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Treasury head Rachel Reeves has stated she is preparing "specific action to tackle cost of living challenges" in next month's financial statement.

Speaking to the BBC, she stated that reducing inflation is a collective task of both the administration and the Bank of England.

The United Kingdom's inflation rate is forecast to be the most elevated among the G7 advanced economies this year and next.

Potential Utility Bill Measures

Reports indicate the administration could intervene to bring down energy bills, for instance by reducing the present 5% level of value-added tax charged on energy.

A further approach is to cut some of the policy costs currently included in household expenses.

Fiscal Constraints and Expert Predictions

The government will obtain the latest draft from the independent fiscal watchdog, the OBR, on Monday, which will reveal how much room there is for these measures.

The view from most economists is that the Chancellor will have to declare tax rises or spending cuts in order to fulfill her self-imposed fiscal targets.

Earlier on Thursday, calculations showed there was a £22 billion gap for the chancellor to fill, which is at the more modest range of expectations.

"It is a collective responsibility between the Bank of England and the administration to bear down further on some of the sources of price increases," the Chancellor told the BBC in the US capital, at the conferences of the International Monetary Fund and global financial institution.

Revenue Pledges and Global Issues

While much of the focus has been on expected tax rises, the chancellor said the latest data from the fiscal watchdog had not altered her pledge to election pledges not to increase tax levels on earnings tax, VAT or social security contributions.

She attributed an "unpredictable world" with increasing international and trade issues for the fiscal revenue measures, probably to be targeted on those "most able to pay."

International Economic Disputes

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

Last week's statement by China to increase trade restrictions on rare earths and other resources that are essential for high-technology production led US President the US President to threaten an further 100% tariff on imports from the Asian country, increasing the prospect of an all-out trade war between the two global powers.

The American finance chief described the Chinese decision "economic coercion" and "a global supply chain control attempt."

Inquired about accepting the US offer to participate in its dispute with China, the Chancellor said she was "deeply worried" by China's measures and called on the Beijing authorities "not to put up barriers and limit trade."

She said the move was "bad for the global economy and causes additional headwinds."

"It is my opinion there are areas where we need to address Chinese policies, but there are also valuable opportunities to sell into Chinese markets, including banking sector and other sectors of the economy. We've got to achieve that equilibrium correct."

The Treasury chief also stated she was cooperating with other major economies "regarding our own critical minerals approach, so that we are less reliant."

NHS Drug Pricing and Investment

Reeves also admitted that the price the National Health Service spends on medicines could increase as a consequence of ongoing talks with the Trump administration and its drugs companies, in return for lower tariffs and capital.

Some of the biggest global drug companies have said in recent statements that they are either halting or abandoning operations in the UK, with several blaming the insufficient payments they are receiving.

Recently, the Science Minister said the price the NHS pays for medicines would need to increase to halt firms and pharmaceutical investment leaving the UK.

Reeves informed the BBC: "It has been observed due to the payment system, that medical research, new drugs have not been available in the UK in the manner that they are in other continental states."

"Our aim is to make sure that individuals receiving care from the National Health Service are can receive the finest critical medicines in the world. And so we are looking at these issues, and... looking to secure increased funding into Britain."