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Chancellor Rachel Reeves has stated she is preparing "focused measures to tackle household expense challenges" in next month's Budget.

In comments to the BBC, she noted that lowering inflation is a shared duty of both the government and the Bank of England.

The United Kingdom's price growth is projected to be the highest among the G7 industrialized countries this calendar year and next.

Potential Energy Cost Interventions

Reports indicate the government could take action to reduce energy bills, for example by reducing the current 5% rate of value-added tax applied on energy.

Another option is to lower some of the regulatory levies currently included in household expenses.

Fiscal Constraints and Expert Expectations

The government will obtain the latest report from the official forecaster, the OBR, on Monday, which will clarify how much scope there is for these actions.

The consensus from most experts is that Reeves will have to introduce tax increases or spending cuts in order to adhere to her declared debt limits.

Previously on the same day, estimates showed there was a £22 billion deficit for the chancellor to address, which is at the lower end of projections.

"It is a collective responsibility between the central bank and the administration to bear down further on some of the drivers of inflation," Reeves informed the BBC in the US capital, at the annual meetings of the IMF and global financial institution.

Revenue Pledges and Global Issues

While a great deal of the attention has been on probable tax increases, the Treasury chief said the latest information from the OBR had not altered her vow to manifesto promises not to increase tax levels on earnings tax, VAT or social security contributions.

She blamed an "unpredictable global environment" with increasing geopolitical and commercial issues for the Budget tax moves, likely to be targeted on those "wealthiest."

Global Economic Tensions

Addressing apprehensions about the UK's commercial links with China she said: "Our national security invariably come first."

Last week's announcement by China to tighten export controls on critical minerals and other resources that are key for advanced tech manufacturing led US President Donald Trump to suggest an extra 100% import tax on goods from the Asian country, increasing the risk of an full-scale trade war between the two largest economies.

The US Treasury Secretary described China's action "commercial pressure" and "a global supply chain power grab."

Inquired about accepting the American proposal to participate in its battle with China, Reeves said she was "extremely troubled" by China's actions and called on the Chinese government "to avoid restrictions and limit trade."

She said the action was "bad for the global economy and creates further headwinds."

"It is my opinion there are sectors where we need to confront Chinese policies, but there are also important chances to trade with Chinese markets, including banking sector and other sectors of the economic system. We've got to achieve that equilibrium appropriate."

The Treasury chief also affirmed she was cooperating with G7 counterparts "on our own critical minerals approach, so that we are more independent."

Health Service Drug Pricing and Funding

The Chancellor also acknowledged that the cost the NHS spends on drugs could go up as a result of current discussions with the US government and its drugs companies, in return for lower tariffs and capital.

A number of the world's largest pharmaceutical manufacturers have said recently that they are either pausing or scrapping investments in the United Kingdom, with several blaming the low prices they are getting.

Last month, the government science advisor said the cost the health service pays for drugs would have to rise to halt businesses and drug research funding leaving the UK.

Reeves informed media: "It has been observed because of the payment system, that clinical trials, new drugs have not been available in the United Kingdom in the extent that they are in other European countries."

"We want to make sure that patients receiving treatment from the NHS are can receive the top essential medicines in the globe. And so we are reviewing these issues, and... aiming to obtain more capital into Britain."