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Treasury head Rachel Reeves has stated she is preparing "focused action to tackle cost of living issues" in the forthcoming financial statement.

In comments to the BBC, she stated that reducing price rises is a shared duty of both the government and the central bank.

The United Kingdom's inflation rate is forecast to be the most elevated among the G7 developed nations this calendar year and the following year.

Potential Energy Bill Measures

Reports indicate the government could take action to bring down utility costs, such as by slashing the current 5% level of value-added tax applied on energy supplies.

An additional possibility is to cut some of the policy costs currently added to household expenses.

Fiscal Constraints and Analyst Predictions

The administration will obtain the next report from the independent fiscal watchdog, the Office for Budget Responsibility, on the start of the week, which will clarify how much room there is for these measures.

The expectation from most economists is that the Chancellor will have to declare tax increases or expenditure reductions in order to meet her declared fiscal targets.

Previously on the same day, analysis suggested there was a £22 billion gap for the chancellor to address, which is at the lower end of expectations.

"There's a shared responsibility between the central bank and the administration to further reduce some of the causes of inflation," Reeves informed the BBC in the US capital, at the conferences of the International Monetary Fund and World Bank.

Revenue Commitments and Global Issues

While much of the focus has been on expected tax increases, the Treasury chief said the most recent figures from the OBR had not changed her pledge to campaign commitments not to increase rates on income tax, VAT or National Insurance.

She blamed an "uncertain world" with rising international and trade tensions for the Budget tax moves, likely to be targeted on those "with the broadest shoulders."

Global Trade Tensions

Addressing concerns about the United Kingdom's trade ties with the Asian nation she said: "The UK's security interests always take priority."

Last week's announcement by China to strengthen trade restrictions on critical minerals and other materials that are key for advanced tech production led US President Donald Trump to threaten an extra 100% tariff on goods from the Asian country, raising the prospect of an full-scale trade war between the two global powers.

The American finance chief called the Chinese move "commercial pressure" and "a global supply chain control attempt."

Questioned on considering the American proposal to join its battle with China, Reeves said she was "very concerned" by Chinese actions and called on the Chinese government "not to put up barriers and restrict access."

She said the move was "harmful for the world economy and creates further obstacles."

"It is my opinion there are fields where we need to address China, but there are also important opportunities to export to Chinese markets, including financial services and other sectors of the economy. We've got to get that balance correct."

The chancellor also confirmed she was working with other major economies "on our own critical minerals approach, so that we are less reliant."

Health Service Drug Costs and Investment

Reeves also acknowledged that the cost the NHS pays for pharmaceuticals could rise as a result of current negotiations with the US government and its drugs companies, in exchange for lower tariffs and capital.

A number of the biggest global pharmaceutical manufacturers have said recently that they are either pausing or abandoning projects in the UK, with some blaming the insufficient payments they are receiving.

Recently, the government science advisor said the cost the NHS spends on drugs would need to increase to stop firms and drug research funding departing from the United Kingdom.

Reeves informed the BBC: "We have seen because of the cost structure, that drug testing, innovative medicines have not been available in the UK in the manner that they are in other EU nations."

"The objective is to make sure that individuals getting treatment from the NHS are can receive the finest life-saving drugs in the world. And so we are looking at this situation, and... looking to obtain more investment into the UK."