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Chancellor Reeves has stated she is preparing "specific measures to deal with cost of living pressures" in next month's financial statement.

In comments to media outlets, she stated that reducing price rises is a shared task of both the government and the Bank of England.

The UK's price growth is projected to be the most elevated among the G7 developed nations this year and next.

Potential Utility Cost Interventions

It is understood the administration could intervene to lower energy bills, for instance by slashing the current 5% rate of value-added tax charged on energy.

A further approach is to cut some of the government charges currently added to bills.

Budgetary Constraints and Analyst Predictions

The government will obtain the next assessment from the official forecaster, the Office for Budget Responsibility, on the start of the week, which will clarify how much room there is for such actions.

The view from most economists is that Reeves will have to announce tax increases or spending cuts in order to fulfill her declared debt limits.

Previously on Thursday, estimates indicated there was a £22 billion gap for the chancellor to fill, which is at the lower end of forecasts.

"It is a collective responsibility between the central bank and the administration to further reduce some of the sources of inflation," Reeves informed the BBC in the US capital, at the yearly gatherings of the IMF and global financial institution.

Tax Pledges and International Concerns

While much of the attention has been on probable tax rises, the chancellor said the most recent information from the OBR had not altered her pledge to election pledges not to raise rates on income tax, VAT or social security contributions.

She attributed an "uncertain world" with growing international and trade issues for the Budget revenue measures, probably to be focused on those "most able to pay."

International Economic Tensions

Addressing concerns about the UK's commercial links with the Asian nation she said: "The UK's security interests invariably are paramount."

Last week's statement by Chinese authorities to strengthen export controls on rare earths and other resources that are crucial for advanced tech production led US President the US President to threaten an extra 100% tariff on imports from China, increasing the risk of an full-scale commercial conflict between the two largest economies.

The US Treasury Secretary labeled the Chinese decision "economic coercion" and "a global supply chain control attempt."

Questioned on considering the US offer to join its dispute with China, the Chancellor said she was "extremely troubled" by China's actions and urged the Chinese government "not to put up barriers and limit trade."

She said the move was "damaging for the international commerce and generates additional obstacles."

"In my view there are sectors where we must confront China, but there are also important opportunities to sell into Chinese markets, including financial services and other sectors of the economic system. We've got to get that equilibrium right."

The chancellor also stated she was working with international partners "on our own critical minerals plan, so that we are reduced dependence."

NHS Drug Costs and Investment

The Chancellor also admitted that the cost the National Health Service spends on medicines could increase as a consequence of current talks with the US government and its pharmaceutical firms, in return for lower tariffs and funding.

A number of the world's largest pharmaceutical manufacturers have said lately that they are either pausing or canceling projects in the United Kingdom, with several blaming the insufficient payments they are getting.

Last month, the Science Minister said the price the NHS spends on medicines would have to increase to prevent companies and pharmaceutical investment leaving the United Kingdom.

The Chancellor told the BBC: "We have seen because of the pricing regime, that drug testing, innovative medicines have not been available in the UK in the manner that they are in other European countries."

"We want to make sure that people receiving treatment from the National Health Service are able to obtain the finest life-saving drugs in the world. And so we are looking at these issues, and... seeking to obtain increased funding into the UK."