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Treasury head Reeves has stated she is preparing "targeted measures to tackle cost of living pressures" in next month's financial statement.

Speaking to media outlets, she stated that reducing inflation is a collective duty of both the administration and the central bank.

The United Kingdom's price growth is expected to be the highest among the Group of Seven industrialized countries this year and next.

Possible Energy Cost Measures

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

A further possibility is to cut some of the regulatory levies currently added to household expenses.

Budgetary Limitations and Analyst Expectations

The government will receive the latest draft from the official forecaster, the OBR, on Monday, which will reveal how much room there is for these actions.

The view from most economists is that Reeves will have to announce tax rises or budget cuts in order to adhere to her voluntary borrowing rules.

Earlier on Thursday, analysis indicated there was a twenty-two billion pound shortfall for the chancellor to address, which is at the lower end of expectations.

"There's a shared job between the central bank and the administration to further reduce some of the sources of price increases," the Chancellor told the BBC in the US capital, at the conferences of the IMF and global financial institution.

Tax Pledges and International Concerns

While a great deal of the focus has been on expected tax rises, the Treasury chief said the latest figures from the OBR had not changed her commitment to manifesto promises not to raise rates on earnings tax, sales tax or National Insurance.

She attributed an "unpredictable global environment" with growing international and trade issues for the fiscal tax moves, probably to be directed on those "wealthiest."

Global Economic Tensions

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

Recent statement by Chinese authorities to increase trade restrictions on rare earths and other resources that are key for advanced tech production led American leader the US President to suggest an extra 100% import tax on imports from China, raising the risk of an full-scale commercial conflict between the two economic giants.

The US Treasury Secretary labeled China's action "commercial pressure" and "a international production power grab."

Asked about considering the American proposal to join its dispute with China, Reeves said she was "extremely troubled" by Chinese measures and called on the Beijing authorities "to avoid restrictions and restrict access."

She said the decision was "damaging for the international commerce and generates further obstacles."

"In my view there are fields where we should challenge Chinese policies, 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 maintain that balance right."

The Treasury chief also confirmed she was collaborating with international partners "on our own critical minerals approach, so that we are more independent."

NHS Drug Costs and Investment

The Chancellor also admitted that the price the National Health Service pays for medicines could increase as a result of ongoing negotiations with the Trump administration and its pharmaceutical firms, in return for lower tariffs and capital.

A number of the biggest global pharmaceutical manufacturers have said recently that they are either delaying or abandoning projects in the United Kingdom, with some attributing the insufficient payments they are obtaining.

Last month, the Science Minister said the cost the health service pays for medicines would need to increase to halt firms and drug research funding departing from the UK.

Reeves informed media: "It has been observed because of the payment system, that drug testing, new drugs have not been available in the United Kingdom in the manner that they are in other continental states."

"We want to make sure that patients receiving treatment from the NHS are can access the best critical drugs in the world. And so we are examining these issues, and... aiming to attract more capital into Britain."