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Treasury head Rachel Reeves has announced she is preparing "specific action to tackle cost of living challenges" in the upcoming financial statement.

During an interview with media outlets, she stated that reducing price rises is a joint duty of both the administration and the central bank.

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

Possible Utility Cost Measures

It is understood the government could take action to reduce energy bills, for example by cutting the present 5% level of VAT charged on energy supplies.

A further approach is to cut some of the government charges presently included in bills.

Fiscal Constraints and Expert Expectations

The government will receive the next assessment from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will show how much space there is for these measures.

The view from most economists is that the Chancellor will have to introduce higher taxes or budget cuts in order to meet her voluntary debt limits.

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

"There's a collective responsibility between the Bank of England and the administration to continue tackling some of the sources of inflation," the Chancellor stated to reporters in the US capital, at the conferences of the IMF and global financial institution.

Revenue Commitments and International Concerns

While a great deal of the focus has been on expected tax rises, the chancellor said the latest figures from the OBR had not changed her vow to election pledges not to raise tax levels on income tax, sales tax or National Insurance.

She attributed an "uncertain world" with growing geopolitical and commercial tensions for the fiscal revenue measures, likely to be directed on those "with the broadest shoulders."

Global Economic Tensions

Commenting on apprehensions about the United Kingdom's commercial links with the Asian nation she said: "The UK's security interests always are paramount."

Recent statement by China to strengthen export controls on critical minerals and other materials that are essential for high-technology manufacturing led US President Donald Trump to suggest an further 100% import tax on imports from the Asian country, raising the risk of an all-out commercial conflict between the two largest economies.

The American finance chief called China's action "commercial pressure" and "a international production power grab."

Inquired about accepting the American proposal to join its conflict with China, Reeves said she was "deeply worried" by China's measures and encouraged the Beijing authorities "to avoid restrictions and limit trade."

She said the decision was "damaging for the international commerce and causes further headwinds."

"In my view there are fields where we need to confront China, but there are also significant chances to sell into China's economy, including financial services and other areas of the economy. We've got to get that equilibrium correct."

The chancellor also stated she was working with international partners "on our own essential resources approach, so that we are more independent."

NHS Drug Costs and Funding

The Chancellor also acknowledged that the price the NHS pays for drugs could go up as a consequence of current discussions with the US government and its pharmaceutical firms, in exchange for reduced taxes and investment.

Some of the biggest global drug companies have said recently that they are either delaying or canceling projects in the United Kingdom, with some blaming the low prices they are obtaining.

Last month, the government science advisor said the cost the health service spends on drugs would must go up to prevent companies and drug research funding departing from the United Kingdom.

Reeves stated to media: "It has been observed as a result of the cost structure, that medical research, recent pharmaceuticals have not been available in the UK in the manner that they are in other EU nations."

"We want to make sure that patients getting treatment from the National Health Service are able to obtain the best critical treatments in the world. And so we are looking at these issues, and... seeking to attract additional capital into Britain."