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Chancellor Rachel Reeves has announced she is preparing "focused action to tackle cost of living pressures" in next month's financial statement.

Speaking to the BBC, she stated that curbing price rises is a collective duty of both the administration and the Bank of England.

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

Potential Utility Bill Measures

It is understood the administration could take action to reduce energy bills, such as by slashing the present 5% rate of value-added tax applied on energy supplies.

An additional possibility is to cut some of the government charges presently included in bills.

Fiscal Constraints and Analyst Expectations

The administration will receive the next assessment from the official forecaster, the Office for Budget Responsibility, on the start of the week, which will reveal how much space there is for these actions.

The consensus from most experts is that the Chancellor will have to declare tax increases or budget cuts in order to adhere to her self-imposed borrowing rules.

Earlier on Thursday, estimates indicated there was a twenty-two billion pound deficit for the chancellor to resolve, which is at the lower end of projections.

"There's a joint job between the central bank and the administration to bear down further on some of the causes of inflation," the Chancellor stated to reporters in Washington, at the yearly gatherings of the International Monetary Fund and global financial institution.

Revenue Pledges and Global 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 election pledges not to increase rates on income tax, VAT or National Insurance.

She blamed an "unpredictable global environment" with rising geopolitical and trade tensions for the Budget tax moves, probably to be targeted on those "with the broadest shoulders."

Global Trade Disputes

Commenting on concerns about the UK's trade ties with China she said: "The UK's national security invariably come first."

Recent announcement by China to increase trade restrictions on rare earths and other materials that are crucial for advanced tech manufacturing led American leader Donald Trump to propose an additional 100% import tax on imports from the Asian country, increasing the risk of an full-scale trade war between the two global powers.

The US Treasury Secretary described China's action "commercial pressure" and "a international production control attempt."

Questioned on considering the American proposal to participate in its conflict with the Asian nation, Reeves said she was "deeply worried" by Chinese actions and called on the Beijing authorities "to avoid restrictions and restrict access."

She said the decision was "harmful for the global economy and causes additional obstacles."

"It is my opinion there are sectors where we need to challenge Chinese policies, but there are also significant chances to sell into Chinese markets, including financial services and other areas of the economy. We've got to achieve that equilibrium right."

The chancellor also stated she was working with other major economies "regarding our own essential resources strategy, so that we are less reliant."

Health Service Medicine Costs and Funding

The Chancellor also admitted that the price the National Health Service pays for pharmaceuticals could rise as a consequence of current negotiations with the Trump administration and its drugs companies, in exchange for lower tariffs and capital.

Some of the biggest global pharmaceutical manufacturers have said lately that they are either delaying or abandoning projects in the UK, with several attributing the modest returns they are receiving.

Last month, the Science Minister said the cost the health service spends on medicines would need to increase to stop businesses and drug research funding departing from the United Kingdom.

Reeves informed media: "It has been observed due to the cost structure, that medical research, new drugs have not been available in the United Kingdom in the manner that they are in other continental states."

"We want to make sure that people getting care from the National Health Service are able to obtain the finest critical medicines in the world. And so we are looking at these issues, and... looking to attract more investment into the UK."