Boris Johnson insisted he is prepared to borrow to finance “great objectives”, as Tory leadership rival Jeremy Hunt claimed he would deliver Brexit sooner.

Mr Johnson pledged to use “headroom” to allow him to invest in multiple projects at the same time as cutting taxes if he succeeds Theresa May, stressing he is “prepared to borrow” but “keep fiscal responsibility”.

He also outlined a pledge to increase the number of special educational needs free schools as part of his £4.6 billion school funding plan, with questions raised about how he would fund this alongside extra police and broadband development.

On proroguing Parliament to push through Brexit, Mr Johnson said he did not want to do it nor expected to – but kept the option on the table.

View photos Conservative Party leadership contender Jeremy Hunt (Jeff Overs/BBC) More

He also claimed his words have been “totally taken out of context” when it came to reports he said “f*** business” when asked about business concerns last year.

He cited the same defence when questioned about previous remarks in which he referred to black people with “watermelon smiles”, to which he replied “in a wholly satirical way”, and women in burkas who “look like letterboxes”.

Mr Johnson continues to refuse to debate Mr Hunt head-to-head before ballot papers are sent out to the Tory membership, including a Sky News debate planned for Monday, which will now see Mr Hunt interviewed by Kay Burley.

In his own leadership pitch interview, Foreign Secretary Mr Hunt suggested he would be prepared to pursue “with a heavy heart” a no-deal Brexit despite the risks to business and said some of his spending pledges would be delayed as a result – although he would push on with a cut to corporation tax.

Mr Hunt sought to maintain a tough sounding approach to Brexit, including a warning he could refuse to pay part of Britain’s £39 billion exit bill to the EU if negotiations fail, while repeating that he believes he can secure a deal.

Mr Johnson, appearing on Sky News’ Sophy Ridge On Sunday, said of his spending plans: “There is headroom of about £22-25 billion at the moment.”

Asked if he was prepared to see borrowing increase, he added: “If it’s borrowing to finance great infrastructure projects and there is an opportunity to borrow at low rates and do things for the long-term benefit of the country then we should do them.”

He also said: “I’m prepared to borrow to finance certain great objectives but overall we will keep fiscal responsibility and keep going with the general trajectory of ensuring that this country pays its way and lives within its means.”

View photos Boris Johnson refuses to debate Mr Hunt head-to-head before ballot papers are sent out to Tory members (Peter Powell/PA) More

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