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Treasury head Rachel Reeves has revealed she is preparing "targeted steps to tackle cost of living pressures" in next month's financial statement.

In comments to the BBC, she emphasized that reducing price rises is a joint duty of both the administration and the central bank.

The UK's price growth is expected to be the most elevated among the Group of Seven industrialized countries this year and next.

Possible Energy Cost Interventions

Sources suggest the government could take action to bring down utility costs, such as by cutting the present 5% rate of value-added tax applied on energy supplies.

A further option is to lower some of the policy costs presently included in bills.

Fiscal Constraints and Expert Expectations

The administration will obtain the next report from the official forecaster, the OBR, on Monday, which will clarify how much room there is for such measures.

The view from most analysts is that the Chancellor will have to declare tax rises or spending cuts in order to adhere to her voluntary borrowing rules.

Earlier on the same day, calculations showed there was a twenty-two billion pound shortfall for the chancellor to fill, which is at the more modest range of forecasts.

"It is a joint job between the central bank and the government to bear down further on some of the causes of inflation," Reeves stated to the BBC in the US capital, at the conferences of the International Monetary Fund and global financial institution.

Tax Pledges and International Issues

While much of the attention has been on expected tax rises, the Treasury chief said the latest information from the fiscal watchdog had not changed her commitment to campaign commitments not to raise tax levels on income tax, sales tax or social security contributions.

She blamed an "uncertain world" with rising geopolitical and commercial issues for the fiscal revenue measures, likely to be directed on those "wealthiest."

Global Economic Disputes

Commenting on concerns about the United Kingdom's trade ties with the Asian nation she said: "The UK's national security invariably are paramount."

Last week's declaration by China to increase export controls on critical minerals and other resources that are key for advanced tech manufacturing led American leader Donald Trump to threaten an further 100% import tax on goods from the Asian country, increasing the possibility of an all-out trade war between the two global powers.

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

Asked about accepting the US offer to participate in its dispute with the Asian nation, Reeves said she was "extremely troubled" by Chinese actions and called on the Beijing authorities "to avoid restrictions and limit trade."

She said the decision was "harmful for the international commerce and causes additional headwinds."

"It is my opinion there are fields where we need to challenge China, but there are also significant chances to export to China's economy, including banking sector and other areas of the economic system. We've got to achieve that equilibrium appropriate."

The Treasury chief also affirmed she was cooperating with international partners "on our own essential resources strategy, so that we are reduced dependence."

NHS Drug Costs and Investment

Reeves also acknowledged that the cost the NHS pays for pharmaceuticals could go up as a result of ongoing negotiations with the US government and its pharmaceutical firms, in return for lower tariffs and investment.

Some of the biggest global drug companies have said recently that they are either pausing or canceling operations in the UK, with several attributing the modest returns they are receiving.

Recently, the government science advisor said the cost the NHS pays for medicines would have to increase to prevent companies and drug research funding leaving the United Kingdom.

The Chancellor stated to the BBC: "It has been observed due to the cost structure, that medical research, new drugs have not been offered in the United Kingdom in the extent that they are in other European countries."

"We want to make sure that individuals receiving care from the NHS are can access the finest critical treatments in the world. And so we are looking at this situation, and... seeking to secure increased capital into the UK."