Rishi Sunak and Sir Keir Starmer took turns answering questions from Sky News and a live audience, with a snap poll suggesting the Labour leader performed better on the night.
But what did we learn from their responses about the key issues facing the country?
Here’s a look at the key points from the Sky News leaders’ event in Grimsby.
Image: The Sky News leaders’ event was held in Grimsby
NHS waiting lists
With the NHS England waiting list up to about 7.5 million cases, there was some angry shouting from the audience when Mr Sunak brought up the industrial action taken up by staff in the health service.
“We’ve not made as much progress on cutting waiting lists as I would have liked,” he said.
“That was something that I was keen to do, and it has proved more difficult for a number of reasons, obviously recovering from a pandemic is not easy.”
He faced groans and boos when he said: “I think everyone knows the impact the industrial action has had, that’s why we haven’t made as much [progress].”
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0:18
Sunak booed as he arrives at Sky News event
Sir Keir said the government could not afford to meet junior doctors’ pay-rise demands but said Labour would “get the room and settle this dispute”.
Tory tax burden
Mr Sunak repeated his promise of “tax cuts for people at every stage for people at every stage of their life”.
Facing questions about the tax burden potentially being higher than it is now under a future Conservative government, Mr Sunak said: “What our manifesto announced is the tax cuts for people at every stage of their life – for people in work, for people that are setting up small businesses, that are self-employed, for those young people who want to buy their first home, for pensioners and for families.”
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3:32
Did Sunak’s claims add up?
D-Day fallout
“It hasn’t been an easy 18 months in general,” Mr Sunak admitted, when asked about what has gone so wrong for his party.
“I’m going to keep fighting hard until last day of this election,” he said.
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1:24
Sunak ‘deeply sad’ over D-Day
But Mr Sunak’s decision to leave D-Day commemorations early sparked widespread backlash against the prime minister.
“I was incredibly sad to have caused people hurt and upset,” he said, adding he hopes people can forgive him.
National service
When an audience member asked why a young person today would believe the Tories have their best interests at heart, Mr Sunak said he is “incredibly excited” for his daughters to do national service.
“I think it will be transformative for our country,” he added.
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0:56
Sunak on ‘transformative’ national service
Tough questions for Starmer on tax
Addressing his tax plans, Sir Keir insisted “working people shouldn’t pay more tax” and repeated “no tax rises for working people”.
This includes income tax, VAT and National Insurance, but rises in fuel duty, for example, would impact working people, Rigby pointed out.
To help balance the scales, increasing capital gains tax could raise £14bn a year, Rigby said, but Sir Keir revealed “that is not in our manifesto”.
He said he’d be happy to pay more tax himself, despite being in the top 3% for amount of tax paid – after earning £128,000 and paying £44,000 in income tax last year.
“Yes, of course,” he said, reminding the audience his father was a toolmaker – with the often-repeated line causing some laughter in the audience – and his family “couldn’t make ends meet”.
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0:51
Starmer accused of being a ‘political robot’
VAT on private schools
Challenged on his plans for a VAT tax on private school education, Sir Keir told an audience member the party is removing a tax break – rather than adding a new tax.
“The position at the moment is there’s a tax break, so you pay VAT on other services, but you don’t pay for private schools,” he said.
“Now I understand why that’s been in place, but it’s a tax break that we are removing. It’s not an introduction of a new tax.”
Two-child benefit cap
Sir Keir confirmed there is no plan in his party’s manifesto to cut a two-child benefit cap, admitting it was a “difficult” decision.
“I can’t do something – I know the benefits of it and we will have a strategy for it – but I think people are fed up of politicians who before the election say we’ll do everything,” he said.
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4:20
Starmer challenged on ‘trust’
Small boat crossings and immigration
On small boats, Rigby confronted Mr Sunak about small boat crossings. More than 10,000 migrants have arrived in the UK by crossing the Channel in small boats in 2024 – a new record for this stage in the year.
Part of the Tory strategy to cut the number of crossings is the controversial Rwanda policy, which Mr Sunak again vowed would take off in July if he wins the election.
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2:17
Sunak: Immigration ‘too high’
Asked why, if he is so confident flights would take off in July, he didn’t prove this before calling an election, Mr Sunak said “it was the right moment” to go to the polls.
Meanwhile, Rigby outlined how net migration in the past three years stands at 1.9 million people – against 836,000 before Brexit.
