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Treasury head Rachel Reeves has revealed she is planning "focused steps to address cost of living issues" in next month's Budget.

During an interview with media outlets, she emphasized that reducing price rises is a shared task of both the government and the central bank.

The United Kingdom's inflation rate is expected to be the highest among the G7 advanced economies this year and next.

Possible Energy Cost Measures

Reports indicate the government could take action to lower energy bills, for example by cutting the present 5% rate of VAT charged on energy supplies.

Another approach is to lower some of the regulatory levies currently included in household expenses.

Budgetary Limitations and Expert Predictions

The government will obtain the latest report from the independent fiscal watchdog, the OBR, on Monday, which will show how much room there is for such measures.

The view from the majority of experts is that the Chancellor will have to declare tax increases or spending cuts in order to adhere to her self-imposed debt limits.

Earlier on Thursday, estimates suggested there was a twenty-two billion pound deficit for the Treasury chief to resolve, which is at the lower end of expectations.

"It is a shared task between the Bank of England and the administration to bear down further on some of the sources of price increases," Reeves informed reporters in Washington, at the annual meetings of the IMF and global financial institution.

Tax Pledges and Global Issues

While a great deal of the attention has been on expected tax rises, the chancellor said the latest data from the OBR had not changed her commitment to election pledges not to raise tax levels on income tax, VAT or social security contributions.

She attributed an "unpredictable world" with increasing geopolitical and commercial concerns for the Budget tax moves, probably to be directed on those "most able to pay."

Global Economic Tensions

Addressing apprehensions about the UK's trade ties with China she said: "Our national security invariably take priority."

Recent statement by China to increase trade restrictions on rare earths and other resources that are essential for high-technology production led American leader Donald Trump to threaten an further 100% import tax on goods from the Asian country, increasing the possibility of an full-scale commercial conflict between the two global powers.

The US Treasury Secretary described China's action "commercial pressure" and "a international production control attempt."

Inquired about accepting the American proposal to join its conflict with the Asian nation, the Chancellor said she was "deeply worried" by Chinese measures and called on the Beijing authorities "not to put up barriers and restrict access."

She said the decision was "bad for the international commerce and generates further headwinds."

"I believe there are areas where we need to challenge Chinese policies, but there are also valuable prospects to sell into Chinese markets, including banking sector and other areas of the economic system. We've got to achieve that balance appropriate."

The Treasury chief also stated she was working with G7 counterparts "regarding our own essential resources plan, so that we are less reliant."

NHS Medicine Costs and Funding

Reeves also recognized that the price the NHS spends on pharmaceuticals could increase as a consequence of current talks with the Trump administration and its pharmaceutical firms, in return for lower tariffs and funding.

A number of the world's largest pharmaceutical manufacturers have said in recent statements that they are either pausing or scrapping investments in the UK, with some blaming the insufficient payments they are getting.

Recently, the Science Minister said the price the NHS pays for drugs would need to rise to stop businesses and pharmaceutical investment leaving the United Kingdom.

The Chancellor informed the BBC: "We have seen as a result of the payment system, that drug testing, recent pharmaceuticals have not been provided in the United Kingdom in the manner that they are in other continental states."

"We want to guarantee that people getting treatment from the National Health Service are can obtain the top critical drugs in the world. And so we are looking at all of that, and... looking to attract increased investment into the UK."