It's fair to give wealthiest more money back - Truss

Liz Truss has said it is fair to give higher earners more money back through tax cuts, saying recent Tory policy has failed to grow the economy.

The Tory leadership hopeful has pledged to reverse a National Insurance rise.

The Institute for Fiscal Studies said the cut would be worth less than £50 to lower income households but for those taking home more than £65,000 it could be worth £1,000 or even more.

Ms Truss said higher earners pay more tax, so would gain more from cuts.

"Of course, there are some people who don't pay tax at all," she told the BBC. "But to look at everything through the lens of redistribution I believe is wrong because what I'm about is about growing the economy and growing the economy benefits everybody."

Ms Truss, who is the favourite to win against rival Rishi Sunak according to pollsters, said that the economic debate over the past 20 years has been dominated by the issue of distribution of income.

However, speaking on Sunday with Laura Kuenssberg, she said: "What's happened is we have had relatively low growth so we've had not more than an average of 1% growth and that has been holding our country back."

She said "it is fair" to give higher earners more money back through tax cuts.

But Mr Sunak, speaking on the same programme, said that it is right to "focus the most help on the most vulnerable".

Both candidates for Tory leader - and prime minister - are under pressure to announce measures to help households with the soaring cost of energy which has contributed to high levels of inflation.

Ms Truss has promised she will "act immediately" and announce a plan to deal with soaring energy costs within a week if she becomes prime minister on Tuesday. However she decline to give any details.

Earlier in her campaign to succeed Boris Johnson, Ms Truss told the Financial Times that she rejected "handouts" as a means of helping people cope with the rising cost of living.

Mr Sunak said he would target further energy payments at pensioners and the low-paid, beyond those he announced as chancellor.

Ms Truss also reiterated her plan not to go ahead with a rise in corporation tax on businesses which she said would be "completely self-defeating".

Mr Sunak, in his former role as chancellor, had announced that the main tax rate for companies would rise from 19% to 25%.

She said: "What I know is that putting up tax on business is not going to attract more businesses to invest in this country."