With the figure more than doubling since leaving the European Union, Mr Sunak admitted “it’s too high”.
“I’m sure people feel frustrated about that,” he said. “The numbers are too high.”
Starmer distances from Corbyn
Questioned on trust, Sir Keir defended changing previous stances he held, including Labour policies.
He said the “country comes first, party second” and looked back at previous decisions to ask himself if they’re best for the nation, rather than Labour.
Reminded on his claim in the last election that Jeremy Corbyn would make a “great prime minister”, the Labour leader refused to answer directly if he believed that.
Instead, he repeated he was “certain” the party would lose the election in 2019.
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1:02
‘I was certain we would lose’
What we didn’t know about the leaders
Asked what he fears most about becoming prime minister, the Labour leader said he’s worried about the impact it will have on his family, including his children aged 16 and 13.
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0:58
‘The only fear I have is for my family’
Rigby asked Mr Sunak to tell the audience one thing they might not know about him.
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0:50
Sunak reveals ‘appalling diet’
He said he had an “appalling diet” due to his sweet tooth. Haribo and Twix are apparently his favourites.
A US judge has granted prediction markets platform Kalshi a temporary reprieve from enforcement after the state of Connecticut sent it a cease and desist order last week for allegedly conducting unlicensed gambling.
The Connecticut Department of Consumer Protection (DCP) sent Kalshi, along with Robinhood and Crypto.com, cease and desist orders on Dec. 2, accusing them of “conducting unlicensed online gambling, more specifically sports wagering, in Connecticut through its online sports event contracts.”
Kalshi sued the DCP a day later, arguing its event contracts “are lawful under federal law” and its platform was subject to the Commodity Futures Trading Commission’s “exclusive jurisdiction,” and filed a motion on Friday to temporarily stop the DCP’s action.
An excerpt from Kalshi’s preliminary injunction motion arguing that the DCP’s action violates federal commodities laws. Source: CourtListener
Connecticut federal court judge Vernon Oliver said in an order on Monday that the DCP must “refrain from taking enforcement action against Kalshi” as the court considers the company’s bid to temporarily stop the regulator.
The order adds that the DCP should file a response to the company by Jan. 9 and Kalshi should file further support for its motion by Jan. 30, with oral arguments for the case to be held in mid-February.
Kalshi does battle with multiple US states
Kalshi is a federally regulated designated contract maker under the CFTC and, in January, began offering contracts nationally that allow bets on the outcome of events such as sports and politics.
Its platform has become hugely popular this year and saw a record $4.54 billion monthly trading volume in November, attracting billions in investments, with Kalshi closing a $1 billion funding round earlier this month at a valuation of $11 billion.
However, multiple US state regulators have taken issue with Kalshi’s offerings, which have led to the company being embroiled in lawsuits over whether it is subject to state-level gambling laws.
Kalshi sued the New York State Gaming Commission in October after the regulator sent a cease and desist order claiming it offered a platform for sports wagering without a license.
In September, Massachusetts’ state attorney general sued Kalshi in state court, which the company asked to be tossed. So far this year, Kalshi has sued state regulators in New Jersey, Nevada, Maryland and Ohio, accusing each of regulatory overreach.
Sir Keir Starmer has called for a tougher approach to policing Europe’s borders ahead of a meeting between leaders to discuss a potential shake-up of the European Convention on Human Rights (ECHR).
The prime minister said the way in which the ECHR is interpreted in courts must be modernised, with critics long claiming the charter is a major barrier to deportations of illegal migrants.
His deputy, David Lammy, will today be in Strasbourg, France, with fellow European ministers to discuss reforms of how the agreement is interpreted in law across the continent.
In an opinion piece for The Guardian, Sir Keir and his Danish counterpart, Mette Frederiksen, said the change was necessary to prevent voters from turning to populist political opponents.
Image: Small boat crossings have risen this year. File pic: PA
What’s the issue with the ECHR?
The ECHR, which is the foundation of Britain’s Human Rights Act, includes the right to family life in its Article 8.
That is often used as grounds to prevent deportations of illegal migrants from the UK.
More on Asylum
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There has also been a rise in cases where Article 3 rights, prohibiting torture, were used to halt deportations over claims migrants’ healthcare needs could not be met in their home country, according to the Home Office.
The Conservatives and Reform UK have both said they would leave the ECHR if in power, while the Labour government has insisted it will remain a member of the treaty.
But Sir Keir admitted in his joint op-ed that the “current asylum framework was created for another era”.
