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Treasury head Rachel Reeves has announced she is planning "specific action to deal with cost of living issues" in the upcoming Budget.

In comments to the BBC, she noted that lowering price rises is a collective responsibility of both the administration and the Bank of England.

The UK's price growth is projected to be the highest among the Group of Seven advanced economies this calendar year and the following year.

Possible Energy Cost Measures

Reports indicate the government could take action to bring down utility costs, such as by reducing the current 5% level of value-added tax applied on energy supplies.

A further option is to lower some of the government charges presently included in household expenses.

Budgetary Constraints and Expert Expectations

The administration will obtain the latest report from the official forecaster, the Office for Budget Responsibility, on Monday, which will reveal how much scope there is for such measures.

The consensus from the majority of analysts is that the Chancellor will have to introduce tax increases or spending cuts in order to adhere to her self-imposed debt limits.

Previously on Thursday, analysis showed there was a £22 billion shortfall for the chancellor to address, which is at the more modest range of expectations.

"There's a shared responsibility between the central bank and the government to bear down further on some of the drivers of price increases," the Chancellor stated to the BBC in Washington, at the conferences of the International Monetary Fund and global financial institution.

Revenue Commitments and International Issues

While much of the focus has been on likely tax increases, the Treasury chief said the most recent figures from the OBR had not altered her commitment to election pledges not to increase rates on income tax, VAT or social security contributions.

She attributed an "unpredictable world" with increasing international and trade tensions for the fiscal revenue measures, probably to be directed on those "wealthiest."

Global Economic Tensions

Commenting on concerns about the UK's economic relations with the Asian nation she said: "Our national security invariably come first."

Recent announcement by Chinese authorities to tighten export controls on critical minerals and other materials that are crucial for high-technology manufacturing led US President the US President to propose an additional 100% import tax on goods from the Asian country, raising the possibility of an full-scale trade war between the two economic giants.

The American finance chief called China's move "economic coercion" and "a global supply chain control attempt."

Asked about accepting the US offer to participate in its dispute with the Asian nation, the Chancellor said she was "extremely troubled" by China's actions and urged the Chinese government "not to put up barriers and restrict access."

She said the decision was "damaging for the international commerce and generates further challenges."

"I believe there are sectors where we need to challenge Chinese policies, but there are also significant prospects to trade with Chinese markets, including banking sector and other areas of the economic system. We've got to maintain that balance correct."

The chancellor also confirmed she was working with G7 counterparts "on our own critical minerals plan, so that we are reduced dependence."

Health Service Medicine Costs and Funding

Reeves also recognized that the cost the National Health Service spends on medicines could increase as a result of ongoing discussions with the Trump administration and its drugs companies, in return for reduced taxes and investment.

Some of the world's largest pharmaceutical manufacturers have said recently that they are either halting or abandoning projects in the UK, with several blaming the modest returns they are getting.

Last month, the government science advisor said the price the health service pays for medicines would have to rise to stop businesses and pharmaceutical investment departing from the United Kingdom.

Reeves stated to the BBC: "It has been observed because of the payment system, that medical research, innovative medicines have not been available in the United Kingdom in the extent that they are in other European countries."

"Our aim is to make sure that patients receiving care from the National Health Service are able to access the top critical treatments in the globe. And so we are examining these issues, and... seeking to secure more capital into Britain."