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Treasury head Reeves has stated she is preparing "focused steps to deal with cost of living challenges" in next month's financial statement.

Speaking to the BBC, she noted that reducing price rises is a joint task of both the government and the Bank of England.

The United Kingdom's price growth is forecast to be the highest among the G7 industrialized countries this year and next.

Potential Energy Bill Interventions

Reports indicate the government could take action to reduce energy bills, such as by slashing the present 5% rate of VAT charged on energy supplies.

Another option is to cut some of the regulatory levies currently included in household expenses.

Fiscal Constraints and Expert Expectations

The government will obtain the latest assessment from the official forecaster, the Office for Budget Responsibility, on the start of the week, which will reveal how much room there is for these actions.

The view from the majority of experts is that the Chancellor will have to introduce higher taxes or expenditure reductions in order to adhere to her self-imposed debt limits.

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

"There's a collective job between the central bank and the administration to further reduce some of the sources of inflation," Reeves stated to reporters in the US capital, at the annual meetings of the International Monetary Fund and World Bank.

Tax Pledges and Global Issues

While a great deal of the attention has been on likely tax rises, the Treasury chief said the latest data from the OBR had not altered her vow to manifesto promises not to raise rates on earnings tax, sales tax or social security contributions.

She attributed an "unpredictable world" with rising geopolitical and trade tensions for the fiscal revenue measures, probably to be directed on those "most able to pay."

Global Economic Tensions

Commenting on apprehensions about the UK's trade ties with the Asian nation she said: "The UK's national security always are paramount."

Recent declaration by Chinese authorities to strengthen export controls on rare earths and other materials that are essential for high-technology production led US President Donald Trump to suggest an further 100% import tax on imports from the Asian country, raising the risk of an full-scale trade war between the two global powers.

The US Treasury Secretary labeled China's move "economic coercion" and "a international production control attempt."

Asked about accepting the American proposal to participate in its dispute with China, Reeves said she was "extremely troubled" by China's actions and called on the Beijing authorities "not to put up barriers and limit trade."

She said the action was "bad for the global economy and generates additional obstacles."

"I believe there are areas where we must challenge Chinese policies, but there are also important prospects to sell into Chinese markets, including financial services and other sectors of the economic system. We've got to achieve that equilibrium right."

The chancellor also stated she was working with other major economies "regarding our own essential resources plan, so that we are reduced dependence."

Health Service Drug Pricing and Investment

The Chancellor also acknowledged that the cost the NHS spends on drugs could rise as a result of ongoing talks with the US government and its drugs companies, in return for reduced taxes and funding.

Some of the biggest global pharmaceutical manufacturers have said lately that they are either halting or canceling operations in the United Kingdom, with some attributing the low prices they are obtaining.

Last month, the government science advisor said the cost the health service pays for medicines would have to increase to prevent businesses and pharmaceutical investment departing from the UK.

Reeves informed media: "We have seen because of the payment system, that medical research, innovative medicines have not been provided in the UK in the extent that they are in other European countries."

"The objective is to make sure that individuals getting care from the National Health Service are able to obtain the top critical drugs in the globe. And so we are reviewing this situation, and... looking to secure additional capital into Britain."