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Chancellor Reeves has announced she is planning "specific measures to deal with cost of living pressures" in the forthcoming Budget.

In comments to media outlets, she noted that lowering price rises is a collective task of both the administration and the Bank of England.

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

Potential Energy Bill Measures

It is understood the government could intervene to lower energy bills, such as by slashing the present 5% level of value-added tax applied on energy supplies.

An additional option is to lower some of the regulatory levies presently added to bills.

Budgetary Constraints and Analyst Predictions

The administration will obtain the latest draft from the independent fiscal watchdog, the Office for Budget Responsibility, on the start of the week, which will clarify how much room there is for such actions.

The view from most analysts is that the Chancellor will have to announce higher taxes or expenditure reductions in order to fulfill her voluntary debt limits.

Earlier on Thursday, estimates showed there was a £22 billion deficit for the chancellor to address, which is at the more modest range of projections.

"It is a collective job between the central bank and the administration to bear down further on some of the sources of inflation," the Chancellor told the BBC in Washington, at the conferences of the IMF and World Bank.

Tax Commitments and Global Concerns

While much of the focus has been on expected tax increases, the Treasury chief said the most recent data from the OBR had not altered her commitment to election pledges not to increase rates on income tax, VAT or social security contributions.

She blamed an "uncertain world" with rising geopolitical and commercial tensions for the fiscal revenue measures, likely to be targeted on those "most able to pay."

International Economic Tensions

Referring to concerns about the UK's commercial links with the Asian nation she said: "The UK's security interests invariably come first."

Recent declaration by Chinese authorities to increase export controls on rare earths and other materials that are key for advanced tech manufacturing led US President the US President to suggest an extra 100% tariff on goods from the Asian country, raising the prospect of an full-scale trade war between the two economic giants.

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

Asked about accepting the American proposal to join its conflict with China, the Chancellor said she was "deeply worried" by Chinese measures and called on the Beijing authorities "not to put up barriers and restrict access."

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

"It is my opinion there are sectors where we must challenge China, but there are also important chances to export to China's economy, including financial services and other areas of the economic system. We've got to get that balance right."

The chancellor also stated she was working with international partners "regarding our own critical minerals strategy, so that we are less reliant."

NHS Medicine Costs and Investment

The Chancellor also admitted that the price the National Health Service pays for medicines could go up as a result of current negotiations with the Trump administration and its pharmaceutical firms, in return for lower tariffs and funding.

Some of the biggest global drug companies have said in recent statements that they are either pausing or scrapping operations in the UK, with several blaming the low prices they are obtaining.

Last month, the Science Minister said the price the NHS pays for medicines would need to increase to prevent businesses and drug research funding departing from the United Kingdom.

The Chancellor stated to the BBC: "We have seen as a result of the cost structure, that clinical trials, recent pharmaceuticals have not been provided in the UK in the extent that they are in other European countries."

"Our aim is to ensure that people getting treatment from the National Health Service are able to receive the top life-saving drugs in the globe. And so we are looking at this situation, and... aiming to secure increased funding into the UK."