Rachel Reeves will tell Cabinet colleagues she is considering measures to reduce household energy bills as part of her budget response to rising inflation, expected to reach 4% when official figures are announced on Wednesday.

Economists forecast that consumer price inflation (CPI) will have reached double the Bank of England’s target in September, driven up from the 3.8% recorded in August by rising fuel and food inflation.

Speaking ahead of publication of the figures by the Office for National Statistics, a Treasury spokesman said that bringing down inflation was a priority, and the chancellor would convene a meeting of key cabinet colleagues on Thursday to stress its importance across government.

The spokesman specified that action to bring down energy prices was among the options being considered, the strongest indication yet that action on soaring consumer bills will feature in next month’s budget.

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The chancellor is understood to be considering cutting the 5% VAT rate on bills to zero, a move that would save billpayers around £80 a year and cost £2.5bn to implement.

Labour’s manifesto promised it would cut bills by £300 a year, but the last Ofgem price review saw a small increase driven by policy costs, leaving the government under pressure to reduce the impact of domestic energy rates that are the second-highest in Europe.

The spokesman said: “The chancellor’s view is that tackling the cost of living is urgent, and everything is on the table – including measures to bring down energy bills. She’s getting the whole of government to play its part, it’s her number one focus.”

The chancellor’s actions are a tacit acknowledgement that Wednesday’s inflation figures will be a difficult moment for a government that came to power promising to bring down the cost of living.

After peaking at more than 11% in October 2022, CPI returned to the Bank’s target of 2% in May last year, two months before Labour took office.

After briefly falling below 2% in September 2024 as higher energy prices from a year earlier dropped out of the calculation, it has marched steadily upwards, largely driven by energy and food prices.

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The Bank of England has forecast that this September’s figures will mark the peak of this inflation cycle for the same reason, with the Ofgem energy cap rising less this October than a year ago.

That underlines the importance of gas and electricity bills to household finances, the official figures and the government’s energy policy.

Campaigners and some energy companies have urged the government to bring down electricity bills by shifting levies for renewables and funding for social programs to general taxation, a move estimated to cost £6bn.

The Conservatives have said they would cut levies that currently pay for carbon taxes and older forms of renewable power subsidy, cutting bills by £165 a year.

A police officer has been injured after a night of violent protests outside an asylum hotel in Dublin – with six arrests made.

Bricks were thrown and fireworks were discharged outside the Citywest Hotel – with glass bottles used as missiles and a police van set on fire.

A Garda helicopter was also targeted with lasers, and the police service says some of those on the streets were seen carrying garden forks.

Commissioner Justin Kelly added: “This was obviously not a peaceful protest. The actions this evening can only be described as thuggery. This was a mob intent on violence.

“We will now begin the process of identifying those who committed crimes and we will bring those involved in this violence to justice.”

It is the second night of demonstrations after an alleged sexual assault in its vicinity in the early hours of Monday morning.

Some of the crowd threw stones and other missiles at the public order officers as they moved the protesters back – and water cannon was deployed at the scene.

A line of officers was preventing the protesters from approaching the hotel.

‘Those involved will be brought to justice’

Ireland’s premier, Taoiseach Micheál Martin, paid tribute to the officers who were on the frontline of the protests.

“There can be no justification for the vile abuse against them, or the attempted assaults and attacks on members of the force that will shock all right-thinking people,” he said.

Justice minister Jim O’Callaghan said those involved in the violence will be brought to justice.

“The scenes of public disorder we have witnessed at Citywest must be condemned,” he said.

“People threw missiles at Gardai, threw fireworks at them and set a Garda vehicle on fire.

“This is unacceptable and will result in a forceful response from the Gardai.

“Those involved will be brought to justice.”

‘No excuse’ for violence

The minister said a man had been arrested and had appeared in court in relation to the alleged assault in the vicinity of the hotel.

He added: “While I am not in a position to comment any further on this criminal investigation, I have been advised that there is no ongoing threat to public safety in the area.”

He said attacks on officers would “not be tolerated”, adding: “Peaceful protest is a cornerstone of our democracy. Violence is not.

“There is no excuse for the scenes we have witnessed.”

The demonstration on Monday night passed without a significant incident.

It comes two years after anti-immigrant demonstrators triggered a major riot in the centre of Dublin after three young children were stabbed.