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Chancellor Reeves has stated she is preparing "targeted steps to deal with household expense issues" in the forthcoming financial statement.

During an interview with the BBC, she noted that reducing inflation is a joint responsibility of both the government and the central bank.

The United Kingdom's inflation rate is forecast to be the highest among the Group of Seven advanced economies this year and next.

Potential Energy Bill Interventions

Sources suggest the government could intervene to reduce utility costs, such as by slashing the current 5% level of value-added tax charged on energy.

A further approach is to cut some of the regulatory levies currently included in bills.

Fiscal Constraints and Analyst Expectations

The government will receive the next draft from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will reveal how much space there is for these measures.

The view from most experts is that Reeves will have to announce tax rises or spending cuts in order to adhere to her declared fiscal targets.

Previously on the same day, calculations suggested there was a £22bn shortfall for the Treasury chief to fill, which is at the more modest range of projections.

"There's a collective job between the Bank of England and the government to bear down further on some of the drivers of price increases," Reeves told reporters in Washington, at the yearly gatherings of the IMF and global financial institution.

Revenue Pledges and Global Issues

While much of the focus has been on expected tax rises, the chancellor said the latest figures from the OBR had not altered her commitment to manifesto promises not to raise tax levels on income tax, VAT or social security contributions.

She attributed an "uncertain global environment" with rising international and trade concerns for the Budget revenue measures, probably to be directed on those "most able to pay."

International Trade Tensions

Referring to apprehensions about the UK's economic relations with the Asian nation she said: "Our national security always come first."

Recent statement by China to strengthen trade restrictions on critical minerals and other resources that are crucial for advanced tech production led US President the US President to propose an further 100% tariff on goods from China, raising the risk of an full-scale commercial conflict between the two global powers.

The American finance chief described the Chinese move "economic coercion" and "a international production power grab."

Asked about accepting the American proposal to participate in its conflict with the Asian nation, Reeves said she was "deeply worried" by China's actions and urged the Chinese government "not to put up barriers and limit trade."

She said the move was "harmful for the world economy and causes further headwinds."

"I believe there are fields where we should challenge China, but there are also important opportunities to sell into Chinese markets, including financial services and other areas of the economic system. We've got to maintain that equilibrium correct."

The Treasury chief also stated she was working with G7 counterparts "regarding our own essential resources approach, so that we are more independent."

Health Service Medicine Pricing and Funding

The Chancellor also recognized that the price the National Health Service pays for drugs could rise as a result of ongoing negotiations with the US government and its drugs companies, in return for lower tariffs and capital.

A number of the biggest global drug companies have said lately that they are either halting or abandoning investments in the United Kingdom, with several attributing the modest returns they are receiving.

Recently, the government science advisor said the cost the NHS spends on drugs would need to go up to prevent companies and drug research funding departing from the United Kingdom.

The Chancellor informed the BBC: "It has been observed as a result of the payment system, that drug testing, new drugs have not been offered in the UK in the way that they are in other European countries."

"Our aim is to ensure that individuals receiving care from the NHS are can obtain the finest essential drugs in the world. And so we are looking at these issues, and... seeking to obtain increased funding into Britain."