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Chancellor Rachel Reeves has stated she is planning "targeted action to address cost of living pressures" in next month's Budget.

During an interview with media outlets, she noted that curbing inflation is a collective task of both the administration and the central bank.

The United Kingdom's inflation rate is projected to be the highest among the G7 industrialized countries this year and the following year.

Possible Utility Bill Interventions

Reports indicate the administration could intervene to bring down utility costs, for instance by cutting the present 5% level of value-added tax charged on energy.

Another option is to cut some of the policy costs currently added to bills.

Fiscal Limitations and Analyst Predictions

The administration will obtain the latest draft from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will reveal how much room there is for such measures.

The expectation from the majority of analysts is that the Chancellor will have to announce tax increases or expenditure reductions in order to adhere to her self-imposed fiscal targets.

Earlier on the same day, calculations showed there was a £22bn shortfall for the Treasury chief to address, which is at the more modest range of forecasts.

"It is a joint responsibility between the central bank and the administration to bear down further on some of the causes of inflation," the Chancellor stated to reporters in Washington, at the yearly gatherings of the IMF and global financial institution.

Revenue Commitments and International Concerns

While a great deal of the attention has been on probable tax rises, the Treasury chief said the most recent figures from the OBR had not altered her commitment to campaign commitments not to raise rates on income tax, sales tax or National Insurance.

She blamed an "uncertain global environment" with increasing international and trade issues for the Budget revenue measures, likely to be focused on those "wealthiest."

International Trade Tensions

Addressing concerns about the UK's commercial links with China she said: "Our security interests invariably take priority."

Recent statement by China to increase trade restrictions on rare earths and other resources that are essential for high-technology manufacturing led American leader the US President to threaten an additional 100% import tax on imports from China, increasing the prospect of an all-out commercial conflict between the two largest economies.

The US Treasury Secretary called the Chinese action "commercial pressure" and "a international production power grab."

Asked about accepting the American proposal to participate in its conflict with China, Reeves said she was "very concerned" by China's actions and urged the Chinese government "not to put up barriers and limit trade."

She said the decision was "harmful for the international commerce and generates further headwinds."

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

The Treasury chief also affirmed she was cooperating with international partners "regarding our own critical minerals plan, so that we are more independent."

Health Service Medicine Pricing and Funding

The Chancellor also admitted that the price the National Health Service spends on medicines could rise as a consequence of current talks with the US government and its drugs companies, in exchange for lower tariffs and investment.

Some of the biggest global pharmaceutical manufacturers have said lately that they are either halting or scrapping projects in the UK, with several attributing the insufficient payments they are obtaining.

Recently, the government science advisor said the price the NHS spends on drugs would have to go up to stop companies and drug research funding leaving the UK.

The Chancellor informed media: "We have seen because of the pricing regime, that clinical trials, innovative medicines have not been offered in the United Kingdom in the way that they are in other continental states."

"Our aim is to ensure that people getting treatment from the National Health Service are able to receive the best essential treatments in the world. And so we are reviewing all of that, and... seeking to obtain more capital into Britain."