🔗 Share this article Chancellor Rachel Reeves Plans Specific Action on Living Costs in Upcoming Budget Treasury head Rachel Reeves has stated she is preparing "specific measures to tackle cost of living pressures" in next month's Budget. During an interview with the BBC, she noted that curbing price rises is a joint responsibility of both the government and the Bank of England. The UK's inflation rate is forecast to be the highest among the G7 advanced economies this calendar year and next. Potential Energy Bill Measures Sources suggest the government could take action to bring down utility costs, for instance by cutting the present 5% level of value-added tax applied on energy supplies. A further possibility is to lower some of the government charges presently included in bills. Budgetary Limitations and Expert Expectations The government will receive the latest assessment from the official forecaster, the Office for Budget Responsibility, on Monday, which will reveal how much scope there is for such measures. The expectation from most analysts is that the Chancellor will have to announce tax increases or spending cuts in order to fulfill her voluntary fiscal targets. Earlier on Thursday, analysis indicated there was a twenty-two billion pound shortfall for the Treasury chief to fill, which is at the more modest range of forecasts. "It is a shared responsibility between the Bank of England and the administration to bear down further on some of the sources of inflation," Reeves informed the BBC in Washington, at the conferences of the International Monetary Fund and World Bank. Tax Commitments and Global 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 changed her vow to campaign commitments not to raise rates on income tax, VAT or social security contributions. She blamed an "unpredictable world" with growing international and commercial tensions for the Budget revenue measures, probably to be focused on those "most able to pay." International Trade Disputes Referring to apprehensions about the UK's trade ties with the Asian nation she said: "Our security interests always come first." Recent statement by China to increase export controls on critical minerals and other materials that are key for high-technology manufacturing led American leader Donald Trump to suggest an extra 100% tariff on imports from the Asian country, increasing the prospect of an all-out commercial conflict between the two largest economies. The American finance chief called China's decision "commercial pressure" and "a international production control attempt." Questioned on considering the American proposal to join its battle with the Asian nation, Reeves said she was "extremely troubled" by Chinese measures and called on the Beijing authorities "to avoid restrictions and limit trade." She said the action was "damaging for the international commerce and creates additional challenges." "It is my opinion there are areas where we should 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 achieve that equilibrium right." The Treasury chief also confirmed she was cooperating with G7 counterparts "on our own critical minerals plan, so that we are less reliant." NHS Medicine Pricing and Investment Reeves also acknowledged that the cost the NHS pays for drugs could rise as a consequence of ongoing talks with the Trump administration and its drugs companies, in return for lower tariffs and funding. Some of the biggest global drug companies have said recently that they are either pausing or scrapping investments in the United Kingdom, with some blaming the insufficient payments they are obtaining. Recently, the Science Minister said the cost the NHS spends on drugs would must increase to stop firms and drug research funding departing from the United Kingdom. Reeves informed media: "We have seen because of the payment system, that clinical trials, new drugs have not been offered in the UK in the manner that they are in other EU nations." "The objective is to make sure that patients getting treatment from the NHS are able to access the top essential treatments in the globe. And so we are reviewing this situation, and... seeking to secure more funding into the UK."