Rishi Sunak said he would back Liz Truss to be prime minister over Boris Johnson but she shunned the former chancellor in favour of her departing boss during the second-last Conservative leadership campaign event.
Both contenders for the top job faced questions on topics, including soaring energy bills, crime and climate change as they attacked each other's economic policies at the event in Norwich.
Mr Sunak said he would not pursue policies that “risk making inflation far worse and last far longer”, especially if they “amount to borrowing £50 billion [$59bn] and putting that on the country’s credit card”.
Ms Truss, the Foreign Secretary, said raising corporation tax — something Mr Sunak announced as chancellor — would “stop economic growth and put this country into a recession”.
She also caused a stir by saying the “jury’s out” on whether French President Emmanuel Macron is “friend or foe” to the UK.
Ms Truss said that if she was prime minister, she would judge him on “deeds, not words”.
In answer to the same question, Mr Sunak said Mr Macron was "a friend”.
Both were asked who would make a better prime minister: their rival or Mr Johnson.
Mr Sunak said he would prefer Ms Truss, as he called for the country to “move forward”.
But said she would rather Mr Johnson had the top job, which drew loud applause and cheers from the audience.
UK Conservatives on the leadership campaign trail — in pictures
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Candidates Rishi Sunak and Liz Truss at the Conservative Party leadership election hustings at Wembley Arena, London. This was the final hustings attended by Tory Party members who will vote for the new leader and next prime minister. EPA -
Liz Truss addresses Conservative Party members at Wembley Arena. AP -
Mr Sunak puts forward his case to be leader while speaking at Wembley Arena. Bloomberg -
Mr Sunak visits his family's old business, Bassett Pharmacy in Southampton, while on the campaign trail. Reuters -
Ms Truss speaks to staff at Condimentum Ltd at the Food Enterprise Park in Norwich. Getty Images -
A Rishi Sunak supporter at a hustings event in Norfolk. PA -
Mr Sunak greets people at a leadership hustings in Manchester. Bloomberg -
Ms Truss poses for a selfie with a supporter as she arrives for the event in Manchester. Getty -
Rishi Sunak looks through the sights of an anti-tank missile launcher, supplied to Ukraine, during a visit to the Thales Defence System plant in Belfast, Northern Ireland. AP -
Liz Truss at a Conservative Party leadership campaign event in Belfast. Getty -
Liz Truss meets supporters before a hustings in Perth, Scotland. Getty -
Rishi Sunak speaks during a campaign visit to Cluny Castle in Inverurie, Scotland. Getty -
Police hold back protesters outside Perth Concert Hall, Scotland, where Conservative leadership candidates Liz Truss and Rishi Sunak were speaking. PA -
A mural showing the two leadership contestants appears on a wall in Belfast, Northern Ireland. AP -
Rishi Sunak during a visit to St John's Wood Synagogue, north London. PA -
Liz Truss at the Conservative Party leadership election hustings in Cheltenham. EPA -
Rishi Sunak during a hustings event in Cheltenham. Reuters -
Liz Truss speaks to scientists during a campaign visit to a life sciences laboratory at Alderley Park in Manchester. PA -
Rishi Sunak during a campaign hustings in Darlington, England. Bloomberg -
Liz Truss meets party members before she speaks at the Darlington campaign hustings. Getty -
Rishi Sunak arrives for the Darlington hustings. Getty -
Liz Truss plays pool during a visit to the Onside Future Youth Zone in London. Reuters -
Rishi Sunak looks at a book with Teddy Openshaw, 4, as his father, Henry, looks on after a Conservative leadership campaign event in Ribble Valley, Lancashire, England. Getty -
Liz Truss plays table tennis with former Conservative party leader Iain Duncan Smith during a visit to the Onside Future Youth Zone in London. Reuters -
Liz Truss with supporters at a campaign event in Solihull, England. Reuters -
Rishi Sunak attends a campaign event held by his party in Bexhill, England. Reuters -
A protester is removed as Ms Truss speaks during the Conservative Party leadership hustings in Eastbourne. Bloomberg -
Mr Sunak speaks at an event in Edinburgh. PA -
Ms Truss leaves the hall in Exeter, south-west England, after her speech to a Conservative Party membership hustings. Getty -
Mr Sunak speaks at the University of Exeter in south-west England. AP -
A supporter of Ms Truss at a Conservative Party hustings in Exeter, south-west England. Getty -
Ms Truss at a hustings event at the Pavilion conference centre at Elland Road in Leeds. PA -
Mr Sunak in Salisbury watching a screening of the Uefa Women's Euro 2022 final between England and Germany at Wembley stadium. England won 2-1 in extra time. PA -
Ms Truss before the Uefa Women's Euro 2022 final at Wembley stadium in London. AFP -
Mr Sunak meets Tory members at Fontwell Park Racecourse. Reuters -
Ms Truss at an event in Dereham, Norfolk. AFP -
Mr Sunak in Ropley, near Winchester, Hampshire. PA -
Ms Truss speaks as Conservative Member of Parliament Tom Tugendhat looks on at a Conservative Party leadership campaign event at Biggin Hill Airport. Getty -
Ms Truss on the campaign trail in Woodford Green, on the outskirts of London. Reuters -
Mr Sunak at a Conservative Party hustings event in Leeds. AFP -
Ms Truss speaks at the hustings event in Leeds. AFP -
Sunak and Truss-themed souvenirs at a stand during the Leeds hustings event. Reuters -
Ms Truss, and her mother, Patricia, arrive for the hustings event. Getty -
Ms Truss poses with supporters in Morley, England. Getty -
Mr Sunak delivers a speech during a campaign event in Newmarket. AFP -
Ms Truss and Jake Berry, MP for Rossendale and Darwen, during a visit to a broadband interchange company in Leeds. PA -
