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Chancellor Rachel Reeves has revealed she is preparing "focused action to tackle cost of living pressures" in the upcoming financial statement.

During an interview with the BBC, she emphasized that curbing inflation is a collective responsibility of both the administration and the Bank of England.

The United Kingdom's price growth is forecast to be the highest among the G7 advanced economies this year and the following year.

Possible Utility Cost Measures

Sources suggest the administration could take action to reduce energy bills, for instance by slashing the present 5% rate of VAT applied on energy.

A further possibility is to lower some of the regulatory levies currently added to household expenses.

Fiscal Constraints and Analyst Expectations

The administration will obtain the latest assessment from the independent fiscal watchdog, the OBR, on Monday, which will show how much room there is for such measures.

The expectation from most economists is that the Chancellor will have to introduce tax rises or spending cuts in order to fulfill her declared fiscal targets.

Earlier on Thursday, calculations indicated there was a £22 billion gap for the chancellor to address, which is at the more modest range of forecasts.

"It is a collective task between the Bank of England and the government to further reduce some of the causes of inflation," the Chancellor informed the BBC in the US capital, at the yearly gatherings of the IMF and World Bank.

Revenue Commitments and Global Concerns

While a great deal of the focus has been on likely tax rises, the chancellor said the most recent figures from the fiscal watchdog had not altered her commitment to election pledges not to raise rates on earnings tax, sales tax or social security contributions.

She blamed an "uncertain world" with growing geopolitical and commercial tensions for the fiscal tax moves, probably to be focused on those "with the broadest shoulders."

Global Trade Tensions

Commenting on apprehensions about the United Kingdom's trade ties with the Asian nation she said: "Our security interests always take priority."

Last week's statement by Chinese authorities to tighten export controls on rare earths and other resources that are essential for high-technology manufacturing led US President Donald Trump to suggest an additional 100% import tax on imports from China, raising the risk of an all-out trade war between the two largest economies.

The American finance chief labeled China's move "economic coercion" and "a global supply chain control attempt."

Questioned on considering the US offer to participate in its conflict with China, Reeves said she was "very concerned" by China's measures and urged the Beijing authorities "not to put up barriers and limit trade."

She said the move was "harmful for the global economy and creates further obstacles."

"In my view there are fields where we need to address China, but there are also valuable prospects to export to China's economy, including banking sector and other areas of the economic system. We've got to maintain that equilibrium right."

The chancellor also confirmed she was collaborating with international partners "on our own essential resources plan, so that we are reduced dependence."

Health Service Medicine Pricing and Investment

Reeves also acknowledged that the price the National Health Service spends on medicines could increase as a result of ongoing talks with the Trump administration and its drugs companies, in exchange for reduced taxes and funding.

A number of the biggest global drug companies have said in recent statements that they are either pausing or canceling projects in the UK, with several attributing the modest returns they are receiving.

Last month, the Science Minister said the cost the health service spends on medicines would have to rise to halt businesses and pharmaceutical investment leaving the United Kingdom.

Reeves told media: "It has been observed due to the pricing regime, that drug testing, recent pharmaceuticals have not been provided in the United Kingdom in the extent that they are in other EU nations."

"We want to guarantee that people receiving treatment from the National Health Service are can obtain the finest life-saving medicines in the world. And so we are reviewing all of that, and... looking to obtain increased capital into Britain."