“In a world with mass mobility, yesterday’s answers do not work. We will always protect those fleeing war and terror – but the world has changed, and asylum systems must change with it,” the two prime ministers wrote, as they push for a “modernisation of the interpretation” of the ECHR.
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2:16
System ‘more than broken’, says asylum seeker
What is happening today?
Mr Lammy is attending an informal summit of the Council of Europe.
He is expected to say: “We must strike a careful balance between individual rights and the public’s interest.
“The definition of ‘family life’ can’t be stretched to prevent the removal of people with no right to remain in the country [and] the threshold of ‘inhuman and degrading treatment’ must be constrained to the most serious issues.”
It is understood that a political declaration signed by the gathered ministers could carry enough weight to directly influence how the European Court of Human Rights interprets the treaty.
The UK government is expected to bring forward its own legislation to change how Article 8 is interpreted in UK courts, and is also considering a re-evaluation of the threshold for Article 3 rights.
Image: David Lammy will swap Westminster for Strasbourg today
The plans have been criticised by Amnesty International UK, which described them as weakening protections.
“Human rights were never meant to be optional or reserved for comfortable and secure times. They were designed to be a compass, our conscience, when the politics of fear and division try to steer us wrong,” Steve Valdez-Symonds, the organisation’s refugee and migrant rights programme director, said.
Sir Keir’s government has already adopted several hardline immigration measures – modelled on those introduced by Ms Federiksen’s Danish government – to decrease the number of migrants crossing the Channel via small boats.
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2:40
Beth Rigby: The two big problems with Labour’s asylum plan
Starmer-Macron deal ‘a sticking plaster’
Meanwhile, French far-right leader Jordan Bardella told The Daily Telegraph he would rewrite his country’s border policy to allow British patrol boats to push back small vessels carrying migrants into France’s waters if he were elected.
The National Rally leader called Sir Keir’s “one-in, one-out” agreement with Emmanuel Macron, which includes Britain returning illegal arrivals in exchange for accepting a matching number of legitimate asylum seekers, a “sticking plaster” and “smokescreen”.
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4:02
Far-right, 30, and France’s most popular politician
He said that only a complete overhaul of French immigration policy would stop the Channel crossings.
Mr Bardella is currently leading in opinion polls to win the first round of France’s next presidential election, expected to happen in 2027, to replace Mr Macron.
The race for the new US Federal Reserve chair is nearing the finish line, with US President Donald Trump reportedly set to begin interviewing finalists for the top job this week.
According to a report from the Financial Times on Tuesday, Treasury Secretary Scott Bessent has presented a list of four names to the White House.
One of these is former Fed governor Kevin Warsh, whom Bessent is scheduled to meet with on Wednesday. Another is National Economic Council director Kevin Hassett, who is seen as the frontrunner for the role.
Another two names would be picked from a list of other finalists, which includes Fed governors Christopher Waller and Michelle Bowman, and BlackRock chief investment officer Rick Rieder.
Trump and Bessent are expected to hold at least one interview next week, as a decision looks likely to be announced in January.
However, Trump has revealed he already has his eye on one particular candidate.
“We’re going to be looking at a couple different people, but I have a pretty good idea of who I want,” Trump said to journalists on Air Force One on Tuesday.
Kevin Hassett is a frontrunner for Fed chair role
The upcoming round of interviews suggests that Hassett may not be the clear lock in for the role as previously thought, though he is seen as the favorite.
Earlier this month, prediction market odds on Kalshi and Polymarket shot up for Hassett significantly following comments from Trump at the White House on Dec. 2.
While welcoming guests, Trump labeled Hassett as “potential Fed chair” leading many to assume the president had let a major hint slip.
With Hassett’s odds spiking to 85% after Trump’s comments last week, they have since declined to around 73% for Hassett, while Warsh’s odds sit at 13% on Kalshi at the time of writing, which has floated around this range over December.
Regardless of who ends up taking over as chair, the move is bound to impact crypto markets under the new leadership.
If elected, Hassett has asserted that he will be apolitical in terms of running the Fed, despite his close ties to Trump. Speaking with The Wall Street Journal this week, Hassett said that “You just do the right thing” when asked if he would blindly follow orders from Trump.
“Suppose that inflation has gotten from, say, 2.5% to 4%. You can’t cut,” Hassett said, adding that he would rely on his own “judgment, which I think the president trusts.”