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Treasury head Rachel Reeves has announced she is planning "targeted steps to address household expense pressures" in the upcoming financial statement.

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

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

Possible Energy Cost Measures

Reports indicate the administration could take action to reduce utility costs, such as by cutting the present 5% level of VAT charged on energy.

An additional approach is to cut some of the policy costs currently included in bills.

Budgetary Constraints and Expert Expectations

The government will receive the latest assessment from the official forecaster, the OBR, on the start of the week, which will show how much room there is for these actions.

The expectation from most experts is that Reeves will have to announce tax rises or expenditure reductions in order to adhere to her voluntary fiscal targets.

Previously on Thursday, calculations suggested there was a £22bn gap for the chancellor to resolve, which is at the lower end of projections.

"There's a joint task between the Bank of England and the administration to bear down further on some of the sources of inflation," the Chancellor informed the BBC in Washington, at the conferences of the IMF and World Bank.

Revenue Pledges and International Concerns

While much of the attention has been on likely tax increases, the Treasury chief said the most recent figures from the OBR had not altered her commitment to manifesto promises not to raise rates on earnings tax, sales tax or social security contributions.

She blamed an "uncertain world" with increasing international and commercial concerns for the Budget tax moves, likely to be directed on those "with the broadest shoulders."

Global Economic Tensions

Referring to worries about the United Kingdom's commercial links with the Asian nation she said: "The UK's security interests always take priority."

Last week's declaration by China to increase trade restrictions on critical minerals and other resources that are crucial for high-technology manufacturing led American leader the US President to propose an extra 100% tariff on goods from China, raising the possibility of an full-scale trade war between the two economic giants.

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

Asked about considering the US offer to join its dispute with China, Reeves said she was "deeply worried" by China's actions and called on the Chinese government "to avoid restrictions and limit trade."

She said the move was "harmful for the world economy and creates additional challenges."

"It is my opinion there are areas where we must confront Chinese policies, but there are also significant chances to trade with Chinese markets, including financial services and other areas of the economy. We've got to achieve that equilibrium correct."

The Treasury chief also confirmed she was cooperating with G7 counterparts "regarding our own essential resources plan, so that we are more independent."

Health Service Medicine Pricing and Funding

The Chancellor also acknowledged that the price the NHS pays for medicines could go up as a result of current discussions with the US government and its pharmaceutical firms, in exchange for reduced taxes and capital.

Some of the biggest global drug companies have said recently that they are either delaying or scrapping investments in the United Kingdom, with several attributing the low prices they are receiving.

Recently, the Science Minister said the price the health service spends on medicines would must go up to stop firms and drug research funding departing from the United Kingdom.

Reeves told the BBC: "It has been observed as a result of the payment system, that medical research, innovative medicines have not been offered in the UK in the extent that they are in other European countries."

"Our aim is to make sure that people receiving treatment from the National Health Service are able to receive the finest essential drugs in the globe. And so we are examining this situation, and... aiming to obtain additional capital into the UK."