British PM candidate Truss sets out investment plans

LONDON (Reuters) - British Foreign secretary Liz Truss will set out plans to create new low-regulation investment zones and more freeports on Monday, stepping up her campaign to be next prime minister.

Truss and former finance minister Rishi Sunak are battling to replace Boris Johnson after a revolt against his scandal-ridden administration forced him to say he would stand down.

Truss is ahead in polls among members of the Conservative Party who will appoint their new leader who will then become prime minister. She has said her main focus would be boosting growth at a time of rising inflation and possible recession.

Truss said in a statement she will set out how, if she was appointed prime minister, she would work with local communities to identify sites for redevelopment for investment zones, or what her team have described as "full fat freeports".

Such zones would have a low tax burden to drive investment and construction, reduced planning restrictions and tailored regulations to encourage "high value industries" such as artificial intelligence.

"Instead, by creating these new Investment Zones we will finally prove to businesses that we're committed to their futures and incentivise them to stimulate the investment that will help deliver for hardworking people."

(Reporting by Elizabeth Piper; Editing by Andrew Cawthorne)