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Chancellor Rachel Reeves has revealed she is preparing "specific action to address cost of living pressures" in the forthcoming financial statement.

During an interview with the BBC, she noted that curbing inflation is a joint duty of both the government and the Bank of England.

The UK's inflation rate is projected to be the most elevated among the Group of Seven industrialized countries this calendar year and the following year.

Possible Utility Bill Interventions

It is understood the government could take action to bring down utility costs, for example by reducing the current 5% rate of value-added tax applied on energy.

A further possibility is to cut some of the government charges presently added to household expenses.

Fiscal Limitations and Expert Predictions

The administration will receive the latest draft from the independent fiscal watchdog, the OBR, on Monday, which will clarify how much space there is for such actions.

The consensus from most analysts is that Reeves will have to introduce tax rises or expenditure reductions in order to meet her voluntary borrowing rules.

Earlier on the same day, analysis indicated there was a £22 billion shortfall for the chancellor to address, which is at the more modest range of expectations.

"There's a shared responsibility between the Bank of England and the government to continue tackling some of the sources of inflation," Reeves informed reporters in Washington, at the yearly gatherings of the International Monetary Fund and World Bank.

Tax Commitments and International Issues

While a great deal of the attention has been on likely tax rises, the chancellor said the latest data from the fiscal watchdog had not changed her pledge to election pledges not to raise tax levels on earnings tax, VAT or social security contributions.

She blamed an "unpredictable world" with increasing international and trade issues for the fiscal revenue measures, likely to be directed on those "wealthiest."

Global Trade Disputes

Addressing concerns about the UK's trade ties with the Asian nation she said: "The UK's security interests invariably take priority."

Recent announcement by Chinese authorities to tighten trade restrictions on critical minerals and other resources that are crucial for advanced tech production led American leader the US President to propose an additional 100% import tax on goods from China, increasing the prospect of an all-out commercial conflict between the two economic giants.

The US Treasury Secretary labeled China's move "economic coercion" and "a global supply chain control attempt."

Asked about accepting the US offer to participate in its dispute with the Asian nation, Reeves said she was "extremely troubled" by Chinese actions and encouraged the Beijing authorities "not to put up barriers and restrict access."

She said the move was "harmful for the global economy and creates further challenges."

"In my view there are areas where we need to challenge China, but there are also valuable prospects to export to China's economy, including financial services and other sectors of the economic system. We've got to achieve that equilibrium right."

The chancellor also affirmed she was cooperating with G7 counterparts "on our own critical minerals strategy, so that we are reduced dependence."

NHS Drug Costs and Investment

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

Some of the world's largest pharmaceutical manufacturers have said lately that they are either delaying or scrapping operations in the UK, with some attributing the modest returns they are receiving.

Last month, the government science advisor said the cost the health service spends on drugs would must increase to stop businesses and pharmaceutical investment departing from the UK.

The Chancellor informed media: "We have seen due to the cost structure, that drug testing, innovative medicines have not been available in the United Kingdom in the way that they are in other EU nations."

"The objective is to guarantee that patients getting treatment from the National Health Service are can access the finest essential treatments in the globe. And so we are reviewing these issues, and... aiming to attract more investment into the UK."