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Treasury head Reeves has stated she is preparing "specific steps to deal with cost of living challenges" in the upcoming financial statement.

During an interview with media outlets, she emphasized that lowering price rises is a shared task of both the government and the central bank.

The UK's inflation rate is projected to be the highest among the Group of Seven developed nations this calendar year and the following year.

Possible Utility Cost Measures

It is understood the government could take action to lower energy bills, for example by cutting the current 5% rate of VAT charged on energy.

Another approach is to reduce some of the government charges presently added to bills.

Fiscal Limitations and Expert Predictions

The government will obtain the latest draft from the independent fiscal watchdog, the OBR, on Monday, which will reveal how much scope there is for such actions.

The expectation from the majority of analysts is that the Chancellor will have to announce tax increases or expenditure reductions in order to adhere to her voluntary debt limits.

Previously on Thursday, analysis showed there was a £22bn deficit for the chancellor to address, which is at the more modest range of expectations.

"It is a collective responsibility between the central bank and the government to further reduce some of the causes of price increases," the Chancellor informed reporters in the US capital, at the annual meetings of the IMF and World Bank.

Revenue Commitments and Global Issues

While a great deal of the focus has been on likely tax increases, the chancellor said the most recent figures from the OBR had not changed her commitment to election pledges not to raise rates on income tax, sales tax or National Insurance.

She attributed an "unpredictable global environment" with rising international and trade concerns for the Budget tax moves, probably to be targeted on those "wealthiest."

International Trade Tensions

Referring to apprehensions about the United Kingdom's economic relations with China she said: "Our security interests always take priority."

Last week's announcement by Chinese authorities to tighten trade restrictions on critical minerals and other materials that are essential for high-technology production led American leader the US President to suggest an further 100% tariff on goods from China, increasing the risk of an full-scale commercial conflict between the two largest economies.

The US Treasury Secretary labeled the Chinese action "commercial pressure" and "a international production power grab."

Asked about accepting the American proposal to participate in its dispute with China, the Chancellor said she was "very concerned" by China's actions and called on the Chinese government "to avoid restrictions and limit trade."

She said the decision was "damaging for the global economy and generates further headwinds."

"In my view there are sectors where we should confront China, but there are also valuable opportunities to export to China's economy, including financial services 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 critical minerals plan, so that we are more independent."

Health Service Drug Pricing and Investment

The Chancellor also admitted that the cost the NHS spends on pharmaceuticals could go up as a result of current discussions with the US government and its pharmaceutical firms, in exchange for reduced taxes and investment.

A number of the biggest global drug companies have said recently that they are either pausing or scrapping operations in the UK, with some blaming the low prices they are getting.

Recently, the government science advisor said the cost the health service spends on drugs would must increase to prevent companies and drug research funding leaving the UK.

The Chancellor informed the BBC: "We have seen due to the cost structure, that medical research, new drugs have not been available in the UK in the extent that they are in other continental states."

"The objective is to make sure that patients getting care from the National Health Service are able to obtain the finest life-saving medicines in the globe. And so we are looking at these issues, and... looking to secure additional funding into Britain."