Liz Truss is said to be considering the largest ever reduction in VAT in a bid to combat the cost of living crisis.
It is believed that the Treasury is set to suggest plans to the next prime minister which are modelled on Gordon Brown's response to the 2008 financial crisis to help households across the country battle against rising energy bills.
One of the options reportedly on the table is cutting the 20% headline rate of VAT by up to 5%, saving the average household more than £1,300 per year.
