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Treasury head Rachel Reeves has stated she is planning "focused action to deal with cost of living issues" in next month's Budget.

During an interview with the BBC, she emphasized that curbing price rises is a collective task of both the government and the Bank of England.

The UK's inflation rate is expected to be the highest among the G7 advanced economies this calendar year and the following year.

Possible Energy Bill Measures

Sources suggest the government could take action to reduce energy bills, for example by cutting the current 5% level of value-added tax applied on energy supplies.

A further option is to reduce some of the government charges currently included in household expenses.

Budgetary Limitations and Analyst Predictions

The administration will obtain the latest assessment from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will clarify how much scope there is for such actions.

The view from the majority of analysts is that the Chancellor will have to introduce tax increases or expenditure reductions in order to fulfill her declared debt limits.

Earlier on the same day, estimates indicated there was a £22bn deficit for the Treasury chief to fill, which is at the lower end of projections.

"It is a joint task between the central bank and the administration to further reduce some of the sources of price increases," the Chancellor stated to the BBC in the US capital, at the yearly gatherings of the International Monetary Fund and global financial institution.

Tax Commitments and Global Issues

While a great deal of the attention has been on probable tax rises, the Treasury chief said the most recent 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 attributed an "unpredictable world" with growing international and trade concerns for the Budget tax moves, probably to be directed on those "wealthiest."

Global Economic Tensions

Commenting on concerns about the UK's economic relations with China she said: "The UK's national security invariably take priority."

Last week's declaration by China to tighten trade restrictions on critical minerals and other resources that are key for high-technology production led US President the US President to threaten an further 100% tariff on imports from China, increasing the prospect of an all-out commercial conflict between the two economic giants.

The American finance chief labeled the Chinese move "commercial pressure" and "a international production power grab."

Questioned on accepting the US offer to participate in its dispute with China, the Chancellor said she was "deeply worried" by China's actions and encouraged the Beijing authorities "not to put up barriers and limit trade."

She said the decision was "damaging for the international commerce and causes further challenges."

"It is my opinion there are sectors where we need to challenge Chinese policies, but there are also significant prospects to trade with China's economy, including banking sector and other sectors of the economic system. We've got to achieve that equilibrium appropriate."

The Treasury chief also stated she was collaborating with other major economies "on our own critical minerals strategy, so that we are more independent."

Health Service Drug Costs and Investment

The Chancellor also acknowledged that the cost the National Health Service spends on medicines could rise as a consequence of current discussions with the US government and its pharmaceutical firms, in exchange for lower tariffs and capital.

Some of the world's largest pharmaceutical manufacturers have said in recent statements that they are either halting or scrapping investments in the United Kingdom, with several attributing the insufficient payments they are receiving.

Recently, the Science Minister said the cost the health service spends on drugs would have to go up to halt businesses and pharmaceutical investment leaving the UK.

Reeves stated to media: "It has been observed because of the cost structure, that clinical trials, new drugs have not been provided in the United Kingdom in the manner that they are in other EU nations."

"We want to make sure that patients receiving care from the NHS are can obtain the best essential medicines in the globe. And so we are looking at these issues, and... looking to secure additional funding into the UK."