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Chancellor Reeves has revealed she is planning "specific steps to deal with cost of living issues" in the upcoming Budget.

In comments to the BBC, she emphasized that reducing price rises is a collective duty of both the administration and the central bank.

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

Potential Energy Bill Interventions

It is understood the government could intervene to reduce utility costs, for example by slashing the present 5% rate of value-added tax applied on energy.

Another possibility is to reduce some of the regulatory levies currently included in bills.

Fiscal Constraints and Expert Predictions

The administration will receive the next assessment from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will clarify how much room there is for these actions.

The consensus from most experts is that the Chancellor will have to introduce higher taxes or expenditure reductions in order to fulfill her declared debt limits.

Previously on Thursday, analysis indicated there was a £22bn gap for the Treasury chief to resolve, which is at the lower end of projections.

"There's a shared responsibility between the central bank and the government to continue tackling some of the drivers of inflation," Reeves told the BBC in the US capital, at the conferences of the IMF and global financial institution.

Tax Pledges and International Concerns

While much of the focus has been on expected tax rises, the Treasury chief said the most recent figures from the OBR had not changed her pledge to manifesto promises not to raise rates on earnings tax, VAT or social security contributions.

She attributed an "uncertain world" with growing international and commercial issues for the fiscal revenue measures, likely to be targeted on those "wealthiest."

International Trade Disputes

Addressing apprehensions about the UK's economic relations with China she said: "Our security interests invariably come first."

Last week's declaration by Chinese authorities to tighten trade restrictions on critical minerals and other materials that are essential for advanced tech production led US President the US President to threaten an extra 100% tariff on goods from China, raising the prospect of an all-out commercial conflict between the two economic giants.

The US Treasury Secretary called the Chinese move "commercial pressure" and "a international production control attempt."

Inquired about considering the US offer to join its battle with China, the Chancellor said she was "extremely troubled" by Chinese actions and called on the Chinese government "not to put up barriers and restrict access."

She said the decision was "harmful for the world economy and causes additional obstacles."

"In my view there are areas where we must address China, but there are also important chances to sell into Chinese markets, including banking sector and other sectors of the economy. We've got to maintain that balance appropriate."

The Treasury chief also affirmed she was working with G7 counterparts "regarding our own essential resources approach, so that we are more independent."

Health Service Drug Pricing and Investment

The Chancellor also admitted that the cost the National Health Service pays for medicines could rise as a result of ongoing talks with the US government and its drugs companies, in exchange for reduced taxes and funding.

A number of the biggest global pharmaceutical manufacturers have said lately that they are either halting or canceling projects in the United Kingdom, with some blaming the modest returns they are getting.

Recently, the Science Minister said the cost the NHS pays for drugs would need to rise to prevent businesses and drug research funding departing from the United Kingdom.

The Chancellor stated to media: "It has been observed as a result of the cost structure, that medical research, innovative medicines have not been provided in the United Kingdom in the way that they are in other continental states."

"The objective is to guarantee that patients getting treatment from the National Health Service are can obtain the best critical treatments in the world. And so we are reviewing all of that, and... aiming to obtain more capital into the UK."