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Treasury head Rachel Reeves has stated she is preparing "targeted measures to address cost of living challenges" in next month's financial statement.

Speaking to media outlets, she emphasized that reducing price rises is a shared responsibility of both the administration and the Bank of England.

The UK's inflation rate is expected to be the highest among the G7 developed nations this year and the following year.

Possible Utility Cost Interventions

Reports indicate the government could intervene to bring down energy bills, for instance by slashing the current 5% level of VAT charged on energy.

A further approach is to lower some of the policy costs presently included in household expenses.

Fiscal Limitations and Analyst Predictions

The government will obtain the next assessment from the official forecaster, the Office for Budget Responsibility, on Monday, which will show how much space there is for such measures.

The expectation from most analysts is that the Chancellor will have to declare higher taxes or spending cuts in order to adhere to her voluntary fiscal targets.

Previously on Thursday, analysis suggested there was a £22bn deficit for the Treasury chief to resolve, which is at the lower end of expectations.

"It is a joint job between the central bank and the administration to continue tackling some of the drivers of inflation," Reeves told the BBC in the US capital, at the annual meetings of the IMF and World Bank.

Revenue Commitments and Global Issues

While a great deal of the attention has been on probable tax rises, the chancellor said the most recent figures from the fiscal watchdog had not altered her vow to campaign commitments not to raise rates on earnings tax, sales tax or National Insurance.

She attributed an "uncertain world" with rising international and commercial concerns for the Budget tax moves, probably to be directed on those "most able to pay."

Global Trade Disputes

Referring to worries about the UK's trade ties with the Asian nation she said: "The UK's national security invariably take priority."

Last week's announcement by China to strengthen trade restrictions on critical minerals and other materials that are essential for advanced tech production led US President Donald Trump to propose an further 100% tariff on goods from the Asian country, raising the risk of an full-scale commercial conflict between the two largest economies.

The US Treasury Secretary described China's decision "economic coercion" and "a global supply chain control attempt."

Asked about accepting the American proposal to join 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 action was "harmful for the world economy and creates additional obstacles."

"I believe there are sectors where we should challenge China, but there are also important chances to trade with China's economy, including banking sector and other areas of the economy. We've got to get that balance right."

The Treasury chief also stated she was working with other major economies "regarding our own essential resources strategy, so that we are reduced dependence."

Health Service Drug Pricing and Investment

The Chancellor also recognized that the price the NHS spends on medicines could go up as a consequence of current discussions with the US government and its pharmaceutical firms, in exchange for reduced taxes and investment.

Some of the world's largest drug companies have said in recent statements that they are either halting or abandoning operations in the United Kingdom, with several attributing the insufficient payments they are obtaining.

Recently, the Science Minister said the price the NHS pays for medicines would have to increase to prevent businesses and pharmaceutical investment departing from the UK.

The Chancellor informed the BBC: "We have seen because of the pricing regime, that medical research, recent pharmaceuticals have not been available in the United Kingdom in the extent that they are in other European countries."

"The objective is to guarantee that individuals getting care from the National Health Service are can receive the finest life-saving medicines in the world. And so we are looking at all of that, and... looking to obtain more capital into the UK."