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Chancellor Reeves has revealed she is planning "focused action to tackle cost of living pressures" in next month's financial statement.

In comments to media outlets, she stated that reducing inflation is a joint responsibility of both the administration and the central bank.

The UK's price growth is projected to be the most elevated among the G7 developed nations this year and next.

Possible Energy Bill Interventions

Sources suggest the administration could take action to bring down utility costs, such as by cutting the current 5% level of value-added tax charged on energy supplies.

Another possibility is to cut some of the regulatory levies presently added to household expenses.

Budgetary Limitations and Analyst Expectations

The government will receive the latest assessment from the independent fiscal watchdog, the OBR, on Monday, which will clarify how much space there is for such measures.

The consensus from the majority of analysts is that the Chancellor will have to announce tax rises or budget cuts in order to adhere to her self-imposed fiscal targets.

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

"It is a shared responsibility between the Bank of England and the government to further reduce some of the drivers of price increases," the Chancellor told the BBC in the US capital, at the annual meetings of the IMF and World Bank.

Revenue Pledges and Global Issues

While much of the attention has been on expected tax rises, the chancellor said the latest information from the OBR had not altered her pledge to manifesto promises not to increase tax levels on income tax, sales tax or social security contributions.

She blamed an "unpredictable global environment" with rising geopolitical and commercial concerns for the fiscal revenue measures, likely to be directed on those "most able to pay."

International Economic Disputes

Commenting on worries about the UK's commercial links with the Asian nation she said: "The UK's national security always are paramount."

Recent declaration by China to strengthen export controls on rare earths and other resources that are key for high-technology production led US President Donald Trump to threaten an additional 100% import tax on imports from China, increasing the possibility of an full-scale trade war between the two largest economies.

The US Treasury Secretary called China's move "commercial pressure" and "a global supply chain control attempt."

Questioned on considering the US offer to participate in its dispute with China, the Chancellor said she was "very concerned" by China's measures and urged the Chinese government "not to put up barriers and restrict access."

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

"In my view there are fields where we must address China, but there are also valuable opportunities to trade with Chinese markets, including banking sector and other sectors of the economy. We've got to achieve that equilibrium right."

The Treasury chief also confirmed she was working with international partners "regarding our own critical minerals plan, so that we are more independent."

Health Service Drug Pricing and Funding

Reeves also admitted that the price the National Health Service spends on medicines could go up as a result of ongoing negotiations with the Trump administration and its drugs companies, in return for reduced taxes and investment.

A number of the world's largest drug companies have said lately that they are either pausing or canceling projects in the United Kingdom, with some blaming the modest returns they are receiving.

Last month, the Science Minister said the price the health service pays for medicines would need to increase to prevent companies and drug research funding leaving the UK.

The Chancellor told media: "We have seen because of the cost structure, that clinical trials, innovative medicines have not been offered in the United Kingdom in the way that they are in other European countries."

"The objective is to make sure that individuals getting care from the National Health Service are can access the top essential treatments in the world. And so we are reviewing these issues, and... looking to secure increased capital into Britain."