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Chancellor Rachel Reeves has revealed she is planning "focused measures to deal with household expense challenges" in next month's financial statement.

Speaking to the BBC, she noted that reducing price rises is a shared task of both the government and the central bank.

The United Kingdom's inflation rate is projected to be the highest among the G7 developed nations this year and next.

Possible Energy Cost Interventions

Reports indicate the government could intervene to lower energy bills, such as by reducing the current 5% rate of value-added tax charged on energy.

A further approach is to lower some of the government charges currently added to household expenses.

Budgetary Constraints and Expert Predictions

The government will obtain the next assessment from the independent fiscal watchdog, the OBR, on the start of the week, which will reveal how much space there is for these actions.

The view from most economists is that the Chancellor will have to introduce higher taxes or spending cuts in order to meet her voluntary debt limits.

Previously on Thursday, calculations showed there was a £22bn gap for the Treasury chief to fill, which is at the more modest range of forecasts.

"It is a shared job between the Bank of England and the administration to bear down further on some of the drivers of inflation," Reeves told reporters in Washington, at the annual meetings of the International Monetary Fund and World Bank.

Revenue Pledges and International Concerns

While much of the focus has been on probable tax rises, the Treasury chief said the latest figures from the OBR had not changed her vow to manifesto promises not to raise tax levels on earnings tax, sales tax or social security contributions.

She blamed an "uncertain world" with increasing geopolitical and commercial issues for the Budget revenue measures, probably to be focused on those "with the broadest shoulders."

Global Economic Tensions

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

Last week's statement by Chinese authorities to increase export controls on rare earths and other materials that are essential for high-technology production led US President Donald Trump to threaten an extra 100% tariff on goods from the Asian country, increasing the prospect of an all-out commercial conflict between the two economic giants.

The American finance chief called China's action "economic coercion" and "a international production power grab."

Asked about accepting the US offer to join its battle 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 limit trade."

She said the decision was "bad for the world economy and creates additional headwinds."

"It is my opinion there are sectors where we should challenge Chinese policies, but there are also significant prospects to trade with China's economy, including financial services and other sectors of the economic system. We've got to maintain that balance right."

The chancellor also confirmed she was cooperating with G7 counterparts "regarding our own essential resources strategy, so that we are reduced dependence."

NHS Medicine Costs and Investment

Reeves also admitted that the cost the NHS pays for drugs could rise as a result of current talks with the Trump administration and its pharmaceutical firms, in return for lower tariffs and investment.

A number of the world's largest pharmaceutical manufacturers have said in recent statements that they are either halting or canceling investments in the United Kingdom, with some attributing the modest returns they are getting.

Recently, the Science Minister said the cost the health service pays for medicines would need to increase to prevent companies and pharmaceutical investment leaving the UK.

The Chancellor informed the BBC: "We have seen as a result of the cost structure, that medical research, recent pharmaceuticals have not been available in the United Kingdom in the manner that they are in other continental states."

"The objective is to ensure that patients receiving treatment from the National Health Service are able to obtain the top essential drugs in the globe. And so we are looking at this situation, and... aiming to secure increased funding into the UK."