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Treasury head Rachel Reeves has revealed she is preparing "targeted action to deal with cost of living pressures" in the forthcoming financial statement.

Speaking to media outlets, she noted that lowering price rises is a collective task of both the administration and the Bank of England.

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

Possible Energy Bill Measures

It is understood the government could take action to bring down energy bills, for instance by cutting the current 5% rate of value-added tax charged on energy supplies.

An additional option is to lower some of the government charges currently added to bills.

Budgetary Limitations and Analyst Predictions

The administration will receive the next draft from the official forecaster, the Office for Budget Responsibility, on Monday, which will show how much scope there is for such measures.

The consensus from the majority of economists is that Reeves will have to declare tax increases or budget cuts in order to fulfill her voluntary debt limits.

Previously on the same day, estimates showed there was a £22 billion deficit for the chancellor to resolve, which is at the more modest range of projections.

"It is a collective task between the Bank of England and the government to continue tackling some of the sources of inflation," Reeves informed the BBC in Washington, at the conferences of the International Monetary Fund and global financial institution.

Revenue Pledges and Global Issues

While a great deal of the attention has been on likely tax rises, the chancellor said the latest figures from the fiscal watchdog had not altered her vow to election pledges not to raise rates on income tax, sales tax or National Insurance.

She attributed an "unpredictable global environment" with rising international and trade concerns for the fiscal tax moves, probably to be directed on those "with the broadest shoulders."

Global Economic Disputes

Commenting on concerns about the UK's economic relations with the Asian nation she said: "Our security interests always come first."

Last week's statement by China to tighten export controls on rare earths and other resources that are crucial for advanced tech manufacturing led American leader Donald Trump to suggest an additional 100% tariff on goods from the Asian country, increasing the possibility of an full-scale trade war between the two global powers.

The US Treasury Secretary described the Chinese decision "economic coercion" and "a international production power grab."

Asked about accepting the American proposal to participate in its battle with China, Reeves said she was "deeply worried" by Chinese actions and encouraged the Chinese government "to avoid restrictions and limit trade."

She said the move was "damaging for the world economy and causes additional headwinds."

"I believe there are sectors where we must challenge Chinese policies, but there are also significant 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 Treasury chief also stated she was cooperating with other major economies "regarding our own critical minerals plan, so that we are more independent."

NHS Medicine Costs and Funding

The Chancellor also recognized that the cost the NHS spends on medicines could increase as a result of current discussions with the Trump administration and its drugs companies, in exchange for reduced taxes and funding.

A number of the world's largest pharmaceutical manufacturers have said lately that they are either pausing or scrapping operations in the UK, with several attributing the insufficient payments they are obtaining.

Last month, the Science Minister said the price the health service pays for drugs would have to go up to stop firms and pharmaceutical investment leaving the UK.

The Chancellor stated to media: "We have seen as a result of the payment system, that drug testing, new drugs have not been available in the UK in the manner that they are in other continental states."

"We want to make sure that people receiving treatment from the NHS are able to receive the finest life-saving treatments in the globe. And so we are looking at these issues, and... looking to obtain more funding into the UK."