Rachel Reeves is reportedly drawing out plans to cut energy bills and ease the cost of living.
The Chancellor of the Exchequer told Downing Street on Tuesday that she had asked officials to work up budget proposals in order to lower household energy costs, The Times reports.
Reeves said 'all options were on the table', which is understood to include lowering the five percent VAT rate on domestic energy bills to zero.
A Treasury source said: 'The chancellor told cabinet that both she and the prime minister are determined to tackle inflation, address the cost of living crisis and get serious about bringing down energy bills.'
The move would save consumers around £86 a year and cost the Treasury approximately £1.75 billion.
