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The Rishi Sunak-backing Deputy Prime Minister blasted the Foreign Secretary’s promise to act “on day one” at No10. Ex-chancellor Mr Sunak says he wants to tackle inflation first.

Accusing Ms Truss of increasing spending as Treasury chief secretary, Mr Raab said: “Liz can answer for her policies and her record.

“People can see whether spending and headcount in the Civil Service went up or down.”

He also took a swipe at the fiscal plans of Penny Mordaunt, Kemi Badenoch and Tom Tugendhat, saying: “You can’t borrow your way out of an inflation crisis.”

Ms Truss wants a “bold new approach” to confront the economic crisis, including ditching green levies on energy bills.

She said yesterday: “What I want to achieve is the biggest change in our economic policy for 30 years. That’s the scale of the challenge we face.”

Those close to Ms Truss insist she has always kept a tight leash on spending and has proved consistently that she is fiscally responsible.

A source said: “The next election will be about the cost of living, so we need a Prime Minister who has a plan, credibility and experience on the economy.

“Liz is the change candidate on the economy, with the experience to deliver her plan from day one. No other candidate can say that.”

Former Tory leader Sir Iain Duncan Smith, who backs Ms Truss, said: “There is a genuine debate to be had here in the party about this.

“I think the Government and the Treasury, through a peculiar orthodoxy, is bound on the wrong course which could seriously damage us over the next two years.

“Over a year ago, the Bank of England actually kept on printing huge sums of money, which has inflated the economy as well as keeping interest rates low.

“It was the Treasury that signed off on that money printing – the Chancellor no less.

“So before they say, ‘Oh it’s independent’, the Treasury has the right to say no to the money printing bit and they didn’t. That has fuelled inflation.”

Sir Iain said of the current economic course: “If you have the tax rates at the rate they are with more to come – corporation tax – you are going to bring our economy into recession, that’s what’s forecast now.

“If we go into recession whilst we have high inflation, that’s stagflation.”

Mr Sunak, who has branded rivals’ tax cuts plans a “fairy tale”, has pledged to rip up remaining EU red tape if he becomes Prime Minister.

He has topped the first two voting rounds, but remains short of the 120 needed to put him in the final party members’ ballot.

International trade minister Penny Mordaunt is in second place, while Ms Truss is in third.

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