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Treasury head Rachel Reeves has revealed she is preparing "targeted steps to tackle household expense challenges" in next month's Budget.

During an interview with media outlets, she stated that lowering inflation is a shared responsibility of both the administration and the central bank.

The UK's inflation rate is projected to be the highest among the G7 industrialized countries this year and next.

Possible Utility Cost Interventions

Reports indicate the government could intervene to bring down energy bills, for instance by cutting the current 5% rate of VAT applied on energy supplies.

A further approach is to cut some of the policy costs currently included in bills.

Budgetary Limitations and Analyst Expectations

The government will obtain the latest report from the official forecaster, the OBR, on Monday, which will clarify how much scope there is for these measures.

The consensus from most experts is that Reeves will have to announce tax rises or expenditure reductions in order to meet her self-imposed fiscal targets.

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

"There's a collective job between the Bank of England and the administration to bear down further on some of the drivers of price increases," Reeves informed the BBC in Washington, at the yearly gatherings of the IMF and World Bank.

Tax Pledges and Global Issues

While a great deal of the focus has been on likely tax increases, the Treasury chief said the most recent data from the OBR had not altered her commitment to campaign commitments not to raise tax levels on earnings tax, sales tax or National Insurance.

She blamed an "unpredictable world" with growing international and commercial tensions for the fiscal tax moves, likely to be targeted on those "with the broadest shoulders."

International Trade Disputes

Addressing apprehensions about the United Kingdom's trade ties with China she said: "The UK's security interests always are paramount."

Last week's announcement by Chinese authorities to increase trade restrictions on rare earths and other resources that are key for high-technology production led American leader Donald Trump to threaten an extra 100% import tax on imports from China, increasing the prospect of an all-out commercial conflict between the two largest economies.

The American finance chief described the Chinese action "economic coercion" and "a international production control attempt."

Questioned on considering the American proposal to participate in its battle with China, the Chancellor said she was "deeply worried" by China's actions and urged the Beijing authorities "to avoid restrictions and restrict access."

She said the decision was "harmful for the world economy and creates additional obstacles."

"It is my opinion there are sectors where we should address China, but there are also important opportunities to export to Chinese markets, including financial services and other areas of the economy. We've got to achieve that balance right."

The Treasury chief also confirmed she was working with G7 counterparts "regarding our own essential resources approach, so that we are less reliant."

NHS Medicine Costs and Investment

The Chancellor also acknowledged that the cost the NHS spends on drugs could go up as a result of current discussions with the US government and its pharmaceutical firms, in exchange for lower tariffs and capital.

A number of the biggest global pharmaceutical manufacturers have said in recent statements that they are either delaying or abandoning investments in the United Kingdom, with some blaming the insufficient payments they are obtaining.

Last month, the Science Minister said the price the health service pays for drugs would have to go up to stop businesses and pharmaceutical investment leaving the United Kingdom.

The Chancellor stated to media: "We have seen because of the cost structure, that medical research, recent pharmaceuticals have not been provided in the UK in the manner that they are in other European countries."

"Our aim is to make sure that patients receiving treatment from the National Health Service are can access the finest essential medicines in the world. And so we are looking at this situation, and... aiming to obtain more investment into Britain."