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Treasury head Rachel Reeves has revealed she is preparing "focused steps to deal with cost of living challenges" in the upcoming financial statement.

During an interview with media outlets, she noted that lowering price rises is a collective task of both the administration and the central bank.

The UK's price growth is projected to be the highest among the G7 industrialized countries this calendar year and next.

Potential Utility Cost Interventions

It is understood the administration could take action to bring down energy bills, for instance by reducing the current 5% level of VAT charged on energy supplies.

An additional option is to cut some of the policy costs currently added to household expenses.

Budgetary Limitations and Analyst Predictions

The administration will obtain the next assessment from the official forecaster, the Office for Budget Responsibility, on Monday, which will reveal how much scope there is for such actions.

The consensus from most experts is that the Chancellor will have to announce tax rises or budget cuts in order to fulfill her declared fiscal targets.

Previously on Thursday, estimates suggested there was a £22bn deficit for the chancellor to resolve, which is at the more modest range of expectations.

"It is a shared task between the central bank and the administration to further reduce some of the sources of inflation," Reeves told the BBC in the US capital, at the yearly gatherings of the IMF and global financial institution.

Revenue Pledges and International Concerns

While much of the focus has been on likely tax rises, the Treasury chief said the most recent data from the OBR had not changed her pledge to manifesto promises not to raise rates on income tax, sales tax or social security contributions.

She blamed an "uncertain world" with increasing geopolitical and commercial tensions for the Budget revenue measures, likely to be targeted on those "with the broadest shoulders."

Global Economic Tensions

Referring to apprehensions about the United Kingdom's economic relations with China she said: "Our national security invariably take priority."

Recent announcement by China to tighten trade restrictions on critical minerals and other materials that are key for advanced tech production led US President the US President to suggest an further 100% import tax on goods from the Asian country, increasing the possibility of an all-out commercial conflict between the two largest economies.

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

Asked about accepting the American proposal to join its dispute with the Asian nation, Reeves said she was "very concerned" by Chinese actions and encouraged the Beijing authorities "to avoid restrictions and limit trade."

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

"I believe there are areas where we should address Chinese policies, but there are also valuable prospects to trade with China's economy, including financial services and other areas of the economy. We've got to achieve that equilibrium correct."

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

NHS Drug Pricing and Funding

Reeves also acknowledged that the price the National Health Service spends on medicines could rise as a result of current negotiations with the Trump administration and its drugs companies, in exchange for lower tariffs and funding.

Some of the world's largest drug companies have said lately that they are either halting or canceling investments in the United Kingdom, with some attributing the insufficient payments they are getting.

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

The Chancellor told media: "We have seen due to the payment system, that clinical trials, recent pharmaceuticals have not been available in the UK in the manner that they are in other continental states."

"Our aim is to make sure that individuals receiving care from the National Health Service are able to receive the top life-saving drugs in the world. And so we are looking at these issues, and... aiming to attract additional funding into the UK."