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Chancellor Rachel Reeves has stated she is preparing "focused action to tackle cost of living issues" in next month's financial statement.

In comments to media outlets, she emphasized that curbing price rises is a shared task of both the administration and the Bank of England.

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

Possible Utility Cost Measures

Reports indicate the administration could take action to reduce energy bills, for instance by slashing the present 5% level of value-added tax applied on energy.

An additional possibility is to reduce some of the government charges currently added to bills.

Budgetary Limitations and Expert Expectations

The government will obtain the latest report from the independent fiscal watchdog, the OBR, on Monday, which will reveal how much scope there is for such actions.

The expectation from most economists is that the Chancellor will have to introduce tax rises or spending cuts in order to fulfill her declared borrowing rules.

Previously on the same day, calculations suggested there was a twenty-two billion pound shortfall for the chancellor to address, which is at the lower end of expectations.

"It is a shared responsibility between the Bank of England and the government to bear down further on some of the drivers of inflation," Reeves informed the BBC in Washington, at the conferences of the International Monetary Fund and World Bank.

Tax Commitments and International Issues

While much of the attention has been on probable tax rises, the Treasury chief said the latest data from the fiscal watchdog had not altered her commitment to election pledges not to raise tax levels on earnings tax, sales tax or social security contributions.

She attributed an "uncertain world" with rising international and trade concerns for the fiscal tax moves, likely to be focused on those "with the broadest shoulders."

International Economic Disputes

Commenting on worries about the UK's trade ties with the Asian nation she said: "Our national security invariably take priority."

Recent declaration by China to strengthen trade restrictions on rare earths and other resources that are key for advanced tech manufacturing led US President the US President to propose an further 100% import tax on goods from China, increasing the risk of an full-scale commercial conflict between the two global powers.

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

Asked about accepting the American proposal to join its dispute with China, the Chancellor said she was "very concerned" by Chinese measures and called on the Chinese government "not to put up barriers and restrict access."

She said the move was "bad for the world economy and causes additional challenges."

"I believe there are areas where we should challenge Chinese policies, but there are also valuable opportunities to sell into Chinese markets, including financial services and other areas of the economy. We've got to achieve that equilibrium right."

The Treasury chief also confirmed she was collaborating with international partners "regarding our own critical minerals strategy, so that we are reduced dependence."

NHS Drug Costs and Investment

Reeves also acknowledged that the price the National Health Service pays for drugs could increase as a consequence of ongoing negotiations with the US government and its drugs companies, in return for reduced taxes and capital.

Some of the biggest global drug companies have said lately that they are either delaying or scrapping projects in the UK, with several attributing the insufficient payments they are obtaining.

Recently, the Science Minister said the cost the NHS spends on medicines would need to rise to stop businesses and pharmaceutical investment leaving the UK.

Reeves informed media: "It has been observed due to the payment system, that medical research, innovative medicines have not been provided in the UK in the manner that they are in other continental states."

"We want to ensure that individuals getting care from the NHS are can obtain the top critical medicines in the world. And so we are examining these issues, and... seeking to obtain more investment into Britain."