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Chancellor Rachel Reeves has announced she is preparing "focused measures to tackle cost of living pressures" in the upcoming financial statement.

During an interview with the BBC, she stated that curbing inflation is a shared task of both the government and the Bank of England.

The UK's inflation rate is expected to be the highest among the G7 industrialized countries this calendar year and next.

Potential Energy Cost Interventions

It is understood the administration could intervene to bring down energy bills, for example by reducing the present 5% level of VAT charged on energy supplies.

Another possibility is to lower some of the government charges currently included in bills.

Fiscal Limitations and Analyst Predictions

The government will receive the next report from the official forecaster, the OBR, on Monday, which will clarify how much scope there is for these actions.

The view from the majority of economists is that Reeves will have to declare tax rises or expenditure reductions in order to adhere to her declared borrowing rules.

Earlier on the same day, estimates showed there was a £22 billion gap for the Treasury chief to resolve, which is at the more modest range of forecasts.

"It is a joint task between the central bank and the government to bear down further on some of the causes of price increases," Reeves told the BBC in the US capital, at the conferences of the International Monetary Fund and global financial institution.

Tax Commitments and International Issues

While much of the focus has been on likely tax increases, the chancellor said the most recent figures from the OBR had not altered her commitment to manifesto promises not to raise tax levels on income tax, VAT or National Insurance.

She blamed an "uncertain global environment" with growing geopolitical and commercial issues for the fiscal revenue measures, probably to be focused on those "most able to pay."

International Trade Tensions

Commenting on apprehensions about the UK's commercial links with the Asian nation she said: "The UK's security interests invariably take priority."

Recent declaration by Chinese authorities to tighten trade restrictions on rare earths and other resources that are essential for high-technology production led US President Donald Trump to threaten an further 100% tariff on goods from China, increasing the prospect of an full-scale commercial conflict between the two global powers.

The US Treasury Secretary labeled the Chinese move "commercial pressure" and "a international production control attempt."

Asked about accepting the American proposal to join its conflict with the Asian nation, the Chancellor said she was "very concerned" by Chinese measures and called on the Chinese government "not to put up barriers and limit trade."

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

"In my view there are sectors where we need to address Chinese policies, but there are also important prospects to sell into Chinese markets, including banking sector and other sectors of the economy. We've got to maintain that equilibrium correct."

The Treasury chief also stated she was collaborating with other major economies "regarding our own critical minerals strategy, so that we are more independent."

Health Service Drug Costs and Funding

The Chancellor also admitted that the price the National Health Service pays for drugs could rise as a consequence of current discussions with the US government and its drugs companies, in return for reduced taxes and funding.

Some of the world's largest drug companies have said lately that they are either halting or scrapping operations in the United Kingdom, with some attributing the modest returns they are obtaining.

Last month, the government science advisor said the price the NHS spends on medicines would have to rise to stop companies and pharmaceutical investment departing from the UK.

The Chancellor informed the BBC: "We have seen as a result of the cost structure, that drug testing, new drugs have not been available in the UK in the way that they are in other continental states."

"Our aim is to make sure that individuals getting care from the National Health Service are able to receive the best life-saving drugs in the globe. And so we are looking at all of that, and... seeking to attract increased investment into the UK."