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Chancellor Rachel Reeves has announced she is preparing "targeted steps to tackle cost of living challenges" in next month's Budget.

In comments to media outlets, she stated that lowering inflation is a joint responsibility of both the government and the central bank.

The UK's inflation rate is expected to be the highest among the Group of Seven developed nations this year and the following year.

Possible Utility Bill Measures

Reports indicate the administration could take action to reduce energy bills, for instance by slashing the present 5% level of VAT applied on energy supplies.

Another approach is to lower some of the policy costs presently included in household expenses.

Budgetary Limitations and Expert Expectations

The administration will receive the latest draft from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will reveal how much scope there is for such actions.

The consensus from most experts is that the Chancellor will have to announce tax rises or expenditure reductions in order to fulfill her declared borrowing rules.

Previously on Thursday, analysis showed there was a £22bn gap for the Treasury chief to fill, which is at the more modest range of forecasts.

"There's a shared responsibility between the central bank and the administration to continue tackling some of the drivers of inflation," the Chancellor stated to reporters in Washington, at the conferences of the IMF and World Bank.

Revenue Commitments and Global Issues

While much of the attention has been on probable tax rises, the chancellor said the most recent figures from the OBR had not changed her pledge to election pledges not to raise tax levels on earnings tax, sales tax or social security contributions.

She blamed an "unpredictable world" with rising international and commercial concerns for the fiscal revenue measures, likely to be directed on those "most able to pay."

Global Economic Disputes

Referring to concerns about the United Kingdom's commercial links with the Asian nation she said: "Our security interests always come first."

Recent declaration by Chinese authorities to tighten trade restrictions on critical minerals and other resources that are essential for high-technology production led American leader Donald Trump to propose an additional 100% import tax on goods from China, increasing the prospect of an full-scale trade war between the two economic giants.

The US Treasury Secretary described China's decision "commercial pressure" and "a global supply chain control attempt."

Inquired about accepting the American proposal to participate in its dispute with the Asian nation, Reeves said she was "extremely troubled" by China's actions and urged the Chinese government "to avoid restrictions and limit trade."

She said the decision was "damaging for the international commerce and generates further challenges."

"It is my opinion there are sectors where we must confront China, but there are also significant prospects 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 collaborating with international partners "on our own essential resources strategy, so that we are less reliant."

NHS Medicine Costs and Investment

Reeves also acknowledged that the cost the NHS pays for medicines could rise as a consequence of ongoing talks with the Trump administration and its drugs companies, in exchange for reduced taxes and capital.

A number of the world's largest pharmaceutical manufacturers have said in recent statements that they are either pausing or canceling projects in the UK, with several blaming the insufficient payments they are obtaining.

Last month, the government science advisor said the price the health service pays for medicines would need to rise to stop businesses and pharmaceutical investment departing from the UK.

Reeves told the BBC: "It has been observed due to the payment system, that drug testing, innovative medicines have not been available in the UK in the extent that they are in other European countries."

"Our aim is to guarantee that people getting care from the NHS are able to obtain the finest life-saving drugs in the world. And so we are reviewing these issues, and... seeking to obtain increased funding into the UK."