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Chancellor Reeves has announced she is planning "focused steps to tackle cost of living pressures" in next month's Budget.

In comments to the BBC, she emphasized that lowering inflation is a collective responsibility of both the government and the central bank.

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

Possible Utility Bill Interventions

It is understood the administration could take action to lower energy bills, for instance by slashing the current 5% rate of VAT applied on energy supplies.

An additional possibility is to cut some of the policy costs currently added to household expenses.

Budgetary Constraints and Analyst Expectations

The administration will receive the latest report from the official forecaster, the OBR, on Monday, which will clarify how much room there is for these actions.

The view from the majority of economists is that the Chancellor will have to declare higher taxes or budget cuts in order to fulfill her declared borrowing rules.

Previously on Thursday, estimates suggested there was a £22bn gap for the Treasury chief to address, which is at the more modest range of expectations.

"It is a shared job between the Bank of England and the administration to continue tackling some of the drivers of price increases," Reeves informed the BBC in Washington, at the yearly gatherings of the International Monetary Fund and global financial institution.

Revenue Commitments and International Issues

While much of the focus has been on expected tax increases, the chancellor said the latest information from the fiscal watchdog had not changed her commitment to election pledges not to increase tax levels on income tax, VAT or National Insurance.

She blamed an "uncertain global environment" with growing international and trade tensions for the fiscal revenue measures, probably to be directed on those "most able to pay."

International Trade Disputes

Commenting on concerns about the UK's commercial links with the Asian nation she said: "Our security interests invariably come first."

Last week's statement by China to increase trade restrictions on critical minerals and other resources that are essential for high-technology production led American leader Donald Trump to propose an additional 100% tariff on goods from China, increasing the risk of an all-out trade war between the two economic giants.

The US Treasury Secretary called the Chinese move "economic coercion" and "a global supply chain power grab."

Asked about accepting the US offer to participate in its dispute with China, the Chancellor said she was "extremely troubled" by Chinese measures and encouraged the Chinese government "not to put up barriers and restrict access."

She said the action was "damaging for the international commerce and causes additional obstacles."

"I believe there are fields where we should address Chinese policies, but there are also important chances to sell into Chinese markets, including banking sector and other sectors of the economic system. We've got to get that equilibrium right."

The Treasury chief also affirmed she was working with international partners "regarding our own critical minerals strategy, so that we are less reliant."

NHS Medicine Pricing and Funding

Reeves also admitted that the cost the NHS spends on medicines could rise as a consequence of ongoing negotiations with the US government and its drugs companies, in exchange for lower tariffs and investment.

A number of the biggest global drug companies have said lately that they are either delaying or scrapping investments in the United Kingdom, with some blaming the insufficient payments they are obtaining.

Last month, the government science advisor said the cost the NHS spends on drugs would have to go up to stop firms and pharmaceutical investment leaving the United Kingdom.

Reeves told media: "It has been observed because of the pricing regime, that drug testing, innovative medicines have not been available in the UK in the way that they are in other European countries."

"Our aim is to ensure that people getting treatment from the National Health Service are can access the best essential medicines in the globe. And so we are reviewing all of that, and... aiming to obtain more capital into Britain."