Conservative leadership: Liz Truss says Tory economic policy choked growth

The economic policies of previous Conservative and Labour governments over 20 years have not delivered growth, Tory leadership candidate Liz Truss has said.

Ms Truss has criticised tax hikes introduced by her rival Rishi Sunak, arguing they "choked off" growth.

But ex-chancellor Mr Sunak has promised to cut taxes and unleash economic growth once inflation came down.

Tory MPs chose the pair to enter the run-off to be the next prime minister.

Economic policy has become the main battleground as the rivals battle to win over the party's members, who will vote for their preferred candidate from next month.

The party's roughly 160,000 members will vote online or by post, with a final result due in September, when Prime Minister Boris Johnson will leave office.

The head-to-head leadership contest intensified on Friday, as Ms Truss made her pitch in an interview with the BBC, describing herself as someone who would "drive-through change".

She said: "We have had a consensus of the Treasury, of economists, with the Financial Times, with other outlets, peddling a particular type of economic policy for 20 years. It hasn't delivered growth."

Ms Truss and those in the Treasury - where she once worked under a Conservative government - "do have economic orthodoxy and they do resist change".

"What people in Britain desperately need now is change," Ms Truss said.

Ms Truss said she would have liked Mr Johnson to continue as prime minister despite promising to depart from his economic platform.

"The best way to achieve economic growth is cutting taxes and bureaucracy, and boosting private sector investment and innovation," he said.

Mr Sunak has previously said the tax burden needed to be reduced but not immediately, saying it was a matter of "when not if".

The pair emerged as the final candidates after Ms Truss overtook Trade minister Penny Mordaunt, at one point the favourite, to secure second place in the final ballot of Tory MPs.

Mr Sunak, who consistently led among MPs, topped the ballot with 137 votes. But polls suggest he is less popular among the Conservative Party membership.

The two finalists will now set out their stalls at 12 hustings to be held around the UK. The first will take place in Leeds on 28 July, while the last will be in London on 31 August.