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Treasury head Rachel Reeves has stated she is planning "focused steps to tackle cost of living issues" in the upcoming financial statement.

During an interview with the BBC, she emphasized that lowering inflation is a joint duty of both the government and the Bank of England.

The United Kingdom's price growth is forecast to be the highest among the Group of Seven advanced economies this year and next.

Possible Utility Bill Measures

It is understood the administration could take action to reduce utility costs, for instance by cutting the current 5% rate of VAT applied on energy supplies.

A further option is to reduce some of the policy costs presently included in household expenses.

Fiscal Constraints and Expert Predictions

The government will receive the latest report from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will show how much scope there is for these actions.

The consensus from most analysts is that the Chancellor will have to declare higher taxes or spending cuts in order to meet her voluntary debt limits.

Previously on Thursday, estimates suggested there was a £22 billion gap for the Treasury chief to fill, which is at the lower end of forecasts.

"It is a shared responsibility between the central bank and the administration to bear down further on some of the causes of inflation," the Chancellor stated to the BBC in Washington, at the conferences of the International Monetary Fund and global financial institution.

Revenue Commitments and International Concerns

While a great deal of the attention has been on probable tax increases, the Treasury chief said the most recent data from the OBR had not altered her vow to election pledges not to increase rates on income tax, sales tax or social security contributions.

She attributed an "unpredictable global environment" with growing geopolitical and trade concerns for the fiscal revenue measures, probably to be directed on those "most able to pay."

Global Economic Tensions

Referring to concerns about the UK's trade ties with the Asian nation she said: "Our national security always come first."

Last week's declaration by China to tighten export controls on rare earths and other resources that are key for high-technology manufacturing led US President the US President to threaten an further 100% tariff on goods from the Asian country, increasing the possibility of an full-scale trade war between the two global powers.

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

Inquired about accepting the US offer to participate in its conflict with the Asian nation, Reeves said she was "deeply worried" by Chinese actions and urged the Chinese government "not to put up barriers and restrict access."

She said the action was "damaging for the world economy and creates additional obstacles."

"In my view there are fields where we need to confront China, but there are also significant opportunities to export to Chinese markets, including banking sector and other sectors of the economy. We've got to achieve that equilibrium right."

The Treasury chief also affirmed she was working with other major economies "regarding our own essential resources plan, so that we are less reliant."

NHS Drug Costs and Investment

Reeves also recognized that the price the NHS spends on drugs could go up as a result of current negotiations with the Trump administration and its pharmaceutical firms, in exchange for lower tariffs and capital.

Some of the biggest global drug companies have said lately that they are either delaying or abandoning investments in the UK, with some blaming the modest returns they are getting.

Last month, the government science advisor said the price the NHS spends on drugs would have to rise to prevent companies and pharmaceutical investment departing from the United Kingdom.

The Chancellor stated to the BBC: "We have seen because of the cost structure, that drug testing, recent pharmaceuticals have not been available in the United Kingdom in the extent that they are in other European countries."

"Our aim is to ensure that individuals getting care from the National Health Service are can receive the top essential drugs in the globe. And so we are examining these issues, and... looking to obtain increased funding into the UK."