Ministers must be prepared to scrap expensive "white elephant" projects to help "unleash the economy" after Brexit, the Chief Secretary to the Treasury says today.

Liz Truss, who is leading a major review of Government spending this year, says she will examine "all major investment projects" funded by Whitehall to judge their contribution to prosperity.

The announcement is likely to be welcomed by Tory MPs opposed to controversial projects such as the £56 billion HS2 rail line.

In an article hailing The Telegraph's "bold" campaign for a greater defence of free markets, Ms Truss, seen as a possible contender for the Tory leadership, says Brexit should be used as an opportunity to give voters more control over their lives.

She declares that low taxes are "a route to self-determination" and suggests Britain should be learning from Tokyo's ultra liberal planning system as a model for creating more affordable homes.

She also warned against a "spending bidding war with Labour."

She states: "This year’s Spending Review will set government budgets from 2020; and it’s vital that, accompanied with supply-side reforms, we use it as a catalyst to unleash the economy.

"We will conduct a zero-based capital review – examining all major investment projects across Government and judging their contribution to future prosperity. We will also look at how budgets contribute to human capital, including how much they genuinely boost aspiration and opportunity.

"In reviewing this evidence, we must be prepared to junk the white elephants, the programmes that haven’t worked ... Growth and bang for buck must take precedence."