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Chancellor Reeves has announced she is preparing "targeted measures to tackle cost of living pressures" in next month's Budget.

In comments to the BBC, she stated that curbing price rises is a joint duty of both the administration and the Bank of England.

The UK's price growth is expected to be the highest among the Group of Seven advanced economies this calendar year and the following year.

Possible Utility Cost Measures

Reports indicate the government could take action to lower utility costs, such as by slashing the present 5% rate of value-added tax applied on energy supplies.

An additional possibility is to lower some of the regulatory levies currently added to household expenses.

Fiscal Limitations and Analyst Expectations

The government will obtain the next assessment from the official forecaster, the OBR, on Monday, which will show how much room there is for these measures.

The view from the majority of experts is that Reeves will have to announce tax increases or expenditure reductions in order to fulfill her voluntary fiscal targets.

Earlier on the same day, calculations suggested there was a £22bn shortfall for the chancellor to fill, which is at the lower end of expectations.

"It is a shared job between the central bank and the government to continue tackling some of the causes of price increases," the Chancellor informed reporters in Washington, at the annual meetings of the International Monetary Fund and World Bank.

Tax Commitments and Global Issues

While a great deal of the attention has been on expected tax increases, the Treasury chief said the most recent figures from the fiscal watchdog had not changed her pledge to manifesto promises not to raise tax levels on earnings tax, sales tax or National Insurance.

She attributed an "uncertain world" with rising international and commercial tensions for the Budget tax moves, likely to be directed on those "most able to pay."

International Economic Tensions

Commenting on worries about the United Kingdom's commercial links with the Asian nation she said: "The UK's security interests invariably are paramount."

Recent statement by China to tighten export controls on rare earths and other materials that are key for high-technology manufacturing led American leader the US President to propose an extra 100% import tax on goods from the Asian country, raising the prospect of an all-out commercial conflict between the two global powers.

The US Treasury Secretary described the Chinese move "commercial pressure" and "a global supply chain power grab."

Asked about considering the American proposal to join its conflict with the Asian nation, the Chancellor said she was "extremely troubled" by Chinese measures and encouraged the Chinese government "not to put up barriers and limit trade."

She said the move was "bad for the world economy and causes additional challenges."

"It is my opinion there are areas where we must address Chinese policies, but there are also significant chances to trade with China's economy, including financial services and other areas of the economy. We've got to maintain that equilibrium appropriate."

The Treasury chief also stated she was cooperating with other major economies "on our own critical minerals approach, so that we are reduced dependence."

Health Service Drug Pricing and Funding

The Chancellor also acknowledged that the price the NHS spends on pharmaceuticals could rise as a consequence of ongoing talks with the US government and its pharmaceutical firms, in return for reduced taxes and funding.

Some of the world's largest pharmaceutical manufacturers have said in recent statements that they are either pausing or abandoning operations in the UK, with several attributing the low prices they are obtaining.

Recently, the government science advisor said the price the NHS spends on medicines would need to increase to stop firms and pharmaceutical investment departing from the United Kingdom.

Reeves stated to the BBC: "It has been observed as a result of the pricing regime, that drug testing, recent pharmaceuticals have not been provided in the UK in the manner that they are in other EU nations."

"We want to guarantee that patients receiving care from the National Health Service are able to obtain the finest essential medicines in the globe. And so we are examining these issues, and... seeking to attract additional investment into the UK."