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Treasury head Rachel Reeves has revealed she is preparing "specific steps to deal with cost of living pressures" in next month's financial statement.

Speaking to the BBC, she emphasized that reducing inflation is a shared task of both the government and the Bank of England.

The UK's inflation rate is forecast to be the most elevated among the Group of Seven industrialized countries this year and next.

Possible Energy Bill Measures

It is understood the administration could intervene to bring down utility costs, such as by reducing the present 5% rate of VAT charged on energy supplies.

An additional possibility is to lower some of the government charges presently included in household expenses.

Budgetary Constraints and Analyst Expectations

The government will receive the latest report from the official forecaster, the OBR, on Monday, which will reveal how much room there is for such measures.

The view from most experts is that the Chancellor will have to declare tax increases or budget cuts in order to meet her self-imposed debt limits.

Previously on Thursday, estimates showed there was a £22bn gap for the chancellor to fill, which is at the lower end of expectations.

"There's a shared responsibility between the central bank and the administration to continue tackling some of the sources of price increases," the Chancellor stated to reporters in the US capital, at the yearly gatherings of the IMF 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 information from the fiscal watchdog had not changed her vow to election pledges not to increase tax levels on earnings tax, sales tax or National Insurance.

She blamed an "unpredictable world" with rising international and commercial issues for the Budget revenue measures, likely to be directed on those "most able to pay."

Global Economic Disputes

Referring to concerns about the UK's economic relations with China she said: "The UK's security interests always take priority."

Last week's statement by Chinese authorities to increase trade restrictions on critical minerals and other resources that are key for high-technology manufacturing led US President Donald Trump to threaten an extra 100% import tax on imports from China, increasing the possibility of an full-scale commercial conflict between the two economic giants.

The US Treasury Secretary described China's action "economic coercion" and "a international production power grab."

Asked about considering the US offer to join its dispute with China, Reeves said she was "extremely troubled" by Chinese actions and encouraged the Chinese government "to avoid restrictions and restrict access."

She said the decision was "harmful for the global economy and generates additional headwinds."

"In my view there are fields where we must address China, but there are also valuable opportunities to sell into Chinese markets, including banking sector and other areas of the economic system. We've got to maintain that balance correct."

The Treasury chief also affirmed she was working with G7 counterparts "on our own critical minerals strategy, so that we are reduced dependence."

Health Service Medicine Pricing and Funding

The Chancellor also admitted that the cost the NHS pays for drugs could go up as a result of current negotiations with the Trump administration and its drugs companies, in exchange for lower tariffs and investment.

Some of the biggest global pharmaceutical manufacturers have said in recent statements that they are either halting or scrapping investments in the United Kingdom, with several attributing the insufficient payments they are getting.

Recently, the government science advisor said the cost the NHS spends on medicines would need to go up to halt companies and pharmaceutical investment departing from the UK.

Reeves stated to media: "We have seen because of the cost structure, that medical research, innovative medicines have not been offered in the United Kingdom in the way that they are in other continental states."

"Our aim is to ensure that individuals receiving treatment from the National Health Service are able to receive the finest critical drugs in the globe. And so we are reviewing all of that, and... looking to obtain more funding into Britain."