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Chancellor Rachel Reeves has announced she is preparing "focused action to address cost of living issues" in the upcoming Budget.

Speaking to the BBC, she noted that lowering inflation is a joint responsibility of both the administration and the central bank.

The UK's price growth is projected to be the most elevated among the G7 developed nations this year and the following year.

Possible Energy Bill Measures

It is understood the government could take action to bring down energy bills, such as by reducing the current 5% level of VAT applied on energy.

Another possibility is to lower some of the government charges presently included in bills.

Fiscal Constraints and Expert Predictions

The administration will receive the latest assessment from the official forecaster, the Office for Budget Responsibility, on the start of the week, which will show how much scope there is for such measures.

The expectation from most economists is that Reeves will have to declare tax rises or spending cuts in order to fulfill her declared fiscal targets.

Previously on Thursday, calculations suggested there was a £22 billion deficit for the Treasury chief to address, which is at the more modest range of expectations.

"There's a joint job between the central bank and the government to continue tackling some of the causes of price increases," the Chancellor told the BBC in the US capital, at the annual meetings of the IMF and World Bank.

Tax Commitments and International Issues

While a great deal of the attention has been on expected tax rises, the chancellor said the most recent figures from the fiscal watchdog had not changed her pledge to election pledges not to increase tax levels on income tax, sales tax or National Insurance.

She attributed an "unpredictable global environment" with increasing geopolitical and commercial issues for the fiscal revenue measures, likely to be targeted on those "most able to pay."

International Trade Tensions

Commenting on apprehensions about the UK's commercial links with the Asian nation she said: "The UK's national security always take priority."

Recent statement by China to increase trade restrictions on rare earths and other materials that are essential for advanced tech manufacturing led US President the US President to propose an extra 100% import tax on goods from China, raising the risk of an all-out trade war between the two global powers.

The US Treasury Secretary called the Chinese move "commercial pressure" and "a international production power grab."

Questioned on considering the US offer to participate in its battle with the Asian nation, Reeves said she was "very concerned" by Chinese measures and encouraged the Chinese government "not to put up barriers and restrict access."

She said the move was "harmful for the international commerce and causes further headwinds."

"It is my opinion there are fields where we must confront Chinese policies, but there are also significant opportunities to sell into China's economy, including financial services and other sectors of the economic system. We've got to achieve that balance correct."

The chancellor also confirmed she was cooperating with international partners "on our own essential resources strategy, so that we are more independent."

NHS Medicine Costs and Funding

The Chancellor also admitted that the cost the National Health Service pays for medicines could increase as a result of ongoing negotiations with the Trump administration and its pharmaceutical firms, in return for lower tariffs and capital.

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

Last month, the government science advisor said the cost the health service pays for medicines would have to rise to prevent firms and drug research funding departing from the United Kingdom.

Reeves stated to the BBC: "We have seen because of the payment system, that drug testing, innovative medicines have not been available in the UK in the way that they are in other EU nations."

"We want to make sure that people getting treatment from the NHS are can obtain the finest essential drugs in the globe. And so we are examining all of that, and... looking to attract increased funding into the UK."