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Chancellor Rachel Reeves has revealed she is planning "focused measures to tackle cost of living pressures" in the upcoming financial statement.

Speaking to media outlets, she noted that reducing inflation is a shared responsibility of both the government and the Bank of England.

The UK's inflation rate is expected to be the most elevated among the Group of Seven advanced economies this calendar year and the following year.

Potential Utility Bill Interventions

Sources suggest the government could intervene to lower energy bills, for instance by reducing the present 5% rate of VAT charged on energy.

An additional approach is to cut some of the government charges presently included in bills.

Budgetary Constraints and Expert Expectations

The government will receive the latest report from the official forecaster, the Office for Budget Responsibility, on the start of the week, which will reveal how much space there is for such actions.

The view from the majority of analysts is that Reeves will have to declare higher taxes or spending cuts in order to adhere to her self-imposed borrowing rules.

Earlier on Thursday, estimates suggested there was a £22bn deficit for the Treasury chief to fill, which is at the lower end of forecasts.

"It is a shared job between the central bank and the administration to further reduce some of the sources of inflation," Reeves told reporters in the US capital, at the annual meetings of the IMF and World Bank.

Revenue Commitments and International Issues

While a great deal of the focus has been on expected tax rises, the Treasury chief said the most recent information from the OBR had not altered her commitment to election pledges not to increase tax levels on income tax, sales tax or National Insurance.

She blamed an "uncertain world" with increasing international and trade tensions for the Budget revenue measures, likely to be focused on those "most able to pay."

Global Trade Disputes

Addressing concerns about the UK's economic relations with the Asian nation she said: "The UK's national security always take priority."

Last week's announcement by Chinese authorities to strengthen trade restrictions on rare earths and other materials that are essential for advanced tech production led American leader Donald Trump to suggest an additional 100% import tax on goods from the Asian country, raising the risk of an full-scale trade war between the two largest economies.

The American finance chief called the Chinese action "commercial pressure" and "a international production control attempt."

Questioned on accepting the American proposal to join its battle with the Asian nation, Reeves said she was "extremely troubled" by Chinese measures and encouraged the Chinese government "to avoid restrictions and restrict access."

She said the action was "harmful for the global economy and creates further headwinds."

"I believe there are areas where we must challenge China, but there are also valuable prospects to sell into Chinese markets, including banking sector and other sectors of the economy. We've got to maintain that equilibrium correct."

The chancellor also affirmed she was working with G7 counterparts "on our own essential resources plan, so that we are less reliant."

NHS Medicine Pricing and Funding

The Chancellor also acknowledged that the cost the National Health Service spends on pharmaceuticals could go up as a consequence of ongoing discussions with the Trump administration and its pharmaceutical firms, in return for lower tariffs and funding.

A number of the world's largest drug companies have said recently that they are either delaying or canceling investments in the United Kingdom, with several blaming the modest returns they are receiving.

Last month, the government science advisor said the cost the NHS spends on medicines would must go up to prevent businesses and pharmaceutical investment departing from the United Kingdom.

The Chancellor informed media: "We have seen as a result of the payment system, that medical research, new drugs have not been provided in the United Kingdom in the way that they are in other European countries."

"Our aim is to guarantee that individuals getting care from the NHS are can receive the finest critical medicines in the globe. And so we are examining this situation, and... looking to obtain additional investment into Britain."