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Chancellor Rachel Reeves has stated she is planning "targeted steps to deal with cost of living issues" in the forthcoming financial statement.

During an interview with the BBC, she noted that curbing inflation is a joint duty of both the government and the Bank of England.

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

Potential Energy Bill Interventions

It is understood the government could take action to bring down utility costs, such as by cutting the present 5% level of value-added tax applied on energy.

A further option is to lower some of the policy costs presently included in bills.

Fiscal Constraints and Analyst Expectations

The administration will obtain the next draft from the official forecaster, the OBR, on the start of the week, which will show how much space there is for such measures.

The consensus from the majority of analysts is that the Chancellor will have to announce higher taxes or spending cuts in order to meet her self-imposed debt limits.

Earlier on the same day, estimates suggested there was a £22 billion deficit for the chancellor to resolve, which is at the more modest range of forecasts.

"There's a shared responsibility between the Bank of England and the administration to further reduce some of the drivers of inflation," Reeves stated to the BBC in the US capital, at the annual meetings of the International Monetary Fund and global financial institution.

Tax Commitments and Global Issues

While much of the attention has been on probable tax rises, the Treasury chief said the latest information from the fiscal watchdog had not changed her pledge to campaign commitments not to raise tax levels on earnings tax, VAT or social security contributions.

She attributed an "uncertain world" with growing international and commercial issues for the Budget tax moves, probably to be directed on those "most able to pay."

Global Trade Tensions

Commenting on concerns about the United Kingdom's economic relations with China she said: "The UK's national security always come first."

Last week's statement by China to tighten trade restrictions on rare earths and other resources that are essential for advanced tech manufacturing led US President the US President to suggest an extra 100% import tax on goods from China, increasing the possibility of an full-scale commercial conflict between the two largest economies.

The American finance chief described China's move "commercial pressure" and "a international production power grab."

Asked about considering the American proposal to participate in its battle with China, Reeves said she was "very concerned" by China's measures and encouraged the Beijing authorities "to avoid restrictions and limit trade."

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

"I believe there are fields where we should address Chinese policies, but there are also significant opportunities to trade with Chinese markets, including banking sector and other sectors of the economy. We've got to get that balance right."

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

Health Service Medicine Pricing and Funding

Reeves also admitted that the price the NHS spends on medicines could rise as a result of ongoing discussions with the US government and its pharmaceutical firms, in return for lower tariffs and capital.

A number of the biggest global drug companies have said recently that they are either pausing or abandoning projects in the United Kingdom, with several attributing the modest returns they are obtaining.

Last month, the government science advisor said the cost the NHS pays for medicines would need to increase to prevent firms and drug research funding leaving the United Kingdom.

Reeves stated to media: "We have seen because of the pricing regime, that clinical trials, innovative medicines have not been available in the UK in the extent that they are in other continental states."

"Our aim is to ensure that individuals getting treatment from the NHS are can obtain the top critical medicines in the world. And so we are reviewing this situation, and... seeking to obtain additional funding into Britain."