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Chancellor Rachel Reeves has announced she is preparing "focused measures to tackle cost of living pressures" in next month's financial statement.

In comments to the BBC, she noted that lowering price rises is a collective responsibility of both the government and the Bank of England.

The UK's price growth is forecast to be the highest among the G7 industrialized countries this year and the following year.

Possible Energy Bill Measures

Reports indicate the government could take action to reduce utility costs, for example by slashing the current 5% rate of VAT applied on energy supplies.

A further option is to reduce some of the government charges currently included in bills.

Fiscal Constraints and Analyst Predictions

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

The expectation from the majority of analysts is that the Chancellor will have to introduce higher taxes or budget cuts in order to meet her voluntary debt limits.

Earlier on the same day, calculations indicated there was a £22 billion shortfall for the chancellor to fill, which is at the more modest range of projections.

"There's a collective responsibility between the central bank and the administration to further reduce some of the sources of inflation," the Chancellor told the BBC in the US capital, at the annual meetings of the International Monetary Fund and World Bank.

Tax Pledges and Global Concerns

While much of the focus has been on probable tax increases, the Treasury chief said the most recent data from the fiscal watchdog had not altered her vow to election pledges not to increase rates on earnings tax, sales tax or National Insurance.

She attributed an "uncertain global environment" with growing international and commercial tensions for the Budget tax moves, probably to be directed on those "wealthiest."

Global Trade Disputes

Addressing apprehensions about the United Kingdom's economic relations with China she said: "The UK's security interests invariably take priority."

Last week's declaration by Chinese authorities to tighten export controls on rare earths and other materials that are essential for advanced tech production led US President the US President to threaten an further 100% import tax on imports from China, raising the prospect of an full-scale commercial conflict between the two economic giants.

The US Treasury Secretary called China's decision "commercial pressure" and "a global supply chain power grab."

Questioned on accepting the American proposal to participate in its conflict with China, the Chancellor said she was "extremely troubled" by China's actions and encouraged the Chinese government "not to put up barriers and limit trade."

She said the move was "harmful for the global economy and creates additional headwinds."

"It is my opinion there are sectors where we must challenge China, but there are also significant opportunities to export to Chinese markets, including banking sector and other areas of the economy. We've got to achieve that balance appropriate."

The Treasury chief also stated she was collaborating with G7 counterparts "on our own critical minerals strategy, so that we are more independent."

Health Service Medicine Pricing and Funding

Reeves also acknowledged that the cost the NHS spends on medicines could go up as a result of current negotiations with the Trump administration and its drugs companies, in return for reduced taxes and investment.

A number of the biggest global pharmaceutical manufacturers have said recently that they are either pausing or abandoning projects in the United Kingdom, with several blaming the modest returns they are getting.

Last month, the Science Minister said the cost the NHS pays for medicines would need to increase to halt firms and pharmaceutical investment departing from the United Kingdom.

The Chancellor stated to media: "We have seen because of the payment system, that medical research, innovative medicines have not been offered in the United Kingdom in the extent that they are in other European countries."

"Our aim is to make sure that individuals receiving care from the National Health Service are able to obtain the top critical drugs in the world. And so we are reviewing all of that, and... looking to attract additional capital into Britain."