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Treasury head Rachel Reeves has revealed she is preparing "focused action to deal with household expense pressures" in next month's financial statement.

In comments to the BBC, she noted that curbing inflation is a shared responsibility of both the administration 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 the following year.

Possible Utility Cost Measures

Sources suggest the administration could take action to bring down utility costs, such as by slashing the current 5% level of VAT charged on energy.

Another approach is to lower some of the policy costs currently included in bills.

Fiscal Constraints and Analyst Expectations

The administration will receive the latest draft from the official forecaster, the OBR, on the start of the week, which will reveal how much room there is for such measures.

The view from most analysts is that the Chancellor will have to declare tax rises or expenditure reductions in order to meet her declared fiscal targets.

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

"It is a joint job between the Bank of England and the government to further reduce some of the sources of price increases," Reeves told the BBC in Washington, at the annual meetings of the International Monetary Fund and World Bank.

Revenue Pledges and International Issues

While a great deal of the attention has been on expected tax rises, the Treasury chief said the latest information from the OBR had not altered her commitment to manifesto promises not to increase tax levels on earnings tax, VAT or National Insurance.

She blamed an "uncertain global environment" with rising international and commercial concerns for the Budget tax moves, probably to be directed on those "wealthiest."

International Trade Tensions

Referring to concerns about the United Kingdom's economic relations with China she said: "Our security interests invariably take priority."

Last week's declaration by Chinese authorities to tighten trade restrictions on rare earths and other resources that are crucial for high-technology production led American leader the US President to propose an extra 100% import tax on goods from the Asian country, raising the risk of an full-scale commercial conflict between the two global powers.

The American finance chief called China's move "commercial pressure" and "a international production control attempt."

Asked about considering the US offer to join its conflict with China, Reeves said she was "very concerned" by China's measures and urged the Chinese government "to avoid restrictions and restrict access."

She said the action was "harmful for the global economy and generates further obstacles."

"In my view there are areas where we should address Chinese policies, but there are also important opportunities to export to China's economy, including banking sector and other sectors of the economy. We've got to get that equilibrium appropriate."

The Treasury chief also confirmed she was working with international partners "on our own essential resources approach, so that we are more independent."

Health Service Medicine Pricing and Funding

Reeves also acknowledged that the price the NHS spends on pharmaceuticals could increase as a result of current talks with the US government and its drugs companies, in return for lower tariffs and funding.

A number of the biggest global pharmaceutical manufacturers have said recently that they are either delaying or abandoning projects in the United Kingdom, with some attributing the modest returns they are getting.

Recently, the government science advisor said the cost the health service spends on drugs would must increase to stop companies and pharmaceutical investment leaving the United Kingdom.

Reeves informed the BBC: "It has been observed as a result of the cost structure, that clinical trials, new drugs have not been available in the UK in the manner that they are in other EU nations."

"Our aim is to ensure that patients receiving care from the NHS are able to obtain the best life-saving treatments in the globe. And so we are examining all of that, and... seeking to attract more funding into Britain."