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Chancellor Rachel Reeves has revealed she is planning "specific steps to deal with cost of living issues" in the upcoming financial statement.

In comments to the BBC, she emphasized that reducing price rises is a shared duty of both the government and the Bank of England.

The United Kingdom's inflation rate is projected to be the most elevated among the Group of Seven developed nations this year and next.

Possible Energy Cost Measures

Sources suggest the government could intervene to reduce utility costs, for instance by slashing the current 5% rate of value-added tax charged on energy.

An additional possibility is to lower some of the policy costs currently added to bills.

Budgetary Limitations and Analyst Predictions

The administration will receive the latest report from the independent fiscal watchdog, the OBR, on Monday, which will show how much scope there is for such actions.

The view from most economists is that Reeves will have to declare tax rises or spending cuts in order to fulfill her declared debt limits.

Earlier on the same day, estimates suggested there was a £22 billion gap for the chancellor to address, which is at the lower end of expectations.

"There's a shared task between the central bank and the government to further reduce some of the causes of price increases," Reeves told reporters in Washington, at the conferences of the IMF and global financial institution.

Tax Commitments and International Concerns

While a great deal of the focus has been on likely tax increases, the chancellor said the most recent data from the fiscal watchdog had not altered her vow to election pledges not to increase rates on earnings tax, sales tax or National Insurance.

She attributed an "unpredictable global environment" with increasing international and trade concerns for the fiscal tax moves, likely to be focused on those "wealthiest."

Global Economic Disputes

Referring to worries about the UK's trade ties with China she said: "The UK's national security always come first."

Recent announcement by Chinese authorities to tighten export controls on rare earths and other resources that are essential for high-technology manufacturing led American leader the US President to threaten an further 100% import tax on goods from the Asian country, raising the prospect of an full-scale trade war between the two economic giants.

The American finance chief called the Chinese decision "economic coercion" and "a international production control attempt."

Questioned on considering the American proposal to participate in its dispute with the Asian nation, the Chancellor said she was "deeply worried" by China's actions and called on the Beijing authorities "not to put up barriers and limit trade."

She said the action was "harmful for the international commerce and causes further headwinds."

"In my view there are sectors where we must challenge Chinese policies, but there are also important prospects to trade with Chinese markets, including financial services and other sectors of the economy. We've got to get that equilibrium appropriate."

The Treasury chief also confirmed she was cooperating with G7 counterparts "regarding our own critical minerals approach, so that we are reduced dependence."

NHS Medicine Pricing and Investment

Reeves also recognized that the price the National Health Service pays for pharmaceuticals could rise as a result of current discussions with the US government and its pharmaceutical firms, in return for lower tariffs and capital.

A number of the world's largest drug companies have said lately that they are either pausing or scrapping operations in the United Kingdom, with some blaming the low prices they are obtaining.

Last month, the Science Minister said the cost the health service pays for medicines would need to increase to stop businesses and drug research funding departing from the UK.

The Chancellor informed media: "It has been observed due to the payment system, that drug testing, new drugs have not been offered in the UK in the way that they are in other EU nations."

"Our aim is to guarantee that people getting care from the NHS are able to access the best critical drugs in the globe. And so we are reviewing these issues, and... aiming to attract more investment into Britain."