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Chancellor Rachel Reeves has stated she is preparing "focused steps to address cost of living challenges" in next month's financial statement.

Speaking to the BBC, she emphasized that reducing price rises is a joint task of both the government and the central bank.

The United Kingdom's price growth is forecast to be the most elevated among the G7 advanced economies this calendar year and the following year.

Potential Utility Cost Measures

Reports indicate the administration could intervene to bring down energy bills, for instance by cutting the current 5% level of value-added tax charged on energy supplies.

A further option is to reduce some of the regulatory levies currently included in bills.

Budgetary Constraints and Analyst Expectations

The government will receive the latest draft from the independent fiscal watchdog, the OBR, on Monday, which will clarify how much space there is for such measures.

The view from most economists is that the Chancellor will have to introduce higher taxes or expenditure reductions in order to fulfill her declared fiscal targets.

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

"It is a joint task between the central bank and the government to bear down further on some of the drivers of price increases," Reeves stated to reporters in Washington, at the annual meetings of the International Monetary Fund and World Bank.

Tax Commitments and International Concerns

While a great deal of the focus has been on expected tax increases, the Treasury chief said the latest information from the OBR had not changed her pledge to manifesto promises not to increase tax levels on earnings tax, sales tax or social security contributions.

She blamed an "uncertain world" with rising international and commercial tensions for the Budget tax moves, likely to be directed on those "wealthiest."

Global Economic Disputes

Referring to concerns about the UK's trade ties with China she said: "Our national security invariably come first."

Last week's statement by China to tighten export controls on rare earths and other resources that are essential for high-technology manufacturing led American leader the US President to propose an further 100% tariff on goods from China, increasing the possibility of an all-out trade war between the two largest economies.

The US Treasury Secretary described the Chinese decision "commercial pressure" and "a international production power grab."

Inquired about considering the US offer to join its conflict with China, the Chancellor said she was "deeply worried" by China's measures and encouraged the Beijing authorities "not to put up barriers and limit trade."

She said the decision was "harmful for the international commerce and causes additional obstacles."

"In my view there are sectors where we must challenge Chinese policies, but there are also valuable opportunities to trade with China's economy, including banking sector and other areas of the economic system. We've got to maintain that equilibrium correct."

The chancellor also stated she was working with other major economies "regarding our own essential resources plan, so that we are reduced dependence."

NHS Medicine Costs and Investment

The Chancellor also acknowledged that the cost the National Health Service pays for drugs could increase as a result of current discussions with the Trump administration and its pharmaceutical firms, in return for reduced taxes and investment.

Some of the world's largest pharmaceutical manufacturers have said lately that they are either delaying or canceling projects in the UK, with some blaming the modest returns they are obtaining.

Last month, the Science Minister said the price the NHS spends on drugs would have to go up to halt businesses and drug research funding leaving the UK.

The Chancellor informed the BBC: "It has been observed as a result of the pricing regime, that drug testing, innovative medicines have not been available in the UK in the extent that they are in other continental states."

"The objective is to ensure that individuals getting care from the National Health Service are able to receive the top life-saving medicines in the world. And so we are reviewing this situation, and... seeking to secure more investment into Britain."