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

In comments to the BBC, she noted that curbing inflation is a shared duty of both the administration and the Bank of England.

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

Potential Energy Cost Measures

Sources suggest the administration could intervene to reduce utility costs, for instance by cutting the current 5% level of VAT charged on energy.

An additional possibility is to reduce some of the policy costs currently included in household expenses.

Budgetary Limitations and Expert Predictions

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

The expectation from the majority of experts is that the Chancellor will have to declare tax rises or expenditure reductions in order to adhere to her self-imposed debt limits.

Previously on the same day, calculations suggested there was a £22 billion gap for the chancellor to address, which is at the lower end of projections.

"It is a joint job between the Bank of England and the government to further reduce some of the causes of inflation," Reeves informed reporters in Washington, at the yearly gatherings of the International Monetary Fund and global financial institution.

Tax Commitments and Global Concerns

While a great deal of the attention has been on expected tax rises, the chancellor said the most recent figures from the fiscal watchdog had not altered her vow to election pledges not to increase rates on earnings tax, sales tax or National Insurance.

She attributed an "uncertain global environment" with increasing international and commercial concerns for the fiscal revenue measures, likely to be focused on those "most able to pay."

International Economic Tensions

Referring to concerns about the UK's commercial links with China she said: "Our national security always are paramount."

Last week's declaration by Chinese authorities to strengthen export controls on rare earths and other resources that are key for high-technology manufacturing led American leader Donald Trump to suggest an further 100% import tax on imports from China, raising the possibility of an all-out trade war between the two global powers.

The US Treasury Secretary described China's decision "economic coercion" and "a international production control attempt."

Inquired about accepting the US offer to participate in its dispute with the Asian nation, Reeves said she was "extremely troubled" by Chinese actions and called on the Chinese government "not to put up barriers and restrict access."

She said the decision was "damaging for the international commerce and creates additional obstacles."

"In my view there are areas where we should challenge China, but there are also valuable prospects to export to Chinese markets, including financial services and other sectors of the economic system. We've got to maintain that equilibrium correct."

The Treasury chief also affirmed she was collaborating with international partners "regarding our own essential resources plan, so that we are less reliant."

Health Service Drug Costs and Investment

The Chancellor also admitted that the cost the National Health Service spends on drugs could go up as a consequence of current discussions with the Trump administration and its pharmaceutical firms, in return for lower tariffs and investment.

A number of the world's largest pharmaceutical manufacturers have said in recent statements that they are either pausing or abandoning investments in the United Kingdom, with several attributing the low prices they are receiving.

Recently, the Science Minister said the price the NHS pays for medicines would need to increase to stop businesses and drug research funding leaving the United Kingdom.

The Chancellor informed the BBC: "It has been observed because of the cost structure, that medical research, innovative medicines have not been offered in the UK in the way that they are in other European countries."

"Our aim is to guarantee that people getting treatment from the NHS are able to obtain the finest critical treatments in the globe. And so we are reviewing all of that, and... looking to obtain additional investment into Britain."