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Chancellor Rachel Reeves has announced she is preparing "targeted measures to deal with cost of living pressures" in the upcoming financial statement.

In comments to the BBC, she stated that curbing inflation is a shared duty of both the government and the central bank.

The UK's price growth is forecast to be the most elevated among the G7 industrialized countries this year and the following year.

Potential Utility Bill Measures

Sources suggest the administration could take action to bring down energy bills, for example by slashing the current 5% rate of value-added tax charged on energy.

A further option is to lower some of the regulatory levies presently included in bills.

Budgetary Limitations and Analyst Expectations

The government will obtain the next draft from the official forecaster, the Office for Budget Responsibility, on Monday, which will clarify how much scope there is for such measures.

The view from the majority of experts is that Reeves will have to introduce tax rises or expenditure reductions in order to adhere to her declared debt limits.

Earlier on Thursday, analysis indicated there was a £22 billion shortfall for the chancellor to address, which is at the more modest range of projections.

"It is a joint job between the Bank of England and the administration to further reduce some of the sources of inflation," Reeves stated to the BBC in Washington, at the conferences of the IMF and World Bank.

Tax Pledges and Global Issues

While much of the focus has been on probable tax increases, the chancellor said the most recent data from the OBR had not changed her pledge to campaign commitments not to increase tax levels on earnings tax, sales tax or National Insurance.

She attributed an "uncertain world" with increasing international and commercial issues for the fiscal revenue measures, probably to be focused on those "with the broadest shoulders."

Global Trade Tensions

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

Recent announcement by China to strengthen export controls on critical minerals and other resources that are key for advanced tech production led American leader Donald Trump to suggest an further 100% tariff on goods from China, raising the possibility of an all-out commercial conflict between the two global powers.

The US Treasury Secretary called China's decision "commercial pressure" and "a global supply chain power grab."

Questioned on considering the US offer to participate in its battle with China, Reeves said she was "very concerned" by Chinese actions and encouraged the Beijing authorities "to avoid restrictions and restrict access."

She said the action was "bad for the global economy and creates additional challenges."

"It is my opinion there are fields where we should challenge China, but there are also significant chances to trade with Chinese markets, including banking sector and other areas of the economy. We've got to maintain that equilibrium correct."

The Treasury chief also stated she was working with other major economies "on our own critical minerals approach, so that we are less reliant."

NHS Medicine Pricing and Investment

The Chancellor also acknowledged that the price the NHS pays for drugs could go up as a result of current talks with the Trump administration and its drugs companies, in return for lower tariffs and funding.

Some of the world's largest pharmaceutical manufacturers have said recently that they are either delaying or scrapping investments in the UK, with several blaming the modest returns they are getting.

Last month, the Science Minister said the price the NHS pays for drugs would have to go up to stop companies and pharmaceutical investment leaving the UK.

The Chancellor told the BBC: "It has been observed due to the pricing regime, that medical research, innovative medicines have not been provided in the United Kingdom in the way that they are in other European countries."

"We want to make sure that individuals getting treatment from the NHS are can obtain the best life-saving treatments in the world. And so we are looking at these issues, and... aiming to secure additional capital into the UK."