Prime ministerial hopefuls clashed over the future of financial regulation in the City as ‘red tape’ plays an increasingly prominent role in the race to become the next leader of the Conservative Party.

At a televised debate in the West Midlands city of Stoke-on-Trent, foreign secretary Liz Truss criticised former chancellor Rishi Sunak for not moving fast enough to scrap EU directives governing the City in the wake of Brexit.