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Chancellor Rachel Reeves has stated she is planning "specific measures to deal with cost of living issues" in next month's Budget.

During an interview with the BBC, she noted that lowering price rises is a collective task of both the government and the central bank.

The United Kingdom's inflation rate is projected to be the highest among the Group of Seven industrialized countries this calendar year and next.

Possible Energy Bill Interventions

Reports indicate the government could take action to lower energy bills, for instance by cutting the present 5% level of VAT applied on energy.

Another option is to lower some of the policy costs currently added to household expenses.

Budgetary Constraints and Expert Predictions

The government will obtain the next assessment from the official forecaster, the OBR, on the start of the week, which will clarify how much scope there is for such actions.

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

Previously on the same day, calculations suggested there was a £22 billion gap for the chancellor to fill, which is at the more modest range of projections.

"It is a joint task between the central bank and the government to bear down further on some of the sources of price increases," Reeves stated to reporters in the US capital, at the conferences of the International Monetary Fund and World Bank.

Tax Commitments and International Concerns

While a great deal of the focus has been on probable tax increases, the Treasury chief said the most recent figures from the OBR had not changed her vow to manifesto promises not to raise tax levels on income tax, sales tax or National Insurance.

She attributed an "unpredictable world" with rising international and commercial tensions for the fiscal tax moves, likely to be directed on those "wealthiest."

Global Economic Disputes

Referring to concerns about the United Kingdom's trade ties with the Asian nation she said: "Our security interests invariably come first."

Recent statement by Chinese authorities to strengthen export controls on rare earths and other materials that are key for high-technology production led US President Donald Trump to suggest an extra 100% tariff on imports from the Asian country, raising the prospect of an all-out trade war between the two economic giants.

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

Asked about accepting the US offer to participate in its battle with China, the Chancellor said she was "extremely troubled" by China's measures and called on the Beijing authorities "to avoid restrictions and limit trade."

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

"In my view there are fields where we should confront Chinese policies, 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 get that balance correct."

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

Health Service Drug Costs and Investment

The Chancellor also acknowledged that the price the National Health Service pays for drugs could go up as a consequence of ongoing negotiations with the US government and its drugs companies, in return for lower tariffs and funding.

Some of the world's largest drug companies have said lately that they are either delaying or canceling projects in the UK, with several blaming the low prices they are obtaining.

Last month, the Science Minister said the price the health service spends on drugs would have to go up to stop companies and drug research funding leaving the United Kingdom.

The Chancellor informed media: "It has been observed because of the payment system, that medical research, new drugs have not been offered in the UK in the extent that they are in other European countries."

"We want to guarantee that patients getting treatment from the NHS are can access the top life-saving treatments in the globe. And so we are reviewing all of that, and... looking to obtain increased investment into Britain."