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Chancellor Rachel Reeves has announced she is preparing "focused steps to address household expense issues" in the upcoming financial statement.

In comments to the BBC, she noted that reducing price rises is a joint task of both the government and the central bank.

The UK's inflation rate is forecast to be the highest among the Group of Seven industrialized countries this year and next.

Potential Utility Cost Measures

Reports indicate the administration could intervene to lower energy bills, for instance by slashing the current 5% level of VAT charged on energy.

An additional option is to lower some of the policy costs presently added to bills.

Fiscal Limitations and Expert Expectations

The government will obtain the latest draft from the official forecaster, the Office for Budget Responsibility, on Monday, which will clarify how much space there is for such actions.

The view from the majority of economists is that Reeves will have to announce higher taxes or expenditure reductions in order to fulfill her voluntary borrowing rules.

Earlier on the same day, estimates showed there was a £22bn gap for the Treasury chief to fill, which is at the lower end of expectations.

"It is a collective job between the Bank of England and the administration to continue tackling some of the drivers of inflation," Reeves told reporters in Washington, at the annual meetings of the International Monetary Fund and global financial institution.

Tax Pledges and International Concerns

While a great deal of the attention has been on expected tax rises, the Treasury chief said the most recent data from the fiscal watchdog had not changed her commitment to election pledges not to raise tax levels on income tax, VAT or social security contributions.

She attributed an "unpredictable world" with increasing international and commercial tensions for the fiscal revenue measures, probably to be targeted on those "wealthiest."

Global Economic Disputes

Commenting on concerns about the UK's commercial links with the Asian nation she said: "The UK's security interests invariably come first."

Recent statement by Chinese authorities to increase trade restrictions on rare earths and other resources that are key for high-technology production led US President the US President to propose an further 100% tariff on imports from the Asian country, increasing the prospect of an all-out trade war between the two largest economies.

The American finance chief labeled the Chinese decision "economic coercion" and "a global supply chain power grab."

Questioned on considering the American proposal to join its conflict with China, Reeves said she was "very concerned" by Chinese actions and encouraged the Beijing authorities "to avoid restrictions and restrict access."

She said the move was "bad for the global economy and generates further obstacles."

"It is my opinion there are sectors where we should address Chinese policies, but there are also significant chances to sell into China's economy, including financial services and other sectors of the economic system. We've got to achieve that balance right."

The Treasury chief also stated she was working with international partners "on our own essential resources approach, so that we are more independent."

NHS Medicine Costs and Funding

Reeves also acknowledged that the cost the National Health Service spends on drugs could rise as a result of current discussions with the US government and its pharmaceutical firms, in return for reduced taxes and investment.

A number of the biggest global drug companies have said lately that they are either halting or abandoning projects in the UK, with several blaming the low prices they are receiving.

Last month, the government science advisor said the cost the NHS spends on drugs would must increase to halt businesses and pharmaceutical investment leaving the UK.

Reeves stated to media: "We have seen due to the cost structure, that medical research, recent pharmaceuticals have not been available in the United Kingdom in the manner that they are in other EU nations."

"The objective is to ensure that people receiving care from the National Health Service are able to access the top life-saving treatments in the globe. And so we are looking at these issues, and... aiming to attract additional funding into Britain."