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Chancellor Rachel Reeves has revealed she is planning "specific measures to address cost of living issues" in the forthcoming Budget.

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

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

Potential Utility Cost Interventions

Sources suggest the government could intervene to bring down energy bills, for instance by slashing the present 5% level of value-added tax applied on energy.

A further option is to cut some of the government charges currently included in bills.

Fiscal Constraints and Expert Expectations

The government will receive the next assessment from the independent fiscal watchdog, the OBR, on Monday, which will reveal how much room there is for these measures.

The view from the majority of economists is that Reeves will have to introduce higher taxes or budget cuts in order to adhere to her declared debt limits.

Previously on Thursday, estimates showed there was a £22bn deficit for the chancellor to fill, which is at the more modest range of forecasts.

"It is a collective task between the central bank and the government to continue tackling some of the causes of inflation," Reeves informed reporters in the US capital, at the yearly gatherings of the IMF and global financial institution.

Revenue Pledges and Global Concerns

While a great deal of the focus has been on expected tax rises, the Treasury chief said the latest figures from the OBR had not changed her commitment to campaign commitments not to increase rates on earnings tax, VAT or social security contributions.

She attributed an "uncertain global environment" with growing geopolitical and commercial tensions for the fiscal revenue measures, probably to be directed on those "most able to pay."

International Trade Tensions

Commenting on apprehensions about the United Kingdom's commercial links with the Asian nation she said: "Our national security invariably come first."

Last week's statement by China to increase export controls on critical minerals and other resources that are crucial for high-technology manufacturing led US President the US President to propose an extra 100% import tax on goods from the Asian country, increasing the possibility of an all-out commercial conflict between the two economic giants.

The American finance chief called China's move "commercial pressure" and "a global supply chain 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 measures and encouraged the Chinese government "to avoid restrictions and limit trade."

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

"I believe there are fields where we should confront China, but there are also valuable chances to export to China's economy, including banking sector and other sectors of the economy. We've got to get that balance appropriate."

The chancellor also stated she was cooperating with G7 counterparts "on our own critical minerals approach, so that we are less reliant."

Health Service Drug Costs and Funding

The Chancellor also admitted that the cost the NHS pays for drugs could go up as a consequence of current negotiations with the Trump administration and its pharmaceutical firms, in return for reduced taxes and capital.

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

Last month, the Science Minister said the cost the NHS pays for medicines would have to increase to stop companies and drug research funding leaving the UK.

The Chancellor informed media: "It has been observed because of the payment system, that clinical trials, new drugs have not been provided in the UK in the extent that they are in other continental states."

"Our aim is to guarantee that patients getting care from the National Health Service are able to receive the top life-saving treatments in the globe. And so we are examining these issues, and... seeking to attract additional funding into Britain."