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Chancellor Reeves has announced she is preparing "targeted action to tackle cost of living pressures" in next month's Budget.

During an interview with the BBC, she noted that lowering inflation is a shared task of both the administration and the central bank.

The UK's price growth is expected to be the most elevated among the G7 developed nations this calendar year and next.

Potential Energy Bill Interventions

It is understood the government could intervene to bring down energy bills, for instance by slashing the present 5% level of VAT applied on energy supplies.

Another approach is to cut some of the government charges currently included in bills.

Fiscal Limitations and Analyst Expectations

The administration will receive the latest report from the official forecaster, the OBR, on Monday, which will reveal how much room there is for these actions.

The view from most analysts is that the Chancellor will have to announce tax increases or budget cuts in order to meet her declared fiscal targets.

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

"It is a shared task between the Bank of England and the administration to further reduce some of the drivers of price increases," the Chancellor informed reporters in Washington, at the conferences of the IMF and World Bank.

Revenue Pledges and Global Concerns

While much of the attention has been on expected tax increases, the Treasury chief said the latest information from the fiscal watchdog had not altered her vow to election pledges not to increase tax levels on earnings tax, sales tax or National Insurance.

She blamed an "uncertain world" with growing international and trade concerns for the fiscal tax moves, likely to be targeted on those "with the broadest shoulders."

Global Economic Tensions

Referring to concerns about the UK's commercial links with China she said: "The UK's national security invariably take priority."

Recent declaration by China to increase export controls on rare earths and other resources that are crucial for advanced tech manufacturing led US President Donald Trump to propose an further 100% tariff on goods from China, increasing the possibility of an all-out commercial conflict between the two economic giants.

The US Treasury Secretary called the Chinese action "economic coercion" and "a global supply chain power grab."

Questioned on considering the US offer to participate in its battle with the Asian nation, Reeves said she was "deeply worried" by China's actions and encouraged the Chinese government "to avoid restrictions and restrict access."

She said the move was "harmful for the world economy and generates additional headwinds."

"In my view there are areas where we need to challenge Chinese policies, but there are also important opportunities to export to China's economy, including financial services and other sectors of the economic system. We've got to get that balance correct."

The Treasury chief also affirmed she was collaborating with G7 counterparts "regarding our own critical minerals plan, so that we are less reliant."

NHS Medicine Pricing and Funding

Reeves also recognized that the price the NHS pays for drugs could increase as a result of ongoing discussions with the Trump administration and its drugs companies, in exchange for reduced taxes and funding.

Some of the world's largest pharmaceutical manufacturers have said recently that they are either pausing or canceling operations in the UK, with some blaming the insufficient payments they are receiving.

Last month, the Science Minister said the cost the health service pays for drugs would need to rise to stop companies and pharmaceutical investment departing from the UK.

Reeves informed the BBC: "It has been observed because of the pricing regime, that clinical trials, innovative medicines have not been provided in the United Kingdom in the way that they are in other European countries."

"We want to make sure that patients receiving care from the National Health Service are able to access the top critical drugs in the globe. And so we are reviewing all of that, and... aiming to obtain additional funding into Britain."