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Chancellor Rachel Reeves has revealed she is planning "specific steps to tackle cost of living pressures" in the forthcoming financial statement.

Speaking to media outlets, she noted that curbing inflation is a collective responsibility of both the administration and the Bank of England.

The United Kingdom's inflation rate is forecast to be the highest among the G7 industrialized countries this year and next.

Possible Utility Bill Measures

It is understood the government could take action to bring down energy bills, such as by cutting the present 5% rate of VAT charged on energy.

An additional option is to lower some of the government charges currently added to bills.

Fiscal Limitations and Expert Predictions

The administration will receive the next report from the official forecaster, the OBR, on the start of the week, which will clarify how much room there is for these actions.

The consensus from most economists is that Reeves will have to introduce tax rises or budget cuts in order to adhere to her declared borrowing rules.

Earlier on Thursday, estimates suggested there was a £22 billion shortfall for the Treasury chief to resolve, which is at the more modest range of expectations.

"There's a shared task between the Bank of England and the administration to bear down further on some of the drivers of inflation," Reeves told the BBC in Washington, at the annual meetings of the IMF and global financial institution.

Tax Pledges and International Issues

While much of the focus has been on expected tax increases, the chancellor said the latest information from the fiscal watchdog had not changed her vow to manifesto promises not to raise tax levels on income tax, VAT or National Insurance.

She attributed an "unpredictable world" with rising geopolitical and commercial concerns for the fiscal tax moves, probably to be directed on those "most able to pay."

International Economic Tensions

Commenting on concerns about the UK's economic relations with the Asian nation she said: "Our national security always take priority."

Last week's announcement by China to strengthen trade restrictions on critical minerals and other resources that are crucial for high-technology production led American leader Donald Trump to threaten an additional 100% import tax on imports from China, raising the prospect of an full-scale trade war between the two global powers.

The US Treasury Secretary labeled China's action "commercial pressure" and "a global supply chain control attempt."

Questioned on considering the American proposal to join its dispute with the Asian nation, Reeves said she was "deeply worried" by Chinese measures and urged the Beijing authorities "to avoid restrictions and limit trade."

She said the decision was "harmful for the world economy and generates additional headwinds."

"It is my opinion there are areas where we should confront China, but there are also significant opportunities to trade with Chinese markets, including financial services and other areas of the economy. We've got to achieve that balance right."

The Treasury chief also confirmed she was collaborating with international partners "on our own critical minerals strategy, so that we are less reliant."

Health Service Medicine Costs and Funding

The Chancellor also admitted that the price the National Health Service spends on medicines could rise as a result of current discussions with the US government and its pharmaceutical firms, in return for reduced taxes and investment.

A number of the biggest global drug companies have said lately that they are either halting or canceling investments in the UK, with some attributing the modest returns they are receiving.

Recently, the government science advisor said the cost the NHS pays for drugs would have to go up to stop companies and pharmaceutical investment departing from the UK.

Reeves informed media: "It has been observed because of the cost structure, that clinical trials, recent pharmaceuticals have not been provided in the United Kingdom in the extent that they are in other continental states."

"We want to guarantee that people getting care from the National Health Service are can access the best critical treatments in the globe. And so we are looking at all of that, and... looking to attract increased investment into Britain."