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

During an interview with the BBC, she stated that lowering price rises is a shared duty of both the administration and the Bank of England.

The UK's price growth is expected to be the highest among the G7 developed nations this year and next.

Potential Utility Cost Measures

Reports indicate the government could take action to reduce utility costs, for instance by reducing the current 5% level of VAT applied on energy.

A further possibility is to cut some of the government charges presently added to bills.

Budgetary Constraints and Analyst Predictions

The administration will receive the latest report from the official forecaster, the Office for Budget Responsibility, on the start of the week, which will show how much room there is for these actions.

The consensus from most analysts is that the Chancellor will have to announce higher taxes or budget cuts in order to meet her voluntary borrowing rules.

Earlier on the same day, calculations indicated there was a £22bn shortfall for the Treasury chief to address, which is at the lower end of forecasts.

"It is a joint job between the central bank and the administration to continue tackling some of the drivers of inflation," Reeves informed reporters in the US capital, at the annual meetings of the International Monetary Fund and global financial institution.

Revenue Commitments and Global Concerns

While much of the attention has been on likely tax rises, the chancellor said the latest data from the fiscal watchdog had not altered her pledge to election pledges not to raise rates on income tax, sales tax or social security contributions.

She attributed an "uncertain global environment" with increasing geopolitical and trade tensions for the Budget revenue measures, probably to be targeted on those "most able to pay."

International Economic Tensions

Commenting on apprehensions about the UK's trade ties with China she said: "Our security interests invariably take priority."

Recent declaration by China to strengthen trade restrictions on rare earths and other resources that are essential for high-technology manufacturing led US President the US President to suggest an additional 100% tariff on imports from the Asian country, increasing the possibility of an full-scale trade war between the two largest economies.

The US Treasury Secretary called the Chinese move "commercial pressure" and "a global supply chain control attempt."

Questioned on accepting the American proposal to participate in its battle with the Asian nation, the Chancellor said she was "deeply worried" by Chinese actions and urged the Chinese government "not to put up barriers and limit trade."

She said the action was "damaging for the international commerce and creates further headwinds."

"It is my opinion there are fields where we should challenge Chinese policies, but there are also significant chances to sell into Chinese markets, including financial services and other areas of the economy. We've got to get that equilibrium appropriate."

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

Health Service Drug Costs and Funding

Reeves also acknowledged that the price the NHS spends on drugs could increase as a consequence of current talks with the Trump administration and its drugs companies, in return for lower tariffs and funding.

Some of the biggest global drug companies have said lately that they are either halting or canceling projects in the UK, with several blaming the insufficient payments they are getting.

Last month, the government science advisor said the cost the health service pays for medicines would have to increase to halt companies and pharmaceutical investment leaving the United Kingdom.

Reeves told media: "We have seen because of the pricing regime, that clinical trials, innovative medicines have not been provided in the United Kingdom in the way that they are in other European countries."

"The objective is to make sure that patients receiving care from the National Health Service are able to receive the best life-saving drugs in the world. And so we are looking at all of that, and... looking to secure additional capital into Britain."