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

In comments to media outlets, she noted that curbing inflation is a joint duty of both the administration and the Bank of England.

The United Kingdom's inflation rate is projected to be the highest among the G7 developed nations this calendar year and next.

Potential Utility Cost Measures

Sources suggest the government could take action to reduce utility costs, for instance by reducing the current 5% level of VAT applied on energy.

Another option is to lower some of the government charges presently included in bills.

Fiscal Limitations and Analyst Predictions

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

The view from most experts is that the Chancellor will have to declare higher taxes or budget cuts in order to fulfill her declared borrowing rules.

Earlier on the same day, estimates showed there was a £22bn deficit for the chancellor to fill, which is at the more modest range of expectations.

"It is a joint job between the Bank of England and the administration to continue tackling some of the causes of inflation," Reeves informed reporters in Washington, at the conferences of the IMF and World Bank.

Tax Commitments and International Concerns

While much of the attention has been on likely tax rises, the Treasury chief said the most recent data from the fiscal watchdog had not altered her commitment to manifesto promises not to raise rates on income tax, VAT or National Insurance.

She attributed an "unpredictable world" with increasing international and trade tensions for the Budget revenue measures, probably to be targeted on those "wealthiest."

International Economic Disputes

Addressing concerns about the United Kingdom's commercial links with the Asian nation she said: "The UK's national security invariably take priority."

Last week's announcement by China to strengthen trade restrictions on critical minerals and other materials that are key for high-technology production led American leader Donald Trump to threaten an extra 100% import tax on imports from China, raising the possibility of an all-out trade war between the two global powers.

The American finance chief labeled the Chinese action "commercial pressure" and "a global supply chain control attempt."

Inquired about accepting the US offer to participate in its battle with the Asian nation, Reeves said she was "deeply worried" by China's measures and encouraged the Chinese government "to avoid restrictions and restrict access."

She said the decision was "damaging for the international commerce and creates additional headwinds."

"It is my opinion there are areas where we need to confront Chinese policies, but there are also important opportunities to export to China's economy, including financial services and other areas of the economy. We've got to achieve that balance correct."

The chancellor also stated she was cooperating with other major economies "regarding our own critical minerals plan, so that we are more independent."

NHS Drug Pricing and Investment

The Chancellor also recognized that the cost the National Health Service pays for pharmaceuticals could rise as a result of current discussions with the US government and its drugs companies, in return for reduced taxes and investment.

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

Last month, the government science advisor said the price the health service spends on medicines would need to rise to prevent businesses and pharmaceutical investment leaving the United Kingdom.

Reeves told media: "We have seen as a result of the payment system, that drug testing, innovative medicines have not been offered in the UK in the way that they are in other European countries."

"The objective is to guarantee that individuals receiving care from the National Health Service are able to obtain the finest life-saving treatments in the world. And so we are looking at these issues, and... seeking to obtain more investment into Britain."