Morrisons has become the first of the big four supermarkets to pledge a price match guarantee against discounters Aldi and Lidl in the latest episode of the ferocious price war.

The Bradford-based retailer, which has more than 500 stores, is launching a new loyalty card scheme which it says will see customers given additional points if their comparable shop would have been cheaper elsewhere.

It is part of a previously-announced plan to invest £1 billion in price cuts over three years as chief executive Dalton Philips battles sliding sales and plunging profits.

Mr Philips said the new Match & More scheme was "the most comprehensive price match and points scheme in the UK".