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

During an interview with the BBC, she emphasized that lowering price rises is a joint duty of both the government and the Bank of England.

The UK's inflation rate is expected to be the highest among the G7 developed nations this year and next.

Possible Energy Cost Measures

Reports indicate the government could take action to reduce utility costs, for example by reducing the present 5% rate of value-added tax charged on energy supplies.

A further approach is to reduce some of the regulatory levies currently added to bills.

Budgetary Constraints and Analyst 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 Reeves will have to announce tax rises or spending cuts in order to fulfill her voluntary borrowing rules.

Earlier on Thursday, analysis showed there was a £22 billion gap for the Treasury chief to fill, which is at the more modest range of projections.

"It is a collective responsibility between the Bank of England and the administration to continue tackling some of the causes of price increases," the Chancellor told the BBC in the US capital, at the yearly gatherings of the International Monetary Fund and global financial institution.

Tax Commitments and Global Issues

While a great deal of the focus has been on likely tax increases, the Treasury chief said the most recent figures from the OBR had not changed her vow to campaign commitments not to raise rates on income tax, sales tax or National Insurance.

She attributed an "uncertain global environment" with growing geopolitical and trade concerns for the fiscal tax moves, likely to be targeted on those "with the broadest shoulders."

International Trade Tensions

Addressing worries about the United Kingdom's economic relations with China she said: "Our national security invariably take priority."

Last week's statement by China to strengthen trade restrictions on rare earths and other resources that are key for high-technology production led American leader Donald Trump to propose an extra 100% import tax on imports from the Asian country, increasing the possibility of an full-scale commercial conflict between the two economic giants.

The American finance chief described the Chinese move "economic coercion" and "a global supply chain power grab."

Questioned on considering the American proposal to participate in its conflict with the Asian nation, Reeves said she was "extremely troubled" by China's actions and called on the Beijing authorities "to avoid restrictions and restrict access."

She said the move was "harmful for the global economy and causes additional challenges."

"In my view there are fields where we must challenge China, but there are also important chances to export to Chinese markets, including financial services and other sectors of the economy. We've got to get that balance right."

The Treasury chief also affirmed she was collaborating with G7 counterparts "regarding our own critical minerals plan, so that we are more independent."

NHS Drug Pricing and Investment

The Chancellor also admitted that the price the NHS pays for pharmaceuticals could go up as a consequence of ongoing negotiations with the Trump administration and its drugs companies, in return for reduced taxes and capital.

A number of the biggest global pharmaceutical manufacturers 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 Science Minister said the cost the health service pays for medicines would need to increase to halt firms and pharmaceutical investment departing from the United Kingdom.

Reeves informed the BBC: "It has been observed because of the payment system, that clinical trials, recent pharmaceuticals have not been available in the United Kingdom in the extent that they are in other EU nations."

"The objective is to guarantee that individuals getting care from the NHS are can receive the top life-saving treatments in the world. And so we are looking at this situation, and... seeking to attract more funding into Britain."