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Treasury head Rachel Reeves has stated she is preparing "specific measures to address cost of living pressures" in the upcoming Budget.

During an interview with media outlets, she noted that lowering inflation is a joint duty of both the government and the central bank.

The United Kingdom's inflation rate is expected to be the most elevated among the G7 industrialized countries this calendar year and next.

Potential Energy Cost Measures

Sources suggest the government could take action to bring down utility costs, such as by reducing the current 5% rate of VAT applied on energy supplies.

A further possibility is to lower some of the policy costs presently added to household expenses.

Fiscal Constraints and Expert Expectations

The administration will receive the next report from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will show how much room there is for such actions.

The view from the majority of experts is that the Chancellor will have to announce tax increases or spending cuts in order to fulfill her self-imposed debt limits.

Previously on the same day, calculations suggested there was a £22bn deficit for the Treasury chief to resolve, which is at the lower end of forecasts.

"There's a collective task between the Bank of England and the government to bear down further on some of the causes of inflation," Reeves informed the BBC in Washington, at the conferences of the International Monetary Fund and World Bank.

Revenue Pledges and Global Concerns

While much of the attention has been on probable tax rises, the chancellor said the latest figures from the OBR had not changed her pledge to campaign commitments not to raise tax levels on earnings tax, sales tax or National Insurance.

She blamed an "unpredictable global environment" with growing geopolitical and trade issues for the Budget revenue measures, likely to be focused on those "wealthiest."

International Economic Tensions

Addressing concerns about the UK's economic relations with China she said: "Our security interests invariably are paramount."

Last week's announcement by China to increase trade restrictions on rare earths and other resources that are key for high-technology production led US President Donald Trump to propose an further 100% tariff on imports from China, raising the risk of an all-out commercial conflict between the two largest economies.

The US Treasury Secretary called the Chinese move "economic coercion" and "a global supply chain control attempt."

Inquired about accepting the American proposal to participate in its battle with the Asian nation, the Chancellor said she was "deeply worried" by China's measures and encouraged the Chinese government "to avoid restrictions and limit trade."

She said the action was "harmful for the world economy and generates additional challenges."

"In my view there are fields where we need to confront Chinese policies, but there are also significant prospects to export to China's economy, including financial services and other areas of the economy. We've got to get that equilibrium right."

The chancellor also affirmed she was working with international partners "on our own essential resources approach, so that we are reduced dependence."

NHS Medicine Costs and Investment

Reeves also acknowledged that the price the National Health Service pays for pharmaceuticals could go up as a result of ongoing discussions with the Trump administration and its pharmaceutical firms, in return for lower tariffs and funding.

Some of the world's largest pharmaceutical manufacturers have said lately that they are either halting or canceling operations in the United Kingdom, with some blaming the insufficient payments they are receiving.

Last month, the Science Minister said the cost the health service spends on medicines would must rise to prevent businesses and drug research funding departing from the UK.

The Chancellor informed media: "We have seen as a result of the payment system, that drug testing, innovative medicines have not been offered in the United Kingdom in the extent that they are in other continental states."

"Our aim is to guarantee that individuals receiving care from the National Health Service are able to obtain the best life-saving treatments in the world. And so we are reviewing these issues, and... seeking to obtain additional capital into the UK."