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Chancellor Rachel Reeves has revealed she is preparing "targeted steps to deal with cost of living challenges" in next month's financial statement.

In comments to the BBC, she noted that reducing price rises is a collective duty of both the administration and the central bank.

The UK's price growth is projected to be the most elevated among the G7 advanced economies this calendar year and the following year.

Possible Utility Bill Measures

Reports indicate the administration could intervene to bring down utility costs, for instance by slashing the present 5% level of value-added tax applied on energy supplies.

An additional approach is to lower some of the government charges presently added to household expenses.

Budgetary Limitations and Expert Expectations

The administration will obtain the next report from the official forecaster, the OBR, on the start of the week, which will reveal how much scope there is for such measures.

The view from most analysts is that the Chancellor will have to introduce tax increases or expenditure reductions in order to fulfill her voluntary fiscal targets.

Previously on the same day, calculations suggested there was a £22 billion shortfall for the chancellor to fill, which is at the lower end of expectations.

"It is a shared job between the central bank and the government to bear down further on some of the causes of price increases," Reeves told reporters in the US capital, at the yearly gatherings of the International Monetary Fund and World Bank.

Tax Commitments and International Concerns

While a great deal of the attention has been on probable tax increases, the Treasury chief said the latest information from the fiscal watchdog had not altered her pledge to manifesto promises not to increase rates on earnings tax, VAT or social security contributions.

She blamed an "uncertain world" with growing international and commercial tensions for the fiscal tax moves, probably to be focused on those "with the broadest shoulders."

International Economic Disputes

Referring to concerns about the UK's economic relations with the Asian nation she said: "Our national security invariably are paramount."

Last week's statement by China to tighten trade restrictions on critical minerals and other resources that are essential for advanced tech production led American leader Donald Trump to propose an extra 100% import tax on goods from China, raising the prospect of an full-scale commercial conflict between the two global powers.

The American finance chief described the Chinese move "commercial pressure" and "a global supply chain control attempt."

Questioned on considering the US offer to join its battle with the Asian nation, Reeves said she was "deeply worried" by China's actions and called on the Chinese government "not to put up barriers and restrict access."

She said the move was "harmful for the world economy and causes further challenges."

"In my view there are fields where we must address China, but there are also valuable opportunities to sell into China's economy, including banking sector and other areas of the economic system. We've got to get that balance correct."

The chancellor also affirmed she was cooperating with G7 counterparts "regarding our own essential resources plan, so that we are more independent."

Health Service Drug Costs and Funding

The Chancellor also recognized that the cost the NHS spends on pharmaceuticals could go up as a result of ongoing discussions with the US government and its drugs companies, in return for lower tariffs and investment.

Some of the biggest global pharmaceutical manufacturers have said lately that they are either halting or canceling projects in the UK, with some attributing the modest returns they are receiving.

Recently, the government science advisor said the price the NHS spends on medicines would need to rise to halt firms and drug research funding leaving the UK.

The Chancellor stated to media: "It has been observed because of the pricing regime, that medical research, recent pharmaceuticals have not been available in the UK in the extent that they are in other European countries."

"The objective is to ensure that people receiving care from the NHS are can receive the top critical medicines in the world. And so we are examining all of that, and... seeking to attract more funding into the UK."