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Treasury head Reeves has stated she is planning "targeted action to deal with cost of living challenges" in next month's financial statement.

Speaking to the BBC, she noted that lowering price rises is a shared responsibility of both the government and the Bank of England.

The United Kingdom's price growth is projected to be the highest among the Group of Seven industrialized countries this calendar year and next.

Potential Utility Cost Measures

It is understood the government could take action to bring down utility costs, for instance by reducing the current 5% level of VAT charged on energy supplies.

An additional option is to cut some of the policy costs currently added to household expenses.

Budgetary Constraints and Expert Expectations

The government will receive the next draft from the official forecaster, the OBR, on the start of the week, which will show how much room there is for such measures.

The expectation from most analysts is that the Chancellor will have to announce higher taxes or expenditure reductions in order to adhere to her voluntary fiscal targets.

Earlier on Thursday, calculations showed there was a £22 billion gap for the Treasury chief to fill, which is at the lower end of projections.

"There's a joint task between the Bank of England and the administration to further reduce some of the sources of price increases," the Chancellor told the BBC in the US capital, at the yearly gatherings of the IMF and World Bank.

Revenue Commitments and Global Issues

While much of the attention has been on expected tax rises, the chancellor said the latest information from the fiscal watchdog had not changed her commitment to election pledges not to increase tax levels on earnings tax, VAT or social security contributions.

She blamed an "uncertain global environment" with increasing geopolitical and commercial tensions for the fiscal revenue measures, likely to be targeted on those "with the broadest shoulders."

Global Economic Tensions

Addressing concerns about the United Kingdom's commercial links with China she said: "The UK's national security always are paramount."

Recent announcement by Chinese authorities to strengthen trade restrictions on rare earths and other materials that are key for advanced tech production led US President the US President to suggest an additional 100% tariff on goods from the Asian country, raising the possibility of an all-out commercial conflict between the two global powers.

The American finance chief described China's move "commercial pressure" and "a global supply chain power grab."

Asked about considering the American proposal to participate in its dispute with China, Reeves said she was "deeply worried" by Chinese measures and called on the Chinese government "to avoid restrictions and restrict access."

She said the action was "damaging for the international commerce and creates further headwinds."

"In my view there are fields where we need to challenge China, but there are also important opportunities to sell into Chinese markets, including financial services and other areas of the economy. We've got to maintain that balance right."

The chancellor also stated she was working with G7 counterparts "on our own critical minerals strategy, so that we are more independent."

NHS Drug Pricing and Investment

Reeves also admitted that the cost the National Health Service pays for medicines could go up as a consequence of ongoing discussions with the Trump administration and its pharmaceutical firms, in exchange for lower tariffs and funding.

A number of the world's largest pharmaceutical manufacturers have said lately that they are either halting or canceling investments in the UK, with several blaming the low prices they are obtaining.

Recently, the Science Minister said the cost the NHS spends on medicines would need to go up to prevent businesses and pharmaceutical investment departing from the United Kingdom.

The Chancellor informed media: "We have seen because of the cost structure, that clinical trials, new drugs have not been provided in the United Kingdom in the way that they are in other EU nations."

"The objective is to ensure that people getting care from the National Health Service are able to access the top essential drugs in the globe. And so we are looking at all of that, and... seeking to secure increased funding into Britain."