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Chancellor Reeves has stated she is preparing "specific steps to tackle cost of living issues" in next month's Budget.

In comments to media outlets, she stated that lowering inflation is a shared duty of both the administration and the Bank of England.

The UK's inflation rate is forecast to be the highest among the G7 industrialized countries this year and the following year.

Potential Energy Bill Measures

It is understood the administration could intervene to bring down energy bills, such as by slashing the current 5% rate of VAT charged on energy.

Another approach is to lower some of the government charges currently included in household expenses.

Fiscal Constraints and Expert Predictions

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

The consensus from the majority of economists is that the Chancellor will have to declare higher taxes or budget cuts in order to meet her declared debt limits.

Previously on Thursday, estimates indicated there was a £22 billion shortfall for the chancellor to address, which is at the lower end of expectations.

"It is a collective responsibility between the central bank and the government to further reduce some of the causes of price increases," Reeves stated to the BBC in Washington, at the yearly gatherings of the IMF and global financial institution.

Revenue Commitments and Global Issues

While much of the focus has been on expected tax rises, the chancellor said the most recent information from the fiscal watchdog had not changed her pledge to campaign commitments not to increase rates on earnings tax, sales tax or National Insurance.

She blamed an "unpredictable global environment" with rising geopolitical and trade issues for the fiscal tax moves, probably to be targeted on those "most able to pay."

International Trade Tensions

Addressing apprehensions about the UK's commercial links with China she said: "The UK's security interests invariably are paramount."

Recent statement by China to tighten export controls on critical minerals and other materials that are essential for advanced tech manufacturing led US President Donald Trump to propose an further 100% tariff on imports from the Asian country, raising the prospect of an all-out commercial conflict between the two largest economies.

The US Treasury Secretary called the Chinese action "commercial pressure" and "a global supply chain control attempt."

Inquired about accepting the US offer to participate in its battle with China, Reeves said she was "very concerned" by China's actions and called on the Beijing authorities "not to put up barriers and restrict access."

She said the decision was "harmful for the world economy and creates further challenges."

"I believe there are sectors where we should confront Chinese policies, but there are also important opportunities to export to China's economy, including financial services and other areas of the economy. We've got to maintain that balance appropriate."

The Treasury chief also affirmed she was collaborating with other major economies "on our own essential resources strategy, so that we are more independent."

NHS Medicine Pricing and Investment

The Chancellor also recognized that the price the NHS spends on medicines could rise as a result of current talks with the US government and its drugs companies, in return for lower tariffs and investment.

Some of the world's largest drug companies have said recently that they are either halting or canceling operations in the UK, with some blaming the modest returns they are obtaining.

Recently, the Science Minister said the price the health service pays for drugs would have to rise to stop companies and drug research funding leaving the UK.

Reeves informed media: "We have seen due to the pricing regime, that medical research, innovative medicines have not been available in the United Kingdom in the way that they are in other EU nations."

"We want to guarantee that patients receiving care from the National Health Service are can access the best essential drugs in the globe. And so we are looking at this situation, and... seeking to attract increased funding into the UK."