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Chancellor Rachel Reeves has announced she is planning "focused measures to deal with cost of living challenges" 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 UK's inflation rate is forecast to be the most elevated among the G7 advanced economies this calendar year and next.

Potential Energy Cost Measures

It is understood the government could take action to reduce utility costs, for instance by cutting the present 5% level of value-added tax applied on energy.

An additional approach is to reduce some of the regulatory levies presently added to bills.

Budgetary Limitations and Expert Expectations

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 reveal how much scope there is for such measures.

The expectation from most economists is that the Chancellor will have to declare tax rises or budget cuts in order to meet her self-imposed debt limits.

Earlier on the same day, analysis suggested there was a £22 billion gap for the chancellor to address, which is at the lower end of forecasts.

"It is a joint task between the Bank of England and the government to bear down further on some of the sources of inflation," the Chancellor stated to the BBC in the US capital, at the annual meetings of the IMF and World Bank.

Revenue Pledges and Global Issues

While much of the focus has been on expected tax increases, the chancellor said the most recent data from the fiscal watchdog had not altered her pledge to election pledges not to increase tax levels on income tax, sales tax or National Insurance.

She blamed an "unpredictable world" with growing geopolitical and trade tensions for the fiscal tax moves, likely to be directed on those "with the broadest shoulders."

International Trade Disputes

Addressing concerns about the United Kingdom's commercial links with the Asian nation she said: "The UK's security interests always are paramount."

Last week's announcement by China to increase trade restrictions on rare earths and other materials that are essential for advanced tech manufacturing led US President the US President to threaten an further 100% tariff on goods from the Asian country, increasing the prospect of an all-out trade war between the two largest economies.

The US Treasury Secretary described China's action "economic coercion" and "a international production power grab."

Asked about accepting the US offer to join its conflict with China, the Chancellor said she was "very concerned" by Chinese measures and called on the Chinese government "to avoid restrictions and restrict access."

She said the move was "bad for the world economy and generates further obstacles."

"In my view there are fields where we must address China, but there are also important opportunities to trade with Chinese markets, including banking sector and other sectors of the economic system. We've got to get that balance right."

The chancellor also confirmed she was cooperating with other major economies "on our own critical minerals plan, so that we are less reliant."

NHS Medicine Costs and Investment

The Chancellor also acknowledged 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 return for lower tariffs and funding.

Some of the biggest global drug companies have said lately that they are either pausing or scrapping investments in the UK, with several attributing the low prices they are getting.

Recently, the Science Minister said the cost the health service spends on medicines would must go up to halt companies and pharmaceutical investment departing from the UK.

Reeves told the BBC: "It has been observed due to the cost structure, that clinical trials, new drugs have not been available in the United Kingdom in the way that they are in other European countries."

"The objective is to ensure that people getting treatment from the National Health Service are able to access the top critical drugs in the globe. And so we are looking at these issues, and... seeking to secure increased investment into Britain."