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

During an interview with media outlets, she emphasized that lowering 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 G7 advanced economies this year and the following year.

Possible Energy Bill Measures

Reports indicate the government could intervene to reduce utility costs, for instance by cutting the current 5% level of value-added tax charged on energy supplies.

An additional approach is to cut some of the government charges currently included in household expenses.

Budgetary Limitations and Analyst Expectations

The government will receive the next draft from the official forecaster, the OBR, on Monday, which will show how much space there is for such actions.

The expectation from the majority of economists is that the Chancellor will have to announce tax rises or spending cuts in order to adhere to her declared debt limits.

Previously on Thursday, analysis suggested there was a £22 billion gap for the chancellor to address, which is at the lower end of projections.

"It is a collective responsibility between the central bank and the administration to continue tackling some of the causes of inflation," the Chancellor stated to the BBC in the US capital, at the yearly gatherings of the IMF and World Bank.

Tax Commitments and Global Concerns

While much of the focus has been on probable tax increases, the Treasury chief said the most recent data from the OBR had not altered her vow to manifesto promises not to increase rates on income tax, sales tax or social security contributions.

She blamed an "uncertain global environment" with increasing geopolitical and commercial tensions for the fiscal revenue measures, likely to be focused on those "most able to pay."

Global Trade Tensions

Addressing apprehensions about the UK's economic relations with China she said: "The UK's security interests invariably come first."

Last week's declaration by China to increase export controls on critical minerals and other resources that are essential for high-technology manufacturing led US President the US President to threaten an extra 100% import tax on imports from China, increasing the prospect of an all-out trade war between the two largest economies.

The US Treasury Secretary described the Chinese move "commercial pressure" and "a global supply chain control attempt."

Asked about considering the US offer to join its battle with China, the Chancellor said she was "deeply worried" by China's actions and called on the Chinese government "to avoid restrictions and limit trade."

She said the move was "harmful for the international commerce and creates additional challenges."

"It is my opinion there are sectors where we should address Chinese policies, but there are also important chances to export to China's economy, including financial services and other areas of the economic system. We've got to get that equilibrium right."

The Treasury chief also stated she was working with international partners "regarding our own essential resources plan, so that we are less reliant."

Health Service Drug Costs and Investment

Reeves also admitted that the cost the National Health Service pays for medicines could go up as a result of current talks with the US government and its pharmaceutical firms, in return for reduced taxes and funding.

A number of the world's largest pharmaceutical manufacturers have said recently that they are either halting or abandoning investments in the UK, with several attributing the modest returns they are getting.

Recently, the government science advisor said the price the NHS pays for medicines would need to increase to prevent businesses and drug research funding leaving the United Kingdom.

The Chancellor informed media: "We have seen due to the payment system, that drug testing, recent pharmaceuticals have not been offered in the UK in the manner that they are in other continental states."

"Our aim is to make sure that individuals getting treatment from the NHS are able to receive the top life-saving treatments in the globe. And so we are looking at these issues, and... aiming to secure more investment into the UK."