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Treasury head Rachel Reeves has announced she is preparing "specific measures to address cost of living issues" in next month's Budget.

Speaking to the BBC, she noted that reducing inflation is a shared duty of both the government and the central bank.

The UK's price growth is expected to be the highest among the Group of Seven advanced economies this calendar year and next.

Possible Utility Bill Interventions

Sources suggest the government could take action to lower energy bills, for example by slashing the current 5% level of VAT applied on energy.

An additional option is to cut some of the policy costs presently added to bills.

Budgetary Limitations and Expert Expectations

The government will obtain the next assessment from the official forecaster, the OBR, on the start of the week, which will reveal how much scope there is for such measures.

The consensus from the majority of economists is that Reeves will have to announce tax increases or spending cuts in order to adhere to her self-imposed debt limits.

Earlier on the same day, analysis suggested there was a £22 billion gap for the chancellor to fill, which is at the lower end of forecasts.

"It is a shared responsibility between the central bank and the administration to further reduce some of the drivers of price increases," the Chancellor stated to the BBC in the US capital, at the conferences of the IMF and World Bank.

Revenue Commitments and International Concerns

While a great deal of the focus has been on expected tax rises, the chancellor said the latest information from the OBR had not altered her commitment to manifesto promises not to increase tax levels on earnings tax, sales tax or social security contributions.

She blamed an "uncertain global environment" with growing geopolitical and commercial concerns for the Budget revenue measures, likely to be directed on those "most able to pay."

International Economic Disputes

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

Last week's announcement by China to strengthen trade restrictions on critical minerals and other resources that are essential for high-technology production led US President the US President to propose an extra 100% import tax on goods from China, increasing the risk of an all-out trade war between the two largest economies.

The American finance chief described the Chinese move "commercial pressure" and "a global supply chain power grab."

Asked about accepting the US offer to join its battle with the Asian nation, Reeves said she was "deeply worried" by Chinese measures and called on the Chinese government "to avoid restrictions and limit trade."

She said the decision was "damaging for the international commerce and creates additional headwinds."

"It is my opinion there are fields where we must challenge China, but there are also valuable opportunities to trade with China's economy, including financial services and other sectors of the economic system. We've got to get that balance appropriate."

The chancellor also affirmed she was cooperating with other major economies "on our own critical minerals approach, so that we are less reliant."

Health Service Medicine Pricing and Funding

Reeves also acknowledged that the cost the National Health Service pays for drugs could increase as a result of ongoing talks with the Trump administration and its pharmaceutical firms, in return for lower tariffs and funding.

Some of the world's largest pharmaceutical manufacturers have said lately that they are either pausing or abandoning operations in the UK, with some attributing the low prices they are getting.

Recently, the Science Minister said the cost the NHS pays for drugs would have to rise to halt companies and pharmaceutical investment departing from the UK.

Reeves informed media: "We have seen as a result of the payment system, that drug testing, recent pharmaceuticals have not been available in the United Kingdom in the extent that they are in other continental states."

"The objective is to make sure that people receiving treatment from the NHS are able to obtain the top critical treatments in the world. And so we are examining these issues, and... aiming to obtain more funding into Britain."