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Treasury head Rachel Reeves has stated she is planning "focused steps to address cost of living challenges" in next month's financial statement.

In comments to the BBC, she emphasized that lowering price rises is a joint task of both the administration and the Bank of England.

The United Kingdom's price growth is expected to be the highest among the Group of Seven advanced economies this calendar year and the following year.

Possible Utility Cost Measures

Sources suggest the government could take action to reduce utility costs, for example by cutting the current 5% level of value-added tax applied on energy.

Another approach is to cut some of the regulatory levies currently added to bills.

Fiscal Constraints and Expert Expectations

The government will receive the latest assessment from the independent fiscal watchdog, the Office for Budget Responsibility, on the start of the week, which will reveal how much scope there is for such actions.

The consensus from most experts is that the Chancellor will have to announce tax increases or spending cuts in order to fulfill her voluntary debt limits.

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

"There's a joint responsibility between the central bank and the government to continue tackling some of the drivers of price increases," the Chancellor informed the BBC in Washington, at the annual meetings of the IMF and World Bank.

Revenue Commitments and Global Concerns

While a great deal of the attention has been on likely tax increases, the chancellor said the most recent information from the fiscal watchdog had not changed her commitment to election pledges not to raise tax levels on income tax, VAT or social security contributions.

She attributed an "unpredictable world" with increasing international and trade issues for the fiscal revenue measures, likely to be directed on those "with the broadest shoulders."

International Trade Tensions

Referring to apprehensions about the UK's economic relations with the Asian nation she said: "Our security interests always take priority."

Recent announcement by Chinese authorities to strengthen export controls on rare earths and other resources that are key for advanced tech manufacturing led US President Donald Trump to threaten an further 100% import tax on goods from China, raising the prospect of an full-scale trade war between the two global powers.

The US Treasury Secretary called China's action "commercial pressure" and "a international production power grab."

Questioned on accepting the US offer to participate in its battle with the Asian nation, the Chancellor said she was "extremely troubled" by China's measures and encouraged the Chinese government "not to put up barriers and limit trade."

She said the action was "damaging for the global economy and generates further headwinds."

"In my view there are areas where we must address China, but there are also significant chances to sell into Chinese markets, including banking sector and other sectors of the economy. We've got to maintain that balance right."

The chancellor also confirmed she was collaborating with G7 counterparts "on our own essential resources strategy, so that we are less reliant."

NHS Drug Costs and Investment

Reeves also acknowledged that the cost the NHS pays for medicines could increase as a result of current discussions with the Trump administration and its drugs companies, in return for lower tariffs and investment.

A number of the biggest global pharmaceutical manufacturers have said lately that they are either halting or abandoning operations in the UK, with several blaming the insufficient payments they are getting.

Recently, the government science advisor said the cost the health service pays for drugs would must increase to stop businesses and drug research funding departing from the UK.

The Chancellor told media: "We have seen as a result of the payment system, that clinical trials, recent pharmaceuticals have not been provided in the UK in the way that they are in other EU nations."

"Our aim is to ensure that individuals receiving treatment from the National Health Service are able to receive the finest essential medicines in the world. And so we are examining this situation, and... aiming to secure increased investment into Britain."