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Chancellor Rachel Reeves has stated she is planning "focused measures to tackle cost of living issues" in the upcoming Budget.

Speaking to the BBC, she noted that curbing inflation is a collective duty of both the government and the central bank.

The United Kingdom's inflation rate is forecast to be the highest among the G7 industrialized countries this year and next.

Possible Energy Cost Measures

Reports indicate the administration could take action to bring down utility costs, such as by reducing the current 5% rate of VAT charged on energy.

A further possibility is to reduce some of the government charges currently added to household expenses.

Budgetary Constraints and Expert Expectations

The government will obtain the latest draft from the independent fiscal watchdog, the OBR, on Monday, which will reveal how much scope there is for these actions.

The view from most analysts is that the Chancellor will have to announce tax increases or spending cuts in order to fulfill her self-imposed fiscal targets.

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

"It is a collective task between the Bank of England and the administration to continue tackling some of the causes of inflation," Reeves informed the BBC in the US capital, at the yearly gatherings of the International Monetary Fund and World Bank.

Tax Commitments and Global Issues

While much of the attention has been on expected tax increases, the chancellor said the latest figures from the fiscal watchdog had not changed her commitment to manifesto promises not to raise tax levels on income tax, sales tax or social security contributions.

She attributed an "unpredictable global environment" with rising geopolitical and trade issues for the fiscal tax moves, likely to be targeted on those "with the broadest shoulders."

International Trade Tensions

Addressing apprehensions about the United Kingdom's economic relations with China she said: "The UK's security interests invariably are paramount."

Last week's declaration by Chinese authorities to increase export controls on rare earths and other resources that are crucial for advanced tech manufacturing led US President Donald Trump to suggest an further 100% import tax on imports from China, raising the possibility of an full-scale commercial conflict between the two economic giants.

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

Inquired about considering the US offer to participate in its battle with China, the Chancellor said she was "extremely troubled" by China's measures and urged the Beijing authorities "not to put up barriers and limit trade."

She said the move was "damaging for the global economy and creates additional challenges."

"In my view there are sectors where we need to confront China, 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 get that balance correct."

The Treasury chief also affirmed she was cooperating with international partners "regarding our own essential resources strategy, so that we are more independent."

NHS Drug Pricing and Funding

Reeves also acknowledged that the cost the National Health Service spends on drugs could rise as a result of current negotiations with the US government and its drugs companies, in exchange for lower tariffs and funding.

Some of the world's largest drug companies have said lately that they are either halting or canceling investments in the UK, with some blaming the insufficient payments they are getting.

Recently, the Science Minister said the cost the health service pays for drugs would must rise to stop businesses and pharmaceutical investment leaving the UK.

The Chancellor told the BBC: "We have seen as a result of the cost structure, that medical research, new drugs have not been available in the UK in the way that they are in other EU nations."

"Our aim is to guarantee that patients getting care from the National Health Service are can access the best life-saving treatments in the world. And so we are looking at this situation, and... looking to secure more capital into the UK."