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Chancellor Rachel Reeves has stated she is planning "specific measures to tackle cost of living pressures" in the upcoming Budget.

In comments to the BBC, she stated that curbing inflation is a joint task of both the government and the Bank of England.

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

Potential Utility Cost Interventions

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

Another possibility is to cut some of the policy costs presently included in bills.

Fiscal Limitations and Expert Predictions

The government will obtain the next report from the independent fiscal watchdog, the OBR, on the start of the week, which will reveal how much scope there is for such measures.

The expectation from the majority of experts is that the Chancellor will have to introduce tax increases or budget cuts in order to meet her voluntary debt limits.

Earlier on the same day, estimates showed there was a £22bn deficit for the chancellor to address, which is at the lower end of forecasts.

"There's a collective responsibility between the central bank and the administration to continue tackling some of the drivers of inflation," the Chancellor stated to the BBC in the US capital, at the yearly gatherings of the IMF and World Bank.

Tax Commitments and International Issues

While much of the focus has been on expected tax rises, the chancellor said the latest information from the OBR had not altered her pledge to manifesto promises not to raise rates on income tax, VAT or National Insurance.

She attributed an "unpredictable global environment" with increasing geopolitical and trade issues for the Budget revenue measures, probably to be targeted on those "with the broadest shoulders."

Global Economic Tensions

Addressing concerns about the United Kingdom's economic relations with the Asian nation she said: "Our security interests invariably take priority."

Last week's declaration by Chinese authorities to increase trade restrictions on critical minerals and other materials that are key for high-technology manufacturing led American leader the US President to suggest an additional 100% import tax on imports from the Asian country, raising the possibility of an full-scale commercial conflict between the two economic giants.

The American finance chief described the Chinese move "commercial pressure" and "a global supply chain power grab."

Inquired about considering the US offer to participate in its battle with the Asian nation, Reeves said she was "deeply worried" by China's actions and called on the Chinese government "to avoid restrictions and restrict access."

She said the decision was "damaging for the world economy and generates additional challenges."

"I believe there are areas where we should challenge China, but there are also valuable opportunities to export to China's economy, including banking sector and other areas of the economic system. We've got to get that equilibrium correct."

The chancellor also affirmed she was working with G7 counterparts "on our own critical minerals plan, so that we are more independent."

Health Service Drug Pricing and Investment

The Chancellor also admitted that the price the National Health Service spends on pharmaceuticals could increase as a result of ongoing talks with the US government and its drugs companies, in return for reduced taxes and capital.

A number of the world's largest drug companies have said lately that they are either delaying or abandoning operations in the United Kingdom, with several blaming the insufficient payments they are receiving.

Recently, the government science advisor said the price the NHS spends on medicines would have to rise to prevent companies and drug research funding leaving the United Kingdom.

The Chancellor informed media: "We have seen as a result of the cost structure, that medical research, recent pharmaceuticals have not been offered in the United Kingdom in the extent that they are in other European countries."

"The objective is to ensure that people receiving care from the NHS are able to obtain the top critical medicines in the globe. And so we are looking at all of that, and... looking to attract more capital into the UK."