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

In comments to media outlets, she emphasized that lowering price rises is a collective duty of both the administration and the Bank of England.

The United Kingdom's inflation rate is forecast to be the highest among the Group of Seven industrialized countries this year and next.

Possible Utility Bill Measures

Reports indicate the government could intervene to reduce energy bills, such as by cutting the present 5% level of VAT charged on energy.

Another option is to cut some of the government charges currently included in bills.

Fiscal Constraints and Expert Predictions

The administration will receive the latest assessment from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will show how much space there is for these measures.

The consensus from the majority of economists is that Reeves will have to announce tax rises or spending cuts in order to adhere to her voluntary borrowing rules.

Previously on Thursday, analysis indicated there was a £22 billion deficit for the chancellor to address, which is at the lower end of expectations.

"It is a collective responsibility between the central bank and the administration to continue tackling some of the drivers of inflation," the Chancellor stated to reporters in Washington, at the conferences of the International Monetary Fund and World Bank.

Tax Pledges and International Issues

While much of the focus has been on expected tax rises, the chancellor said the most recent figures from the fiscal watchdog had not changed her pledge to election pledges not to increase tax levels on income tax, sales tax or National Insurance.

She attributed an "unpredictable world" with rising geopolitical and trade concerns for the Budget revenue measures, likely to be focused on those "wealthiest."

International Economic Tensions

Addressing worries about the UK's trade ties with China she said: "The UK's national security always come first."

Last week's announcement by Chinese authorities to tighten export controls on critical minerals and other materials that are essential for high-technology production led American leader the US President to propose an additional 100% tariff on goods from China, increasing the possibility of an full-scale trade war between the two economic giants.

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

Questioned on accepting the US offer to participate in its conflict with the Asian nation, Reeves said she was "very concerned" by Chinese measures and called on the Beijing authorities "not to put up barriers and limit trade."

She said the decision was "damaging for the global economy and generates further headwinds."

"I believe there are areas where we should confront Chinese policies, but there are also valuable chances to export to China's economy, including banking sector and other areas of the economic system. We've got to achieve that balance appropriate."

The Treasury chief also affirmed she was collaborating with international partners "regarding our own essential resources strategy, so that we are reduced dependence."

NHS Drug Pricing and Investment

Reeves also recognized that the price the NHS pays for drugs could rise as a consequence of current negotiations with the US government and its drugs companies, in exchange for reduced taxes and capital.

Some of the biggest global drug companies have said recently that they are either halting or scrapping operations in the United Kingdom, with several attributing the modest returns they are obtaining.

Last month, the government science advisor said the price the health service spends on medicines would must go up to prevent companies and drug research funding leaving the UK.

Reeves informed media: "We have seen due to the cost structure, that drug testing, recent pharmaceuticals have not been offered in the United Kingdom in the way that they are in other EU nations."

"Our aim is to ensure that individuals receiving treatment from the National Health Service are can receive the finest life-saving medicines in the world. And so we are looking at all of that, and... aiming to obtain increased capital into Britain."