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

In comments to media outlets, she stated that reducing inflation is a shared duty of both the administration and the central bank.

The UK's price growth is expected to be the highest among the Group of Seven industrialized countries this year and next.

Possible Utility Bill Measures

Sources suggest the administration could intervene to bring down energy bills, for example by reducing the present 5% rate of VAT charged on energy.

An additional approach is to reduce some of the government charges presently added to household expenses.

Fiscal Constraints and Expert Predictions

The government will receive the next report from the official forecaster, the OBR, on Monday, which will clarify how much space there is for such measures.

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

Earlier on Thursday, estimates indicated there was a £22bn deficit for the Treasury chief to fill, which is at the more modest range of projections.

"There's a joint responsibility between the Bank of England and the government to further reduce some of the drivers of price increases," Reeves told reporters in Washington, at the conferences of the IMF and World Bank.

Tax Commitments and International Issues

While a great deal of the attention has been on probable tax increases, the Treasury chief said the most recent information from the fiscal watchdog had not changed her commitment to campaign commitments not to increase rates on earnings tax, VAT or National Insurance.

She attributed an "unpredictable global environment" with increasing international and commercial issues for the fiscal revenue measures, probably to be focused on those "wealthiest."

International Economic Tensions

Referring to concerns about the United Kingdom's commercial links with China she said: "Our national security always take priority."

Recent announcement by China to increase trade restrictions on critical minerals and other resources that are crucial for advanced tech production led American leader Donald Trump to suggest an additional 100% tariff on goods from China, increasing the possibility of an all-out commercial conflict between the two global powers.

The American finance chief described the Chinese move "economic coercion" and "a global supply chain power grab."

Inquired about accepting the American proposal to join its dispute with China, the Chancellor said she was "deeply worried" by China's actions and called on the Beijing authorities "not to put up barriers and limit trade."

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

"In my view there are areas where we must challenge Chinese policies, but there are also valuable opportunities to sell into China's economy, including banking sector and other areas of the economy. We've got to achieve that balance correct."

The chancellor also affirmed she was working with G7 counterparts "on our own essential resources plan, so that we are less reliant."

Health Service Medicine Pricing and Funding

Reeves also acknowledged that the cost the NHS spends on drugs could go up as a result of current negotiations with the US government and its pharmaceutical firms, in exchange for lower tariffs and investment.

Some of the biggest global pharmaceutical manufacturers have said in recent statements that they are either delaying or abandoning investments in the United Kingdom, with some blaming the low prices they are getting.

Recently, the Science Minister said the price the health service spends on drugs would have to increase to halt firms and drug research funding leaving the United Kingdom.

Reeves stated to the BBC: "It has been observed as a result of the payment system, that medical research, recent pharmaceuticals have not been provided in the United Kingdom in the manner that they are in other EU nations."

"Our aim is to guarantee that patients receiving treatment from the National Health Service are able to receive the top life-saving drugs in the world. And so we are reviewing all of that, and... looking to secure additional capital into Britain."