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Treasury head Rachel Reeves has revealed she is planning "focused action to tackle cost of living issues" in next month's financial statement.

Speaking to the BBC, she emphasized that reducing inflation is a shared duty of both the administration and the Bank of England.

The United Kingdom's inflation rate is projected to be the highest among the G7 advanced economies this year and the following year.

Possible Utility Cost Measures

Reports indicate the administration could take action to lower energy bills, for example by slashing the current 5% rate of value-added tax applied on energy supplies.

A further option is to lower some of the policy costs currently added to bills.

Fiscal Limitations and Expert Predictions

The government will obtain the next assessment from the independent fiscal watchdog, the OBR, on the start of the week, which will reveal how much space there is for these actions.

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

Earlier on the same day, calculations indicated there was a £22bn gap for the chancellor to address, which is at the lower end of projections.

"There's a joint task between the central bank and the government to bear down further on some of the causes of inflation," the Chancellor told reporters in the US capital, at the annual meetings of the IMF and World Bank.

Revenue Commitments and International Concerns

While much of the attention has been on probable tax rises, the Treasury chief said the latest figures from the fiscal watchdog had not changed her pledge to election pledges not to increase rates on earnings tax, sales tax or National Insurance.

She attributed an "uncertain global environment" with growing international and commercial tensions for the fiscal revenue measures, likely to be focused on those "with the broadest shoulders."

Global Trade Disputes

Addressing apprehensions about the United Kingdom's commercial links with China she said: "Our national security invariably take priority."

Recent statement by China to tighten trade restrictions on critical minerals and other resources that are key for high-technology production led US President Donald Trump to suggest an additional 100% import tax on imports from China, increasing the risk of an full-scale trade war between the two economic giants.

The US Treasury Secretary labeled the Chinese decision "economic coercion" and "a global supply chain power grab."

Inquired about accepting the American proposal to join its conflict with the Asian nation, Reeves said she was "very concerned" by Chinese actions and encouraged the Beijing authorities "not to put up barriers and restrict access."

She said the decision was "damaging for the global economy and generates additional obstacles."

"I believe there are areas where we must confront Chinese policies, but there are also significant opportunities to sell into Chinese markets, including financial services and other areas of the economic system. We've got to get that equilibrium correct."

The chancellor also stated she was working with international partners "on our own critical minerals approach, so that we are less reliant."

Health Service Drug Pricing and Funding

Reeves also acknowledged that the price the NHS spends on medicines could go up as a consequence of current discussions with the Trump administration and its pharmaceutical firms, in exchange for reduced taxes and capital.

A number of the biggest global pharmaceutical manufacturers have said in recent statements that they are either pausing or abandoning operations in the UK, with some blaming the modest returns they are receiving.

Recently, the government science advisor said the price the health service pays for medicines would need to increase to stop companies and pharmaceutical investment departing from the UK.

Reeves stated to media: "We have seen due to the cost structure, that medical research, recent pharmaceuticals have not been available in the UK in the manner that they are in other European countries."

"The objective is to guarantee that patients receiving care from the National Health Service are can obtain the top critical drugs in the globe. And so we are reviewing this situation, and... looking to obtain additional investment into the UK."