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Treasury head Reeves has announced she is preparing "targeted action to address household expense pressures" in next month's financial statement.

Speaking to media outlets, she emphasized that curbing inflation is a collective duty of both the administration and the central bank.

The UK's price growth is expected to be the highest among the G7 developed nations this year and the following year.

Possible Utility Bill Measures

Reports indicate the government could intervene to lower utility costs, for instance by reducing the current 5% level of VAT applied on energy.

A further approach is to reduce some of the government charges presently included in bills.

Fiscal Limitations and Expert Predictions

The government will receive the latest report from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will reveal how much space there is for such measures.

The expectation from most experts is that the Chancellor will have to declare higher taxes or spending cuts in order to adhere to her voluntary borrowing rules.

Earlier on the same day, analysis showed there was a £22 billion deficit for the chancellor to address, which is at the lower end of forecasts.

"It is a joint job between the central bank and the government to bear down further on some of the causes of price increases," the Chancellor stated to reporters in Washington, at the annual meetings of the International Monetary Fund and World Bank.

Revenue Pledges and Global Issues

While a great deal of the focus has been on likely tax rises, the Treasury chief said the most recent data from the fiscal watchdog had not changed her commitment to election pledges not to raise rates on income tax, VAT or National Insurance.

She attributed an "unpredictable global environment" with increasing international and trade issues for the fiscal revenue measures, likely to be directed on those "with the broadest shoulders."

Global Economic Tensions

Addressing concerns about the UK's economic relations with China she said: "Our national security always take priority."

Recent statement by China to tighten export controls on critical minerals and other materials that are crucial for advanced tech manufacturing led US President Donald Trump to suggest an additional 100% tariff on imports from China, raising the risk of an all-out trade war between the two largest economies.

The US Treasury Secretary described the Chinese action "economic coercion" and "a global supply chain power grab."

Inquired about accepting the US offer to participate in its battle with China, Reeves said she was "very concerned" by China's actions and called on the Chinese government "to avoid restrictions and restrict access."

She said the decision was "harmful for the world economy and causes further headwinds."

"In my view there are fields where we must confront China, but there are also valuable prospects to export to China's economy, including financial services and other sectors of the economic system. We've got to achieve that balance correct."

The Treasury chief also stated she was working with other major economies "on our own critical minerals approach, so that we are more independent."

Health Service Drug Costs and Investment

Reeves also acknowledged that the cost the National Health Service pays for drugs could go up as a result of ongoing discussions with the Trump administration and its drugs companies, in exchange for reduced taxes and capital.

A number of the biggest global drug companies have said recently that they are either halting or abandoning operations in the United Kingdom, with several blaming the insufficient payments they are receiving.

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

Reeves stated to media: "It has been observed due to the payment system, that clinical trials, innovative medicines have not been available in the United Kingdom in the extent that they are in other continental states."

"Our aim is to guarantee that patients receiving treatment from the NHS are can obtain the best essential treatments in the globe. And so we are reviewing this situation, and... seeking to attract more funding into the UK."