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Chancellor Reeves has announced she is preparing "focused measures to deal with cost of living issues" in the forthcoming financial statement.

In comments to media outlets, she stated that reducing inflation is a collective task of both the government and the Bank of England.

The UK's inflation rate is forecast to be the highest among the Group of Seven developed nations this calendar year and the following year.

Possible Utility Cost Interventions

It is understood the administration could take action to lower utility costs, such as by reducing the present 5% level of value-added tax applied on energy supplies.

A further option is to lower some of the government charges currently included in bills.

Fiscal Constraints and Expert Predictions

The government will receive the latest draft from the official forecaster, the OBR, on Monday, which will show how much space there is for these actions.

The expectation from most experts is that the Chancellor will have to announce tax increases or expenditure reductions in order to adhere to her declared borrowing rules.

Earlier on Thursday, estimates suggested there was a £22bn gap for the Treasury chief to address, which is at the more modest range of projections.

"There's a shared responsibility between the Bank of England and the government to further reduce some of the sources of price increases," Reeves told reporters in Washington, 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 likely tax rises, the Treasury chief said the most recent figures from the fiscal watchdog had not changed her commitment to election pledges not to raise rates on earnings tax, VAT or National Insurance.

She blamed an "uncertain world" with rising geopolitical and trade tensions for the Budget revenue measures, likely to be focused on those "most able to pay."

Global Economic Tensions

Referring to apprehensions about the UK's economic relations with the Asian nation she said: "The UK's security interests invariably come first."

Last week's announcement by Chinese authorities to tighten trade restrictions on rare earths and other resources that are key for advanced tech production led American leader Donald Trump to propose an extra 100% tariff on goods from China, raising the possibility of an full-scale commercial conflict between the two largest economies.

The American finance chief described the Chinese action "economic coercion" and "a global supply chain power grab."

Questioned on accepting the US offer to participate in its dispute with the Asian nation, Reeves said she was "very concerned" by Chinese actions and encouraged the Chinese government "to avoid restrictions and restrict access."

She said the action was "damaging for the international commerce and generates further obstacles."

"In my view there are fields where we must challenge Chinese policies, but there are also significant chances to trade with Chinese markets, including financial services and other sectors of the economy. We've got to maintain that balance right."

The chancellor also affirmed she was collaborating with G7 counterparts "regarding our own critical minerals strategy, so that we are less reliant."

Health Service Medicine Costs and Investment

The Chancellor also admitted that the price the NHS spends on drugs could increase as a consequence of ongoing discussions with the Trump administration and its drugs companies, in exchange for lower tariffs and investment.

A number of the world's largest drug companies have said in recent statements that they are either delaying or scrapping operations in the UK, with several blaming the modest returns they are obtaining.

Recently, the Science Minister said the price the NHS pays for drugs would must rise to prevent companies and drug research funding leaving the UK.

Reeves informed the BBC: "We have seen as a result of the payment system, that medical research, innovative medicines have not been provided in the UK in the manner that they are in other EU nations."

"We want to ensure that patients receiving treatment from the NHS are can access the best essential drugs in the world. And so we are reviewing these issues, and... looking to attract more capital into the UK."