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Treasury head Reeves has stated she is planning "targeted measures to tackle cost of living issues" in the upcoming Budget.

Speaking to the BBC, she emphasized that lowering inflation is a shared duty of both the government and the Bank of England.

The UK's price growth is forecast to be the highest among the G7 developed nations this year and the following year.

Possible Utility Cost Measures

It is understood the administration could intervene to lower energy bills, for instance by slashing the present 5% rate of value-added tax applied on energy supplies.

Another possibility is to cut some of the government charges currently included in bills.

Budgetary Limitations and Expert Expectations

The government will receive the next draft from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will show how much space there is for these measures.

The view from the majority of economists is that Reeves will have to introduce tax rises or expenditure reductions in order to meet her declared debt limits.

Earlier on the same day, calculations showed there was a £22 billion gap for the Treasury chief to address, which is at the lower end of forecasts.

"It is a shared job between the central bank and the administration to further reduce some of the drivers of price increases," the Chancellor told reporters in Washington, at the annual meetings of the International Monetary Fund and global financial institution.

Revenue Commitments and International Issues

While a great deal of the attention has been on probable tax rises, the chancellor said the most recent information from the fiscal watchdog had not changed her commitment to election pledges not to increase rates on earnings tax, VAT or National Insurance.

She blamed an "unpredictable world" with increasing geopolitical and trade tensions for the fiscal revenue measures, probably to be directed on those "with the broadest shoulders."

Global Trade Tensions

Commenting on worries about the UK's commercial links with the Asian nation she said: "Our security interests always come first."

Recent announcement by China to strengthen trade restrictions on rare earths and other resources that are crucial for high-technology production led US President Donald Trump to threaten an further 100% tariff on goods from China, increasing the risk of an full-scale commercial conflict between the two largest economies.

The US Treasury Secretary called the Chinese action "economic coercion" and "a international production control attempt."

Questioned on considering the US offer to participate in its conflict with the Asian nation, the Chancellor said she was "very concerned" by China's actions and urged the Beijing authorities "to avoid restrictions and limit trade."

She said the action was "harmful for the international commerce and creates further obstacles."

"I believe there are fields where we should challenge Chinese policies, but there are also valuable prospects to trade with China's economy, including financial services and other sectors of the economy. We've got to achieve that balance correct."

The Treasury chief also stated she was collaborating with other major economies "on our own critical minerals plan, so that we are reduced dependence."

NHS Medicine Pricing and Funding

The Chancellor also recognized that the cost the National Health Service spends on pharmaceuticals could go up as a result of current talks with the Trump administration and its pharmaceutical firms, in return for lower tariffs and capital.

Some of the biggest global pharmaceutical manufacturers have said recently that they are either delaying or scrapping projects in the UK, with several blaming the insufficient payments they are obtaining.

Last month, the government science advisor said the cost the health service pays for medicines would must go up to stop companies and drug research funding departing from the UK.

Reeves informed the BBC: "It has been observed as a result of the cost structure, that medical research, recent pharmaceuticals have not been provided in the UK in the way that they are in other EU nations."

"The objective is to guarantee that people receiving care from the National Health Service are can access the finest essential drugs in the globe. And so we are examining these issues, and... seeking to obtain increased investment into Britain."