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Treasury head Rachel Reeves has announced she is preparing "focused steps to deal with cost of living pressures" in next month's Budget.

In comments to the BBC, she stated that curbing price rises is a joint responsibility of both the government and the central bank.

The United Kingdom's price growth is forecast to be the most elevated among the G7 developed nations this calendar year and next.

Possible Energy Cost Measures

It is understood the administration could intervene to lower utility costs, for instance by cutting the current 5% level of VAT applied on energy.

Another possibility is to lower some of the government charges presently included in household expenses.

Fiscal Limitations and Analyst Predictions

The government will receive the latest draft from the independent fiscal watchdog, the OBR, on Monday, which will clarify how much space there is for these measures.

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

Previously on Thursday, estimates showed there was a twenty-two billion pound shortfall for the Treasury chief to address, which is at the more modest range of projections.

"It is a shared task between the Bank of England and the government to continue tackling some of the sources of inflation," Reeves told reporters in Washington, at the yearly gatherings of the International Monetary Fund and World Bank.

Tax Pledges and Global Concerns

While a great deal of the focus has been on probable tax increases, the Treasury chief said the most recent data from the OBR had not altered her pledge to election pledges not to raise rates on income tax, VAT or social security contributions.

She attributed an "uncertain world" with rising geopolitical and trade issues for the Budget revenue measures, probably to be directed on those "wealthiest."

Global Economic Disputes

Referring to worries about the United Kingdom's economic relations with China she said: "The UK's security interests invariably are paramount."

Recent announcement by China to tighten trade restrictions on rare earths and other materials that are essential for high-technology manufacturing led US President the US President to propose an extra 100% tariff on goods from the Asian country, increasing the prospect of an full-scale trade war between the two global powers.

The US Treasury Secretary described the Chinese move "economic coercion" and "a international production power grab."

Questioned on accepting the American proposal to join its conflict with the Asian nation, Reeves said she was "extremely troubled" by Chinese measures and encouraged the Chinese government "to avoid restrictions and restrict access."

She said the move was "harmful for the international commerce and creates additional challenges."

"It is my opinion there are sectors where we must challenge China, but there are also important opportunities to export to Chinese markets, including financial services and other areas of the economic system. We've got to get that equilibrium appropriate."

The Treasury chief also confirmed she was cooperating with G7 counterparts "regarding our own critical minerals strategy, so that we are more independent."

Health Service Medicine Costs and Investment

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

A number of the biggest global pharmaceutical manufacturers have said recently that they are either pausing or canceling operations in the UK, with several attributing the modest returns they are getting.

Last month, the government science advisor said the cost the NHS spends on medicines would must go up to prevent companies and drug research funding leaving the United Kingdom.

Reeves stated to the BBC: "We have seen due to the payment system, that medical research, 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 getting treatment from the National Health Service are able to receive the finest life-saving medicines in the world. And so we are reviewing this situation, and... looking to obtain additional capital into the UK."