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Treasury head Rachel Reeves has announced she is planning "targeted steps to deal with cost of living pressures" in the forthcoming financial statement.

Speaking to the BBC, she noted that reducing price rises is a collective responsibility of both the administration and the central bank.

The UK's price growth is forecast to be the most elevated among the Group of Seven industrialized countries this year and the following year.

Potential Energy Bill Interventions

Sources suggest the administration could take action to lower utility costs, for example by slashing the present 5% rate of value-added tax charged on energy.

A further possibility is to cut some of the government charges currently added to bills.

Budgetary Constraints and Expert Expectations

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

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

Earlier on Thursday, estimates indicated there was a £22 billion gap for the Treasury chief to address, which is at the lower end of projections.

"There's a collective responsibility between the Bank of England and the administration to continue tackling some of the causes of inflation," the Chancellor informed the BBC in Washington, at the yearly gatherings of the IMF and World Bank.

Tax Pledges and Global Issues

While a great deal of the attention has been on likely tax rises, the chancellor said the latest data from the fiscal watchdog had not altered her vow to election pledges not to raise rates on earnings tax, sales tax or National Insurance.

She attributed an "unpredictable global environment" with rising international and trade tensions for the fiscal revenue measures, probably to be targeted on those "most able to pay."

International Trade Tensions

Referring to concerns about the UK's trade ties with China she said: "The UK's security interests invariably are paramount."

Recent declaration by China to strengthen trade restrictions on critical minerals and other materials that are crucial for advanced tech manufacturing led American leader Donald Trump to propose an extra 100% tariff on imports from the Asian country, increasing the possibility of an full-scale commercial conflict between the two economic giants.

The US Treasury Secretary labeled the Chinese move "economic coercion" and "a global supply chain control attempt."

Questioned on considering the American proposal to participate in its dispute with China, Reeves said she was "very concerned" by Chinese actions and called on the Beijing authorities "not to put up barriers and restrict access."

She said the action was "harmful for the world economy and creates further obstacles."

"I believe there are sectors where we need to confront China, but there are also valuable prospects to sell into China's economy, including financial services and other areas of the economic system. We've got to achieve that equilibrium right."

The Treasury chief also affirmed she was working with G7 counterparts "regarding our own critical minerals plan, so that we are more independent."

Health Service Drug Costs and Investment

The Chancellor also recognized that the cost the NHS pays for drugs could go up as a consequence of current negotiations with the Trump administration and its drugs companies, in return for lower tariffs and funding.

Some of the biggest global pharmaceutical manufacturers have said lately that they are either halting or scrapping projects in the UK, with several blaming the low prices they are receiving.

Last month, the government science advisor said the cost the health service pays for medicines would need to go up to prevent firms and pharmaceutical investment departing from the United Kingdom.

The Chancellor stated to the BBC: "We have seen because of the payment system, that clinical trials, innovative medicines have not been available in the United Kingdom in the way that they are in other EU nations."

"The objective is to ensure that patients getting care from the National Health Service are can access the top critical treatments in the world. And so we are examining these issues, and... looking to secure increased investment into the UK."