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Treasury head Rachel Reeves has announced she is preparing "specific measures to deal with cost of living challenges" in next month's financial statement.

Speaking to media outlets, she stated that lowering inflation is a collective task of both the administration and the central bank.

The UK's price growth is expected to be the highest among the Group of Seven advanced economies this year and the following year.

Possible Utility Bill Measures

Reports indicate the administration could take action to lower energy bills, for example by cutting the current 5% level of VAT applied on energy supplies.

Another option is to reduce some of the government charges presently included in bills.

Budgetary Limitations and Expert Expectations

The government will receive the latest report from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will show 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.

Previously on Thursday, calculations showed there was a twenty-two billion pound deficit for the chancellor to address, which is at the more modest range of projections.

"There's a shared responsibility between the Bank of England and the administration to bear down further on some of the drivers of price increases," Reeves stated to reporters in Washington, at the yearly gatherings of the International Monetary Fund and World Bank.

Revenue Pledges and International Issues

While much of the focus has been on probable tax rises, the Treasury chief said the most recent information from the OBR had not altered her commitment to election pledges not to raise tax levels on earnings tax, sales tax or National Insurance.

She blamed an "uncertain global environment" with rising geopolitical and trade concerns for the Budget tax moves, probably to be focused on those "with the broadest shoulders."

Global Trade Tensions

Referring to apprehensions about the UK's commercial links with the Asian nation she said: "Our security interests always take priority."

Last week's statement by Chinese authorities to strengthen export controls on critical minerals and other materials that are key for high-technology manufacturing led US President the US President to propose an extra 100% tariff on imports from China, raising the possibility of an full-scale trade war between the two largest economies.

The US Treasury Secretary described China's decision "commercial pressure" and "a global supply chain control attempt."

Questioned on accepting the US offer to participate in its dispute with China, Reeves said she was "deeply worried" by China's measures and called on the Beijing authorities "not to put up barriers and restrict access."

She said the decision was "bad for the international commerce and causes additional obstacles."

"I believe there are fields where we must address Chinese policies, but there are also valuable chances to export to China's economy, including financial services and other sectors of the economic system. We've got to maintain that balance correct."

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

NHS Drug Pricing and Investment

Reeves also admitted that the cost the NHS pays for drugs could rise as a consequence of current discussions with the US government and its pharmaceutical firms, in exchange for lower tariffs and funding.

Some of the biggest global drug companies have said recently that they are either pausing or canceling operations in the United Kingdom, with some attributing the low prices they are obtaining.

Recently, the Science Minister said the price the NHS pays for medicines would have to increase to prevent businesses and drug research funding departing from the UK.

The Chancellor stated to the BBC: "It has been observed as a result of the cost structure, that clinical trials, recent pharmaceuticals have not been available in the UK in the manner that they are in other continental states."

"We want to ensure that people receiving care from the National Health Service are able to access the best life-saving drugs in the globe. And so we are reviewing these issues, and... aiming to obtain additional investment into Britain."