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Rachel Reeves is expected to outline measures to tackle the cost of living in her Budget by curbing energy, travel and other household bills. Treasury officials believe the Chancellor’s drive to curb regulated prices will also help to push down inflation and, in turn, the Government’s borrowing costs.

They are understood to have urged the Office for Budget Responsibility (OBR) - the official fiscal watchdog - to take account of lower inflation and interest rates when compiling its economic forecasts, which will determine how much Reeves can spend while meeting her own fiscal rules.

If the OBR accepts the argument, it could hand Reeves an estimated £6 billion boost to her Budget arithmetic, according to analysis by Bloomberg Economics. View 2 Images

The Chancellor is fac

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