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Treasury head Rachel Reeves has stated she is preparing "focused measures to address cost of living pressures" in next month's Budget.

Speaking to media outlets, she noted that reducing price rises is a shared duty of both the government and the central bank.

The United Kingdom's price growth is projected to be the highest among the Group of Seven advanced economies this year and next.

Potential Energy Cost Measures

It is understood the administration could intervene to reduce utility costs, for example by reducing the present 5% rate of VAT charged on energy.

Another option is to cut some of the policy costs presently added to household expenses.

Budgetary Limitations and Expert Predictions

The administration will obtain the latest report from the independent fiscal watchdog, the Office for Budget Responsibility, on the start of the week, which will clarify how much space there is for these actions.

The consensus from most analysts is that Reeves will have to announce tax rises or expenditure reductions in order to fulfill her declared borrowing rules.

Earlier on the same day, calculations showed there was a twenty-two billion pound gap for the chancellor to address, which is at the more modest range of forecasts.

"It is a shared task between the Bank of England and the administration to further reduce some of the sources of price increases," the Chancellor stated to reporters in the US capital, at the annual meetings of the International Monetary Fund and global financial institution.

Tax Pledges and International Issues

While a great deal of the focus has been on probable tax rises, the chancellor said the latest data from the fiscal watchdog had not changed her vow to manifesto promises not to raise rates on earnings tax, sales tax or social security contributions.

She blamed an "uncertain global environment" with rising geopolitical and trade concerns for the Budget tax moves, likely to be targeted on those "wealthiest."

International Trade Tensions

Referring to worries about the United Kingdom's trade ties with the Asian nation she said: "Our national security always come first."

Recent announcement by Chinese authorities to tighten export controls on rare earths and other materials that are crucial for advanced tech production led US President the US President to threaten an further 100% tariff on imports from the Asian country, raising the risk of an all-out commercial conflict between the two largest economies.

The US Treasury Secretary labeled China's decision "economic coercion" and "a global supply chain power grab."

Questioned on accepting the US offer to join its battle with China, Reeves said she was "very concerned" by Chinese actions and urged the Chinese government "to avoid restrictions and restrict access."

She said the action was "bad for the world economy and generates additional challenges."

"In my view there are sectors where we need to address Chinese policies, but there are also significant chances to trade with China's economy, including banking sector and other areas of the economy. We've got to get that balance appropriate."

The chancellor also confirmed she was cooperating with other major economies "regarding our own essential resources approach, so that we are more independent."

NHS Drug Pricing and Funding

The Chancellor also recognized that the price the NHS pays for drugs could go up as a result of current discussions 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 in recent statements that they are either delaying or abandoning investments in the United Kingdom, with some blaming the low prices they are obtaining.

Recently, the government science advisor said the cost the NHS spends on medicines would need to go up to prevent businesses and pharmaceutical investment departing from the UK.

Reeves stated to media: "It has been observed due to the payment system, that drug testing, recent pharmaceuticals have not been provided in the UK in the extent that they are in other continental states."

"The objective is to make sure that individuals receiving care from the National Health Service are can obtain the best critical treatments in the world. And so we are reviewing these issues, and... looking to attract more capital into the UK."