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Treasury head Rachel Reeves has revealed she is preparing "focused action to address cost of living challenges" in next month's financial statement.

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

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

Possible Utility Bill Interventions

Reports indicate the government could intervene to bring down energy bills, such as by cutting the present 5% rate of value-added tax applied on energy supplies.

A further possibility is to reduce some of the government charges presently added to bills.

Budgetary Limitations and Analyst Predictions

The government will obtain the latest draft from the official forecaster, the Office for Budget Responsibility, on Monday, which will show how much room there is for such measures.

The expectation from the majority of economists is that the Chancellor will have to announce tax rises or budget cuts in order to fulfill her self-imposed fiscal targets.

Previously on Thursday, estimates indicated there was a £22 billion gap for the chancellor to address, which is at the more modest range of expectations.

"It is a collective job between the Bank of England and the government to further reduce some of the drivers of inflation," the Chancellor told the BBC in Washington, at the yearly gatherings of the IMF and global financial institution.

Revenue Commitments and Global Concerns

While a great deal of the focus has been on probable tax increases, the chancellor said the most recent figures from the OBR had not changed her pledge to manifesto promises not to increase rates on income tax, VAT or National Insurance.

She blamed an "uncertain global environment" with rising geopolitical and trade concerns for the fiscal revenue measures, likely to be focused on those "most able to pay."

International Economic Tensions

Addressing apprehensions about the United Kingdom's trade ties with China she said: "The UK's national security invariably are paramount."

Recent declaration by Chinese authorities to increase trade restrictions on critical minerals and other materials that are key for high-technology manufacturing led American leader the US President to threaten an extra 100% import tax on goods from China, raising the possibility of an full-scale commercial conflict between the two global powers.

The American finance chief called China's move "economic coercion" and "a global supply chain power grab."

Asked about considering the US offer to join its conflict with the Asian nation, Reeves said she was "extremely troubled" by China's actions and called on the Beijing authorities "not to put up barriers and restrict access."

She said the action was "bad for the international commerce and causes further obstacles."

"In my view there are fields where we should confront Chinese policies, but there are also important prospects to export to China's economy, including financial services and other areas of the economy. We've got to get that equilibrium right."

The Treasury chief also confirmed she was collaborating with international partners "regarding our own essential resources approach, so that we are less reliant."

Health Service Medicine Costs and Investment

Reeves also recognized that the price the National Health Service spends on drugs could increase as a consequence of ongoing talks with the Trump administration and its drugs companies, in exchange for reduced taxes and funding.

A number of the world's largest drug companies have said lately that they are either delaying or canceling projects in the United Kingdom, with several attributing the low prices they are receiving.

Last month, the Science Minister said the cost the health service pays for medicines would must go up to stop businesses and drug research funding leaving the UK.

The Chancellor informed media: "It has been observed because of the pricing regime, that medical research, recent pharmaceuticals have not been offered in the UK in the manner that they are in other EU nations."

"Our aim is to make sure that patients getting care from the National Health Service are can receive the best critical treatments in the globe. And so we are examining this situation, and... seeking to secure more funding into Britain."