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Treasury head Reeves has announced she is planning "targeted action to deal with cost of living issues" in the upcoming financial statement.

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

The UK's price growth is forecast to be the highest among the G7 advanced economies this year and the following year.

Potential Energy Bill Measures

It is understood the government could take action to lower energy bills, for instance by cutting the current 5% level of VAT applied on energy supplies.

Another possibility is to lower some of the government charges currently included in bills.

Budgetary Limitations and Analyst Predictions

The government will receive the next draft from the independent fiscal watchdog, the OBR, on the start of the week, which will show how much room there is for such actions.

The consensus from the majority of experts is that the Chancellor will have to announce tax rises or expenditure reductions in order to adhere to her voluntary fiscal targets.

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

"It is a collective responsibility between the Bank of England and the government to continue tackling some of the drivers of price increases," Reeves informed reporters in Washington, at the annual meetings of the International Monetary Fund and global financial institution.

Revenue Commitments and Global Issues

While a great deal of the attention has been on probable tax rises, the chancellor said the most recent information from the OBR had not altered her vow to election pledges not to increase tax levels on income tax, sales tax or social security contributions.

She blamed an "unpredictable global environment" with increasing geopolitical and commercial issues for the fiscal tax moves, likely to be targeted on those "most able to pay."

International Economic Tensions

Commenting on worries about the UK's trade ties with the Asian nation she said: "Our security interests always come first."

Recent announcement by Chinese authorities 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 imports from China, increasing the possibility of an all-out trade war between the two largest economies.

The American finance chief called the Chinese decision "commercial pressure" and "a global supply chain control attempt."

Asked about considering the American proposal to participate in its dispute with China, Reeves said she was "deeply worried" by Chinese actions and urged the Beijing authorities "to avoid restrictions and restrict access."

She said the decision was "bad for the world economy and causes additional obstacles."

"It is my opinion there are areas where we must challenge Chinese policies, but there are also significant chances to export to Chinese markets, including financial services and other areas of the economic system. We've got to get that equilibrium appropriate."

The Treasury chief also stated she was working with international partners "regarding our own essential resources strategy, so that we are reduced dependence."

NHS Drug Pricing and Investment

Reeves also recognized that the price the National Health Service spends on medicines could increase as a result of current negotiations with the Trump administration and its drugs companies, in exchange for lower tariffs and investment.

Some of the world's largest drug companies have said recently that they are either pausing or canceling operations in the UK, with some attributing the modest returns they are getting.

Last month, the government science advisor said the price the health service spends on drugs would have to go up to stop companies and drug research funding leaving the UK.

Reeves told the BBC: "We have seen due to the pricing regime, that medical research, innovative medicines have not been provided in the UK in the manner that they are in other European countries."

"The objective is to guarantee that patients getting treatment from the National Health Service are able to access the top essential medicines in the world. And so we are reviewing this situation, and... seeking to attract additional capital into Britain."