living crisis while in Government.
Foreign Secretary Liz Truss said: “Rishi, you have raised taxes to the highest level in 70 years. That is not going to drive economic growth."
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“The fact is that raising taxes at this moment will choke off economic growth, it will prevent us getting the revenue we need to pay off the debt.”
Mr Sunak responded that the pandemic damaged the economy and the money has to be paid back.
“I’d love to stand here and say ‘look, I’ll cut this tax, that tax and another tax and it will all be okay’. But you know what? It won’t,” he said.
“There’s a cost to these things and the cost of higher inflation, higher mortgage rates, eroded savings. And you know what? This something for nothing economics isn’t Conservative. It’s socialism.”
Penny Mordaunt, who is also vying to replace Boris Johnson, said the limited tax cuts she advocated were not inflationary and people need help now with the cost of living.
“I don’t understand why Rishi doesn’t understand that,” she said.
Mr Sunak said: “It is one thing to borrow for long-term investment. It is a whole other thing to put the day-to-day bills on the country’s credit card. It is not just wrong, it is dangerous.
“Even Jeremy Corbyn didn’t go that far.”
Former Northern Powerhouse minister Kemi Badenoch also attacked Mr Sunak, saying: "I believe we need to support people who do the right thing and not let those who don't off the hook.
"When we both worked in the Treasury, myself and other ministers raised the issue of Covid loan fraud and you dismissed us and it has cost taxpayers £17 billion. Why didn't you take us seriously?"
Mr Sunak said he took "tackling fraud incredibly seriously" and said he was "proud of his record".
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