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Treasury head Rachel Reeves has stated she is preparing "targeted measures to tackle cost of living issues" in next month's Budget.

During an interview with the BBC, she stated that curbing price rises is a joint task of both the government and the central bank.

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

Potential Utility Bill Measures

It is understood the government could intervene to bring down utility costs, for example by reducing the present 5% rate of VAT applied on energy.

An additional option is to reduce some of the government charges currently included in household expenses.

Fiscal Limitations and Analyst Expectations

The administration will obtain the next assessment from the independent fiscal watchdog, the OBR, on Monday, which will show how much room there is for these measures.

The view from the majority of analysts is that the Chancellor will have to announce tax rises or spending cuts in order to adhere to her voluntary borrowing rules.

Earlier on Thursday, calculations suggested there was a twenty-two billion pound gap for the chancellor to resolve, which is at the more modest range of projections.

"There's a collective responsibility between the central bank and the administration to continue tackling some of the drivers of inflation," the Chancellor informed reporters in Washington, at the conferences of the International Monetary Fund and World Bank.

Revenue Pledges and International Issues

While much of the focus has been on probable tax rises, the chancellor said the latest information from the fiscal watchdog had not changed her vow to election pledges not to increase rates on earnings tax, sales tax or social security contributions.

She blamed an "uncertain global environment" with increasing geopolitical and commercial issues for the fiscal revenue measures, likely to be directed on those "most able to pay."

Global Trade Tensions

Addressing worries about the United Kingdom's economic relations with the Asian nation she said: "The UK's security interests always take priority."

Last week's announcement by Chinese authorities to tighten trade restrictions on rare earths and other materials that are crucial for high-technology production led US President Donald Trump to propose an further 100% import tax on goods from China, increasing the risk of an all-out commercial conflict between the two largest economies.

The American finance chief called China's action "economic coercion" and "a global supply chain power grab."

Inquired about considering the American proposal to join its dispute with China, the Chancellor 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 world economy and creates further headwinds."

"In my view there are fields where we must address Chinese policies, but there are also important prospects to export to China's economy, including banking sector and other areas of the economy. We've got to get that equilibrium right."

The Treasury chief also confirmed she was working with other major economies "on our own critical minerals approach, so that we are less reliant."

Health Service Medicine Pricing and Funding

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

Some of the world's largest drug companies have said in recent statements that they are either delaying or canceling investments in the United Kingdom, with some attributing the low prices they are getting.

Last month, the Science Minister said the price the health service spends on medicines would need to increase to stop businesses and drug research funding leaving the United Kingdom.

Reeves told the BBC: "It has been observed due to the cost structure, that medical research, new drugs have not been offered in the United Kingdom in the extent that they are in other EU nations."

"The objective is to make sure that people receiving treatment from the NHS are can obtain the finest life-saving drugs in the globe. And so we are reviewing all of that, and... seeking to obtain additional capital into the UK."