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Chancellor Reeves has announced she is preparing "targeted steps to address cost of living pressures" in next month's Budget.

In comments to media outlets, she stated that curbing inflation is a joint responsibility of both the administration and the Bank of England.

The United Kingdom's price growth is projected to be the highest among the Group of Seven developed nations this year and the following year.

Potential Energy Cost Measures

Sources suggest the administration could intervene to reduce utility costs, for instance by reducing the current 5% level of VAT applied on energy supplies.

Another possibility is to lower some of the policy costs presently added to bills.

Fiscal Limitations and Analyst Predictions

The government will obtain the latest report from the official forecaster, the OBR, on the start of the week, which will show how much scope there is for these actions.

The consensus from the majority of analysts is that the Chancellor will have to declare higher taxes or budget cuts in order to meet her self-imposed fiscal targets.

Previously on Thursday, estimates indicated there was a £22bn shortfall for the chancellor to address, which is at the lower end of expectations.

"It is a shared responsibility between the Bank of England and the administration to continue tackling some of the causes of price increases," Reeves told reporters in the US capital, at the conferences of the International Monetary Fund and global financial institution.

Tax Pledges and Global Issues

While much of the focus has been on likely tax rises, the Treasury chief said the most recent information from the OBR had not altered her commitment to campaign commitments not to increase rates on income tax, VAT or National Insurance.

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

Global Trade Tensions

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

Recent statement by Chinese authorities to tighten trade restrictions on critical minerals and other resources that are key for high-technology production led US President Donald Trump to propose an additional 100% tariff on imports from the Asian country, increasing the prospect of an all-out commercial conflict between the two largest economies.

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

Asked about accepting the US offer to participate in its battle with China, Reeves said she was "very concerned" by Chinese actions and encouraged the Chinese government "not to put up barriers and restrict access."

She said the move was "bad for the international commerce and generates further challenges."

"I believe there are areas where we must address China, but there are also significant prospects to trade with Chinese markets, including financial services and other areas of the economic system. We've got to get that balance right."

The Treasury chief also affirmed she was cooperating with international partners "regarding our own critical minerals approach, so that we are reduced dependence."

NHS Medicine Costs and Investment

The Chancellor also acknowledged that the price the National Health Service pays for drugs could rise as a result of ongoing negotiations with the US government and its pharmaceutical firms, in exchange for reduced taxes and investment.

Some of the biggest global drug companies have said lately that they are either halting or scrapping operations in the UK, with some blaming the low prices they are receiving.

Recently, the government science advisor said the cost the health service pays for drugs would need to go up to prevent companies and pharmaceutical investment departing from the United Kingdom.

Reeves told media: "We have seen due to the cost structure, that clinical trials, innovative medicines have not been available in the United Kingdom in the way that they are in other EU nations."

"The objective is to guarantee that patients getting treatment from the National Health Service are able to receive the top critical treatments in the world. And so we are examining this situation, and... seeking to attract increased investment into the UK."