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Treasury head Reeves has revealed she is planning "targeted action to tackle cost of living pressures" in the forthcoming financial statement.

Speaking to the BBC, she stated that curbing inflation is a collective task of both the government and the central bank.

The UK's inflation rate is forecast to be the most elevated among the G7 advanced economies this year and next.

Possible Energy Cost Measures

It is understood the government could intervene to lower utility costs, for example by cutting the present 5% rate of VAT charged on energy supplies.

A further option is to cut some of the policy costs currently included in bills.

Fiscal Constraints and Analyst Expectations

The administration will obtain the next report from the official forecaster, the Office for Budget Responsibility, on Monday, which will clarify how much scope there is for these measures.

The expectation from the majority of economists is that Reeves will have to introduce tax rises or expenditure reductions in order to adhere to her self-imposed debt limits.

Earlier on the same day, calculations showed there was a £22 billion shortfall for the Treasury chief to resolve, which is at the more modest range of forecasts.

"There's a collective task between the central bank and the government to continue tackling some of the sources of price increases," the Chancellor informed reporters in the US capital, at the annual meetings of the IMF and global financial institution.

Revenue Pledges and International Concerns

While much of the focus has been on expected tax increases, the chancellor said the latest figures from the fiscal watchdog had not changed her vow to campaign commitments not to raise tax levels on earnings tax, VAT or social security contributions.

She attributed an "uncertain global environment" with rising geopolitical and trade issues for the fiscal tax moves, likely to be focused on those "with the broadest shoulders."

International Trade Tensions

Commenting on worries about the UK's trade ties with China she said: "Our national security always are paramount."

Recent declaration by China to strengthen trade restrictions on critical minerals and other materials that are crucial for high-technology production led American leader the US President to propose an further 100% import tax on goods from China, increasing the prospect of an all-out commercial conflict between the two largest economies.

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

Questioned on accepting the American proposal to participate in its battle with China, Reeves said she was "extremely troubled" by Chinese actions and called on the Chinese government "to avoid restrictions and limit trade."

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

"I believe there are areas where we need to confront Chinese policies, but there are also important prospects to trade with China's economy, including banking sector and other sectors of the economic system. We've got to maintain that equilibrium right."

The chancellor also confirmed she was cooperating with other major economies "on our own critical minerals plan, so that we are reduced dependence."

NHS Drug Pricing and Investment

Reeves also recognized that the price the National Health Service spends on medicines could rise as a result of ongoing discussions with the US government and its pharmaceutical firms, in return for lower tariffs and capital.

A number of the world's largest pharmaceutical manufacturers have said in recent statements that they are either pausing or scrapping investments in the United Kingdom, with several blaming the modest returns they are obtaining.

Recently, the government science advisor said the cost the NHS pays for drugs would need to rise to stop companies and drug research funding leaving the UK.

The Chancellor stated to the BBC: "It has been observed due to the payment system, that clinical trials, innovative medicines have not been offered in the United Kingdom in the manner that they are in other continental states."

"The objective is to ensure that patients receiving treatment from the National Health Service are able to receive the finest life-saving drugs in the world. And so we are looking at all of that, and... seeking to attract additional investment into Britain."