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Chancellor Rachel Reeves has revealed she is planning "specific measures to tackle cost of living issues" in the upcoming financial statement.

During an interview with media outlets, she emphasized that curbing price rises is a shared responsibility of both the government and the Bank of England.

The United Kingdom's inflation rate is projected to be the highest among the Group of Seven advanced economies this calendar year and next.

Possible Utility Cost Measures

Sources suggest the administration could take action to reduce energy bills, for example by reducing the current 5% level of value-added tax charged on energy supplies.

A further possibility is to lower some of the regulatory levies currently added to household expenses.

Budgetary Limitations and Expert Expectations

The government will receive the latest assessment from the independent fiscal watchdog, the OBR, on Monday, which will show how much scope there is for these actions.

The view from most experts is that Reeves will have to introduce higher taxes or spending cuts in order to adhere to her voluntary fiscal targets.

Earlier on Thursday, calculations showed there was a £22bn gap for the chancellor to resolve, which is at the lower end of forecasts.

"It is a shared job between the central bank and the government to further reduce some of the sources of price increases," Reeves stated to reporters in the US capital, at the yearly gatherings of the IMF and World Bank.

Tax Pledges and Global Issues

While a great deal of the focus has been on probable tax increases, the Treasury chief said the latest information from the OBR had not altered her commitment to manifesto promises not to raise rates on income tax, VAT or social security contributions.

She attributed an "uncertain global environment" with increasing geopolitical and trade issues for the fiscal tax moves, likely to be directed on those "with the broadest shoulders."

International Trade Disputes

Addressing concerns about the UK's commercial links with the Asian nation she said: "The UK's national security invariably take priority."

Recent announcement by China to tighten export controls on critical minerals and other resources that are essential for high-technology production led American leader the US President to suggest an further 100% import tax on imports from the Asian country, increasing the risk of an all-out trade war between the two global powers.

The American finance chief described the Chinese action "commercial pressure" and "a global supply chain control attempt."

Inquired about accepting the US offer to participate in its battle with China, the Chancellor said she was "extremely troubled" by Chinese actions and called on the Chinese government "not to put up barriers and limit trade."

She said the decision was "bad for the world economy and causes additional headwinds."

"I believe there are sectors where we should address Chinese policies, but there are also significant prospects to export to Chinese markets, including financial services and other areas of the economy. We've got to get that balance right."

The Treasury chief also confirmed she was cooperating with international partners "regarding our own essential resources approach, so that we are more independent."

Health Service Drug Pricing and Investment

The Chancellor also acknowledged that the price the NHS spends on pharmaceuticals could rise as a result of current discussions with the Trump administration and its pharmaceutical firms, in return for reduced taxes and funding.

A number of the world's largest drug companies have said in recent statements that they are either delaying or abandoning investments in the United Kingdom, with several attributing the modest returns they are receiving.

Recently, the government science advisor said the price the health service spends on drugs would have to increase to prevent firms and pharmaceutical investment departing from the United Kingdom.

The Chancellor stated to media: "It has been observed because of the payment system, that drug testing, new drugs have not been provided in the United Kingdom in the manner that they are in other continental states."

"We want to ensure that patients getting care from the NHS are can obtain the finest essential treatments in the world. And so we are looking at this situation, and... looking to secure additional investment into the UK."