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Treasury head Rachel Reeves has stated she is preparing "specific steps to address cost of living issues" in next month's financial statement.

During an interview with media outlets, she noted that lowering inflation is a shared task of both the government and the Bank of England.

The UK's price growth is forecast to be the highest among the G7 industrialized countries this calendar year and next.

Potential Energy Cost Measures

It is understood the administration could take action to bring down energy bills, such as by slashing the present 5% rate of value-added tax applied on energy supplies.

Another option is to lower some of the regulatory levies currently added to household expenses.

Budgetary Limitations and Analyst Expectations

The government will receive the next assessment from the official forecaster, the Office for Budget Responsibility, on Monday, which will reveal how much scope there is for such actions.

The expectation from the majority of experts is that Reeves will have to declare tax increases or expenditure reductions in order to adhere to her declared borrowing rules.

Earlier on Thursday, calculations indicated there was a twenty-two billion pound gap for the chancellor to fill, which is at the lower end of projections.

"There's a joint task between the Bank of England and the government to further reduce some of the causes of inflation," the Chancellor informed reporters in Washington, at the annual meetings of the International Monetary Fund and World Bank.

Tax Pledges and Global Issues

While much of the attention has been on likely tax rises, the chancellor said the most recent information from the fiscal watchdog had not changed her pledge to campaign commitments not to raise tax levels on income tax, VAT or National Insurance.

She blamed an "unpredictable world" with rising geopolitical and commercial tensions for the Budget tax moves, likely to be directed on those "most able to pay."

Global Economic Tensions

Referring to concerns about the UK's trade ties with the Asian nation she said: "The UK's national security always are paramount."

Last week's statement by China to increase trade restrictions on rare earths and other materials that are crucial for advanced tech production led American leader the US President to threaten an further 100% tariff on goods from China, increasing the risk of an full-scale commercial conflict between the two economic giants.

The US Treasury Secretary described China's decision "economic coercion" and "a international production control attempt."

Questioned on considering the US offer to join its conflict 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 move was "damaging for the international commerce and generates additional headwinds."

"It is my opinion there are sectors where we should address Chinese policies, but there are also valuable prospects to trade with China's economy, including banking sector and other areas of the economic system. We've got to maintain that equilibrium correct."

The Treasury chief also affirmed she was cooperating with other major economies "on our own essential resources strategy, so that we are more independent."

Health Service Medicine Pricing and Investment

The Chancellor also acknowledged that the price the National Health Service spends on pharmaceuticals could increase as a result of current discussions with the Trump administration and its pharmaceutical firms, in return for reduced taxes and capital.

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

Last month, the government science advisor said the cost the health service pays for drugs would have to go up to prevent companies and drug research funding leaving the UK.

Reeves stated to the BBC: "We have seen as a result of the payment system, that drug testing, new drugs have not been available in the United Kingdom in the manner that they are in other continental states."

"We want to ensure that individuals receiving treatment from the National Health Service are able to receive the finest life-saving drugs in the globe. And so we are reviewing these issues, and... seeking to attract increased investment into the UK."