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Treasury head Reeves has revealed she is preparing "focused action to tackle cost of living pressures" in next month's Budget.

During an interview with the BBC, she stated that reducing inflation is a joint responsibility of both the administration and the Bank of England.

The UK's price growth is expected to be the highest among the G7 advanced economies this calendar year and next.

Possible Utility Cost Measures

Reports indicate the government could intervene to lower energy bills, for instance by cutting the present 5% level of VAT charged on energy supplies.

Another approach is to cut some of the policy costs presently included in household expenses.

Fiscal Limitations and Analyst Predictions

The administration will obtain the next draft from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will reveal how much space there is for such actions.

The consensus from the majority of analysts is that the Chancellor will have to introduce tax increases or expenditure reductions in order to adhere to her voluntary fiscal targets.

Earlier on the same day, analysis showed there was a £22bn deficit for the Treasury chief to fill, which is at the more modest range of forecasts.

"It is a joint job between the Bank of England and the administration to continue tackling some of the drivers of price increases," the Chancellor told the BBC in Washington, at the yearly gatherings of the IMF and World Bank.

Revenue Commitments and International Concerns

While a great deal of the focus has been on likely tax rises, the chancellor said the most recent data from the OBR had not altered her vow to election pledges not to raise tax levels on earnings tax, sales tax or social security contributions.

She blamed an "uncertain global environment" with increasing geopolitical and trade issues for the fiscal revenue measures, likely to be targeted on those "with the broadest shoulders."

Global Trade Disputes

Addressing concerns about the UK's economic relations with China she said: "Our national security always come first."

Recent statement by China to tighten export controls on rare earths and other resources that are essential for advanced tech manufacturing led US President Donald Trump to propose an further 100% import tax on imports from the Asian country, raising the possibility of an full-scale commercial conflict between the two economic giants.

The US Treasury Secretary described China's move "commercial pressure" and "a global supply chain control attempt."

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 "not to put up barriers and limit trade."

She said the action was "damaging for the global economy and creates additional headwinds."

"It is my opinion there are areas where we must address China, but there are also important opportunities to trade with China's economy, including banking sector and other sectors of the economy. We've got to get that equilibrium appropriate."

The Treasury chief also confirmed she was collaborating with other major economies "on our own critical minerals approach, so that we are less reliant."

NHS Medicine Costs and Investment

The Chancellor also admitted that the cost the NHS pays for drugs could rise as a consequence of ongoing talks with the Trump administration and its drugs companies, in return for reduced taxes and investment.

A number of the biggest global pharmaceutical manufacturers have said lately that they are either delaying or abandoning investments in the UK, with some blaming the modest returns they are receiving.

Recently, the government science advisor said the cost the NHS spends on medicines would must rise to prevent businesses and pharmaceutical investment leaving the UK.

Reeves informed the BBC: "It has been observed due to the payment system, that drug testing, innovative medicines have not been offered in the United Kingdom in the extent that they are in other continental states."

"Our aim is to ensure that people getting treatment from the National Health Service are able to receive the finest critical drugs in the globe. And so we are reviewing all of that, and... aiming to obtain increased funding into the UK."