Tory leadership contender Liz Truss announces she would axe planned hike in corporation tax

Scrapping planned hike could cost around £16 billion

(Getty Images)

Liz Truss has announced she would scrap a planned multibillion-pound hike in corporation tax if she wins the race to succeed Boris Johnson in No 10.

The foreign secretary, who has previously vowed to cut taxes from “day one” if she wins the Tory leadership contest, also said there would be a “temporary moratorium” on the green energy levy.

But one rival campaign dismissed the announcement as part of a “bidding war” for voters after Ms emerged in third position in the second ballot of Tory MPs in Westminster on Thursday and is struggling to gain momentum ahead of Rishi Sunak and Penny Mordaunt.