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

Speaking to media outlets, she noted that curbing inflation is a joint duty of both the government and the Bank of England.

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

Possible Energy Cost Measures

It is understood the administration could intervene to reduce utility costs, for example by cutting the present 5% level of VAT applied on energy supplies.

A further approach is to lower some of the policy costs currently added to bills.

Budgetary Limitations and Analyst Predictions

The government will obtain the next assessment from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will show how much scope there is for such measures.

The expectation from the majority of analysts is that Reeves will have to announce tax rises or budget cuts in order to adhere to her declared borrowing rules.

Previously on the same day, calculations showed there was a £22bn shortfall for the Treasury chief to fill, which is at the lower end of expectations.

"It is a joint responsibility between the central bank and the government to further reduce some of the drivers of inflation," Reeves informed the BBC in Washington, at the yearly gatherings of the IMF and World Bank.

Tax Pledges and International Concerns

While a great deal of the focus has been on likely tax increases, the Treasury chief said the latest figures from the fiscal watchdog had not changed her commitment to campaign commitments not to increase tax levels on earnings tax, VAT or social security contributions.

She blamed an "uncertain global environment" with increasing international and trade concerns for the Budget tax moves, probably to be targeted on those "with the broadest shoulders."

International Trade Tensions

Referring to worries about the UK's commercial links with China she said: "The UK's security interests invariably take priority."

Recent announcement by China to strengthen export controls on rare earths and other materials that are essential for advanced tech manufacturing led US President the US President to propose an extra 100% tariff on imports from the Asian country, increasing the risk of an full-scale trade war between the two largest economies.

The American finance chief described the Chinese action "economic coercion" and "a international production power grab."

Questioned on accepting the US offer to participate in its battle with China, the Chancellor said she was "deeply worried" by China's measures and urged the Chinese government "not to put up barriers and restrict access."

She said the action was "harmful for the international commerce and causes further headwinds."

"In my view there are sectors where we should challenge Chinese policies, but there are also valuable opportunities to export to China's economy, including banking sector and other sectors of the economic system. We've got to achieve that equilibrium right."

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

Health Service Medicine Pricing and Funding

The Chancellor also acknowledged that the price the NHS pays for pharmaceuticals could rise as a result of ongoing talks with the Trump administration and its pharmaceutical firms, in return for lower tariffs and investment.

A number of the world's largest pharmaceutical manufacturers have said recently that they are either delaying or canceling investments in the United Kingdom, with several blaming the modest returns they are getting.

Last month, the government science advisor said the cost the health service pays for medicines would have to rise to prevent businesses and drug research funding leaving the United Kingdom.

Reeves informed media: "We have seen due to the payment system, that drug testing, innovative medicines have not been available in the United Kingdom in the way that they are in other European countries."

"Our aim is to guarantee that individuals receiving treatment from the NHS are can obtain the best essential treatments in the globe. And so we are examining this situation, and... looking to secure increased investment into Britain."