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Chancellor Rachel Reeves has revealed she is preparing "specific measures to address cost of living pressures" in the forthcoming financial statement.

During an interview with the BBC, she emphasized that curbing price rises is a shared task of both the administration and the central bank.

The UK's price growth is forecast to be the highest among the G7 advanced economies this calendar year and next.

Possible Energy Cost Interventions

It is understood the government could intervene to reduce utility costs, for instance by cutting the current 5% level of value-added tax charged on energy.

An additional approach is to lower some of the government charges currently included in household expenses.

Budgetary Constraints and Analyst Predictions

The government will receive the next report from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will clarify how much space there is for such actions.

The consensus from most analysts is that Reeves will have to introduce higher taxes or expenditure reductions in order to fulfill her declared borrowing rules.

Previously on the same day, calculations suggested there was a twenty-two billion pound gap for the Treasury chief to fill, which is at the more modest range of expectations.

"It is a shared task between the Bank of England and the administration to further reduce some of the causes of price increases," Reeves told reporters in the US capital, at the conferences of the IMF and global financial institution.

Revenue Commitments and Global Issues

While a great deal of the attention has been on expected tax increases, the Treasury chief said the latest data from the fiscal watchdog had not changed her vow to manifesto promises not to increase tax levels on income tax, sales tax or National Insurance.

She blamed an "unpredictable world" with rising geopolitical and trade concerns for the fiscal revenue measures, probably to be targeted on those "most able to pay."

Global Trade Tensions

Referring to worries about the United Kingdom's commercial links with China she said: "Our national security always come first."

Recent announcement by Chinese authorities to increase export controls on rare earths and other resources that are key for advanced tech production led American leader Donald Trump to suggest an additional 100% import tax on goods from China, increasing the risk of an all-out commercial conflict between the two global powers.

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

Questioned on considering the US offer to participate in its conflict with the Asian nation, Reeves said she was "deeply worried" by Chinese measures and encouraged the Chinese government "not to put up barriers and limit trade."

She said the decision was "bad for the world economy and generates additional obstacles."

"It is my opinion there are sectors where we should address China, but there are also important opportunities to sell into China's economy, including banking sector and other areas of the economy. We've got to maintain that balance appropriate."

The Treasury chief also affirmed she was cooperating with other major economies "regarding our own essential resources plan, so that we are less reliant."

Health Service Medicine Costs and Investment

The Chancellor also recognized that the cost the National Health Service pays for drugs could go up as a result of ongoing talks with the US government and its pharmaceutical firms, in exchange for lower tariffs and capital.

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 blaming the modest returns they are getting.

Recently, the Science Minister said the price the health service pays for medicines would need to rise to prevent companies and pharmaceutical investment departing from the United Kingdom.

The Chancellor informed media: "We have seen because of the pricing regime, that medical research, innovative medicines have not been offered in the United Kingdom in the way that they are in other continental states."

"The objective is to guarantee that patients getting care from the National Health Service are can obtain the finest life-saving drugs in the world. And so we are reviewing this situation, and... seeking to obtain additional capital into the UK."