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Treasury head Reeves has announced she is preparing "specific action to deal with cost of living challenges" in the upcoming financial statement.

During an interview with the BBC, she stated that reducing price rises is a shared responsibility of both the government and the Bank of England.

The UK's inflation rate is expected to be the highest among the Group of Seven developed nations this year and next.

Potential Energy Bill Measures

It is understood the administration could take action to bring down energy bills, for instance by reducing the present 5% rate of value-added tax charged on energy.

An additional option is to cut some of the regulatory levies presently added to bills.

Fiscal Limitations and Analyst Expectations

The government will obtain the latest assessment from the official forecaster, the Office for Budget Responsibility, on Monday, which will reveal how much room there is for these actions.

The expectation from the majority of economists is that the Chancellor will have to announce higher taxes or expenditure reductions in order to adhere to her self-imposed borrowing rules.

Previously on the same day, analysis showed there was a £22bn deficit for the Treasury chief to fill, which is at the more modest range of projections.

"It is a joint task between the central bank and the administration to bear down further on some of the drivers of price increases," the Chancellor told the BBC in Washington, at the yearly gatherings of the IMF and global financial institution.

Tax Pledges and International Concerns

While much of the focus has been on likely tax rises, the chancellor said the most recent data from the fiscal watchdog had not changed her vow to election pledges not to raise rates on earnings tax, VAT or social security contributions.

She blamed an "unpredictable global environment" with growing geopolitical and commercial issues for the fiscal tax moves, likely to be directed on those "with the broadest shoulders."

Global Trade Tensions

Referring to worries about the UK's economic relations with the Asian nation she said: "Our security interests always come first."

Last week's declaration by China to increase export controls on rare earths and other resources that are key for high-technology manufacturing led American leader Donald Trump to suggest an extra 100% import tax on goods from the Asian country, raising the prospect of an all-out commercial conflict between the two largest economies.

The US Treasury Secretary labeled China's move "economic coercion" and "a global supply chain control attempt."

Questioned on accepting the American proposal to participate in its dispute with the Asian nation, the Chancellor said she was "very concerned" by China's measures and called on the Beijing authorities "not to put up barriers and restrict access."

She said the move was "damaging for the world economy and causes further challenges."

"In my view there are fields where we need to address Chinese policies, but there are also important prospects to export to Chinese markets, including financial services and other sectors of the economy. We've got to maintain that equilibrium appropriate."

The Treasury chief also confirmed she was collaborating with other major economies "on our own essential resources approach, so that we are reduced dependence."

NHS Drug Costs and Investment

Reeves also acknowledged that the price the National Health Service spends on pharmaceuticals could rise as a consequence of current negotiations with the Trump administration and its pharmaceutical firms, in return for lower tariffs and investment.

A number of the biggest global pharmaceutical manufacturers have said lately that they are either halting or scrapping investments in the United Kingdom, with several attributing the modest returns they are getting.

Recently, the Science Minister said the price the health service spends on drugs would have to go up to stop firms and drug research funding leaving the United Kingdom.

The Chancellor stated to the BBC: "We have seen as a result of the cost structure, that drug testing, recent pharmaceuticals have not been available in the UK in the way that they are in other European countries."

"Our aim is to guarantee that patients getting care from the NHS are able to receive the top critical treatments in the world. And so we are examining all of that, and... aiming to attract increased capital into Britain."