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Chancellor Rachel Reeves has announced she is preparing "specific steps to deal with cost of living pressures" in the forthcoming financial statement.

Speaking to the BBC, she noted that curbing price rises is a shared duty of both the administration and the central bank.

The United Kingdom's price growth is projected to be the highest among the G7 developed nations this year and next.

Potential Energy Bill Measures

Reports indicate the government could intervene to bring down energy bills, for example by slashing the present 5% level of VAT applied on energy supplies.

An additional approach is to lower some of the regulatory levies presently added to household expenses.

Fiscal Constraints and Expert Expectations

The administration will receive the latest draft from the independent fiscal watchdog, the OBR, on Monday, which will clarify how much space there is for such actions.

The consensus from most experts is that the Chancellor will have to declare higher taxes or expenditure reductions in order to meet her declared debt limits.

Earlier on Thursday, estimates showed there was a £22bn shortfall for the Treasury chief to address, which is at the more modest range of projections.

"There's a shared job between the Bank of England and the government to continue tackling some of the sources of price increases," the Chancellor informed the BBC in the US capital, at the yearly gatherings of the IMF and global financial institution.

Tax Pledges and International Issues

While a great deal of the attention has been on probable tax rises, the chancellor said the latest figures from the OBR had not changed her pledge to campaign commitments not to increase tax levels on earnings tax, sales tax or social security contributions.

She attributed an "uncertain world" with increasing international and trade issues for the Budget revenue measures, probably to be focused on those "with the broadest shoulders."

International Economic Tensions

Addressing concerns about the United Kingdom's trade ties with China she said: "Our national security always take priority."

Recent announcement by Chinese authorities to tighten export controls on rare earths and other resources that are key for high-technology manufacturing led US President Donald Trump to threaten an additional 100% tariff on goods from the Asian country, raising the possibility of an full-scale commercial conflict between the two largest economies.

The American finance chief labeled the Chinese decision "commercial pressure" and "a global supply chain power grab."

Inquired about considering the American proposal to participate in its conflict with the Asian nation, Reeves said she was "deeply worried" by China's actions and urged the Beijing authorities "to avoid restrictions and limit trade."

She said the move was "harmful for the global economy and generates additional obstacles."

"It is my opinion there are sectors where we must confront Chinese policies, but there are also important chances to sell into Chinese markets, including banking sector and other areas of the economy. We've got to maintain that equilibrium appropriate."

The chancellor also affirmed she was cooperating with other major economies "regarding our own essential resources approach, so that we are less reliant."

Health Service Medicine Pricing and Investment

Reeves also recognized that the cost the NHS spends on medicines could rise as a consequence of current talks with the Trump administration and its pharmaceutical firms, in exchange for reduced taxes and investment.

Some of the world's largest drug companies have said in recent statements that they are either halting or scrapping investments in the United Kingdom, with several attributing the low prices they are obtaining.

Last month, the Science Minister said the price the NHS spends on drugs would need to rise to halt companies and drug research funding leaving the United Kingdom.

The Chancellor told media: "It has been observed as a result of the payment system, that medical research, recent pharmaceuticals have not been offered in the United Kingdom in the manner that they are in other EU nations."

"The objective is to guarantee that patients getting care from the NHS are can access the top essential medicines in the world. And so we are reviewing these issues, and... aiming to secure more capital into Britain."