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Treasury head Rachel Reeves has announced she is planning "focused measures to address cost of living issues" in next month's Budget.

Speaking to media outlets, she noted that lowering price rises is a joint duty of both the administration and the Bank of England.

The UK's price growth is projected to be the highest among the Group of Seven industrialized countries this year and the following year.

Possible Utility Bill Measures

Sources suggest the government could intervene to bring down utility costs, for instance by slashing the current 5% rate of value-added tax applied on energy supplies.

A further option is to lower some of the regulatory levies currently included in household expenses.

Fiscal Constraints and Analyst Predictions

The government will receive the latest draft from the independent fiscal watchdog, the Office for Budget Responsibility, on the start of the week, which will clarify how much scope there is for these actions.

The expectation from most analysts is that the Chancellor will have to declare higher taxes or budget cuts in order to meet her declared debt limits.

Earlier on Thursday, estimates suggested there was a twenty-two billion pound shortfall for the chancellor to resolve, which is at the lower end of expectations.

"There's a joint task between the central bank and the government to continue tackling some of the sources of inflation," Reeves told the BBC in the US capital, at the yearly gatherings of the IMF and World Bank.

Tax Pledges and International Issues

While much of the attention has been on likely tax rises, the Treasury chief said the most recent information from the OBR had not altered her pledge to election pledges not to increase rates on earnings tax, VAT or National Insurance.

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

International Economic Disputes

Commenting on worries about the United Kingdom's trade ties with China she said: "Our national security always are paramount."

Recent statement by Chinese authorities to increase export controls on rare earths and other resources that are essential for advanced tech production led American leader the US President to threaten an further 100% import tax on goods from the Asian country, increasing the prospect of an full-scale commercial conflict between the two global powers.

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

Inquired about considering the American proposal to join its dispute with China, Reeves said she was "extremely troubled" by China's actions and urged the Beijing authorities "not to put up barriers and limit trade."

She said the decision was "bad for the global economy and causes additional headwinds."

"I believe there are fields where we must confront China, but there are also valuable chances to sell into Chinese markets, including banking sector and other sectors of the economy. We've got to achieve that balance correct."

The chancellor also affirmed she was working with G7 counterparts "on our own critical minerals plan, so that we are more independent."

Health Service Medicine Costs and Funding

Reeves also admitted that the price the NHS pays for drugs could rise as a consequence of current discussions with the US government and its pharmaceutical firms, in exchange for reduced taxes and capital.

Some of the biggest global drug companies have said in recent statements that they are either halting or abandoning investments in the UK, with some blaming the low prices they are receiving.

Last month, the government science advisor said the cost the health service spends on medicines would need to go up to prevent firms and pharmaceutical investment leaving the UK.

Reeves informed media: "We have seen as a result of the pricing regime, that drug testing, recent pharmaceuticals have not been provided in the United Kingdom in the extent that they are in other European countries."

"The objective is to make sure that people getting treatment from the NHS are can receive the best essential medicines in the world. And so we are looking at these issues, and... seeking to secure additional funding into the UK."