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Chancellor Reeves has revealed she is planning "specific action to deal with cost of living issues" in next month's financial statement.

Speaking to the BBC, she noted that lowering price rises is a collective duty of both the government and the central bank.

The UK's price growth is projected to be the highest among the Group of Seven advanced economies this calendar year and the following year.

Possible Energy Bill Measures

It is understood the administration could take action to bring down utility costs, for instance by cutting the present 5% level of VAT charged on energy.

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

Fiscal Limitations and Expert Predictions

The government will receive the next draft from the official forecaster, the Office for Budget Responsibility, on the start of the week, which will reveal how much scope there is for such measures.

The expectation from the majority of analysts is that the Chancellor will have to introduce tax rises or budget cuts in order to adhere to her self-imposed debt limits.

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

"There's a collective task between the central bank and the administration to continue tackling some of the causes of price increases," Reeves told the BBC in Washington, at the annual meetings of the IMF and global financial institution.

Tax Pledges and International Concerns

While much of the attention has been on expected tax increases, the Treasury chief said the latest data from the OBR had not altered her vow to campaign commitments not to increase rates on earnings tax, VAT or social security contributions.

She blamed an "uncertain world" with growing international and commercial concerns for the fiscal tax moves, probably to be focused on those "most able to pay."

International Trade Disputes

Addressing apprehensions about the United Kingdom's economic relations with the Asian nation she said: "Our national security always take priority."

Last week's statement by China to strengthen export controls on critical minerals and other materials that are key for advanced tech manufacturing led American leader Donald Trump to suggest an additional 100% import tax on goods from China, raising the risk of an full-scale commercial conflict between the two economic giants.

The American finance chief called China's decision "economic coercion" and "a international production power grab."

Asked about accepting the American proposal to participate in its dispute with the Asian nation, the Chancellor said she was "very concerned" by Chinese measures and called on the Chinese government "to avoid restrictions and restrict access."

She said the decision was "damaging for the international commerce and generates additional challenges."

"In my view there are sectors where we should confront China, but there are also significant chances to sell into China's economy, including financial services and other sectors of the economy. We've got to maintain that equilibrium right."

The chancellor also stated she was cooperating with international partners "regarding our own essential resources approach, so that we are more independent."

NHS Drug Costs and Funding

Reeves also recognized that the cost the National Health Service spends on drugs could increase as a consequence 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 pausing or scrapping investments in the UK, with some blaming the insufficient payments they are receiving.

Recently, the Science Minister said the cost the health service pays for medicines would must increase to stop businesses and drug research funding leaving the United Kingdom.

The Chancellor told the BBC: "We have seen due to the pricing regime, that clinical trials, innovative medicines have not been available in the UK in the way that they are in other EU nations."

"We want to ensure that people getting treatment from the NHS are can obtain the top life-saving drugs in the globe. And so we are reviewing these issues, and... seeking to obtain increased investment into Britain."