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

During an interview with media outlets, she stated that lowering inflation is a joint task of both the government and the central bank.

The UK's price growth is projected to be the highest among the Group of Seven industrialized countries this calendar year and next.

Potential Energy Cost Measures

Reports indicate the administration could take action to reduce energy bills, such as by cutting the current 5% level of VAT charged on energy supplies.

Another approach is to cut some of the regulatory levies presently added to household expenses.

Fiscal Limitations and Expert Expectations

The administration will receive the latest report from the official forecaster, the OBR, on Monday, which will show how much scope there is for these actions.

The view from most analysts is that the Chancellor will have to announce tax increases or budget cuts in order to fulfill her declared debt limits.

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

"There's a shared responsibility between the Bank of England and the government to further reduce some of the drivers of price increases," the Chancellor stated to the BBC in Washington, at the annual meetings of the IMF and global financial institution.

Revenue Commitments and International Issues

While much of the attention has been on probable tax rises, the Treasury chief said the most recent figures from the OBR had not altered her commitment to manifesto promises not to increase tax levels on earnings tax, sales tax or social security contributions.

She blamed an "unpredictable world" with increasing international and commercial concerns for the fiscal tax moves, likely to be focused on those "with the broadest shoulders."

International Economic Tensions

Referring to worries about the United Kingdom's commercial links with China she said: "The UK's security interests always take priority."

Recent announcement by China to increase export controls on critical minerals and other resources that are key for high-technology manufacturing led American leader Donald Trump to propose an additional 100% import tax on goods from the Asian country, raising the possibility of an full-scale commercial conflict between the two global powers.

The US Treasury Secretary described China's action "economic coercion" and "a global supply chain control attempt."

Asked about accepting the US offer to join its conflict with China, Reeves said she was "extremely troubled" by China's actions and encouraged the Chinese government "not to put up barriers and restrict access."

She said the move was "harmful for the global economy and creates additional headwinds."

"In my view there are areas where we must challenge China, but there are also significant chances to sell into China's economy, including banking sector and other sectors of the economic system. We've got to get that balance right."

The Treasury chief also stated she was working with G7 counterparts "on our own essential resources approach, so that we are reduced dependence."

NHS Medicine Pricing and Investment

Reeves also recognized that the cost the National Health Service pays for drugs could increase as a result of current negotiations with the US government and its pharmaceutical firms, in return for lower tariffs and investment.

Some of the biggest global drug companies have said lately that they are either delaying or abandoning operations in the UK, with several blaming the insufficient payments they are obtaining.

Last month, the government science advisor said the cost the NHS pays for medicines would have to increase to halt businesses and drug research funding departing from the United Kingdom.

Reeves told the BBC: "It has been observed due to the payment system, that drug testing, recent pharmaceuticals have not been provided in the United Kingdom in the manner that they are in other European countries."

"Our aim is to make sure that people receiving treatment from the National Health Service are able to obtain the finest critical drugs in the world. And so we are reviewing all of that, and... looking to attract additional funding into Britain."