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Treasury head Rachel Reeves has announced she is planning "focused measures to address cost of living issues" in next month's financial statement.

Speaking to the BBC, she emphasized that curbing price rises is a joint task of both the government and the Bank of England.

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

Possible Energy Cost Interventions

It is understood the administration could take action to bring down utility costs, for example by cutting the current 5% level of value-added tax charged on energy.

Another possibility is to lower some of the policy costs currently included in household expenses.

Fiscal Limitations and Analyst Predictions

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

The consensus from most analysts is that Reeves will have to introduce tax increases or budget cuts in order to adhere to her self-imposed debt limits.

Earlier on the same day, analysis indicated there was a £22 billion deficit for the chancellor to resolve, which is at the lower end of expectations.

"There's a shared responsibility between the Bank of England and the administration to further reduce some of the causes of inflation," the Chancellor told the BBC in Washington, at the conferences of the IMF and global financial institution.

Revenue Commitments and International Concerns

While a great deal of the focus has been on probable tax rises, the Treasury chief said the most recent data from the fiscal watchdog had not altered her pledge to election pledges not to raise tax levels on income tax, sales tax or social security contributions.

She blamed an "unpredictable world" with increasing international and trade issues for the Budget tax moves, likely to be targeted on those "with the broadest shoulders."

Global Trade Tensions

Commenting on apprehensions about the UK's commercial links with China she said: "The UK's national security always take priority."

Last week's statement by China to tighten trade restrictions on rare earths and other materials that are essential for high-technology production led US President Donald Trump to suggest an extra 100% import tax on goods from the Asian country, raising the possibility of an full-scale commercial conflict between the two largest economies.

The American finance chief described China's action "commercial pressure" and "a global supply chain control attempt."

Questioned on accepting the US offer to participate in its conflict with China, Reeves said she was "deeply worried" by Chinese measures and urged the Chinese government "not to put up barriers and limit trade."

She said the action was "bad for the global economy and generates further obstacles."

"It is my opinion there are fields where we need to address China, but there are also valuable prospects to sell into Chinese markets, including financial services and other areas of the economic system. We've got to maintain that equilibrium appropriate."

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

NHS Drug Costs and Funding

Reeves also acknowledged that the price the National Health Service pays for pharmaceuticals could rise as a result of ongoing negotiations with the US government and its drugs companies, in exchange for reduced taxes and funding.

A number of the biggest global drug companies have said in recent statements that they are either halting or abandoning projects in the United Kingdom, with several attributing the low prices they are getting.

Last month, the Science Minister said the price the health service pays for medicines would have to increase to stop businesses and pharmaceutical investment leaving the UK.

Reeves informed media: "We have seen as a result of the pricing regime, that medical research, innovative medicines have not been provided in the United Kingdom in the manner that they are in other EU nations."

"Our aim is to make sure that people receiving treatment from the National Health Service are able to receive the top essential treatments in the world. And so we are examining all of that, and... aiming to attract increased capital into Britain."