Mr Sunak answers questions as he takes part in the hustings in Leeds. AFP -
Ms Truss speaks at an event at a private house with members of the Conservative Party in Woodford Green. PA -
Ms Truss and Mr Sunak pose for a picture before a BBC leadership debate at Victoria Hall in Hanley. Getty -
Ms Truss addresses Mr Sunak during the televised debate. Getty -
Mr Sunak, with daughters Krishna and Anushka, and wife Akshata Murthy, during a visit to Vaculug tyre specialists at Gonerby Hill Foot, Grantham. PA -
Ms Truss speaks to people while campaigning in Marden. Getty -
Ms Truss celebrates after being named, along with Mr Sunak, one of the final two candidates in the race to become the UK's next prime minister. PA -
Mr Sunak outside his campaign office in central London. EPA -
Ms Truss outside Downing Street in London. Reuters -
Rishi Sunak meets Conservative Party members and activists, in Teesport, Redcar. Reuters -
Conservative leadership candidates Mr Sunak, Ms Truss, Kemi Badenoch, presenter Julie Etchingham, Tom Tugendhat and Penny Mordaunt during 'Britain's Next Prime Minister: The ITV Debate' in London. EPA -
Ms Badenoch arrives at Here East studios in Stratford, east London, before a live television debate. PA -
Mr Sunak arrives at a London event to launch his campaign to be the next Conservative Party leader and UK prime minister. Reuters -
Mr Tugendhat appears on the BBC One current affairs programme, 'Sunday Morning'. PA -
Ms Badenoch, Ms Mordaunt, Mr Sunak, Ms Truss and Mr Tugendhat before the live television debate. PA -
Ms Mordaunt arrives for the launch of her Conservative leadership campaign at the Cinnamon Club in Westminster. PA -
Ms Truss speaks at the launch event for her campaign to become the next leader of the Tory Party and Britain's prime minister, in London. EPA -
Chancellor of the Exchequer Nadhim Zahawi, one of the candidates who has been knocked out of the race, giving a speech at the Churchill War Rooms. PA -
Former leadership candidate Jeremy Hunt appearing on the BBC One current affairs programme, 'Sunday Morning'. PA -
Sajid Javid attending the launch of his campaign to be Conservative Party leader and prime minister, at the Cinnamon Club in London. He has since been knocked out of the contest. PA -
Rehman Chishti is interviewed after announcing his bid to become the next prime minister. Mr Chishti is no longer in the race. Getty -
Mr Tugendhat speaking at the launch of his campaign. PA -
Culture Secretary Nadine Dorries and Conservative MP Iain Duncan Smith arrive for the Truss campaign launch event. Getty -
Former leadership candidate Attorney General Suella Braverman at the Churchill War Rooms in central London. PA -
Supporters of Mr Sunak wait for his arrival ahead of the campaign launch. Bloomberg -
Mr Tugendhat makes a speech at the launch of his campaign. PA -
Mr Javid mops his brow while launching his campaign. Getty -
Ms Truss leaves for work after her announcement that she would be running for the leadership of the Conservative Party. Getty
Mr Sunak also said he would prefer to “take the stairs” than be stuck in a lift with Labour leader Sir Keir Starmer or Scotland's First Minister Nicola Sturgeon.
But Ms Truss said she would pick Ms Sturgeon in that scenario, as the idea of being trapped with the Labour leader was “extremely boring”.
Elsewhere, Mr Sunak took aim at “woke-ish ideology”, pledging to tackle “lefty woke culture” and never let “political correctness” get in the way of people’s safety.
Asked if the BBC had a Tory or Labour bias, or if it was neutral, he said: “There’s no woke bias option in there.”
Ms Truss said anyone who believed the BBC was impartial was “kidding” themselves, and that she preferred “honest bias” to the pretence of neutrality.
Earlier, Mr Sunak said he would vote for the tax-cutting plans put forward by Ms Truss, despite previously calling them a “moral failure”.
Everything you need to know about Rishi Sunak - video
He has used the contest to fiercely criticise his rival’s economic strategy, but appeared to relent by admitting that if defeated he would back an emergency budget put forward by Ms Truss.
Mr Sunak told BBC Radio 4 that he would not leave politics if, as expected, he was defeated in the Tory leadership contest in less than two weeks.
During a visit to a factory near Norwich before Thursday’s hustings, Ms Truss hinted at more action down the line to ease the burden of mounting prices.
She said cutting taxes and boosting energy supply were the keys to addressing the surging cost of living.
Ms Truss said that if she was elected, her chancellor would look at “what else needs to be done” in a future budget.
As the Tory leadership contest enters its final stages, calls are growing for urgent government action to support households through what is predicted to be a difficult winter.
Supply issues linked to Russia’s invasion of Ukraine are one reason behind rapidly rising power bills, with recent warnings suggesting the average amount UK households pay for their gas and electricity could reach £6,000 next year.
Chancellor Nadhim Zahawi on Wednesday said “nothing is off the table” when it came to action on soaring energy bills, and that a freeze in the price cap would not deliver “targeted help” for those who need it most.
Everything you need to know about Liz Truss - video
Labour has called on both Tory leadership candidates to increase the windfall tax on oil and gas companies if they become prime minister, as the cap is set to rise again.
Energy regulator Ofgem is set to announce the autumn price cap for energy bills on Friday.
At the Norwich hustings, Mr Sunak said he would also look at more support for businesses hit with soaring energy costs.
Asked what help he would give them, as they do not benefit from a price cap, he said: “That’s clearly something that the new prime minister will have to look at.
"I’ll have to look at it and I’m happy to do so and would do so.”
