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Treasury head Rachel Reeves has stated she is planning "targeted action to deal with household expense pressures" in next month's financial statement.

During an interview with the BBC, she stated that reducing inflation is a collective responsibility 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 year and next.

Possible Utility Cost Measures

It is understood the government could intervene to lower utility costs, for instance by slashing the current 5% rate of VAT applied on energy.

A further possibility is to reduce some of the regulatory levies presently added to household expenses.

Fiscal Constraints and Analyst Expectations

The government will receive the next draft from the independent fiscal watchdog, the Office for Budget Responsibility, on the start of the week, which will clarify how much scope there is for these actions.

The view from the majority of experts is that Reeves will have to announce higher taxes or budget cuts in order to fulfill her voluntary borrowing rules.

Earlier on Thursday, calculations showed there was a £22 billion deficit for the chancellor to fill, which is at the more modest range of projections.

"It is a joint responsibility between the Bank of England and the administration to continue tackling some of the drivers of price increases," Reeves told reporters in Washington, at the conferences of the International Monetary Fund and global financial institution.

Revenue Commitments and International Issues

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

She blamed an "uncertain world" with rising international and commercial tensions for the fiscal tax moves, likely to be directed on those "most able to pay."

Global Economic Tensions

Addressing worries about the UK's economic relations with China she said: "The UK's security interests invariably come first."

Recent declaration by Chinese authorities to increase trade restrictions on critical minerals and other resources that are crucial for high-technology manufacturing led American leader Donald Trump to suggest an additional 100% tariff on goods from China, raising the risk of an all-out commercial conflict between the two global powers.

The US Treasury Secretary labeled the Chinese move "commercial pressure" and "a global supply chain power grab."

Inquired about considering the American proposal to join its conflict with the Asian nation, the Chancellor said she was "deeply worried" by China's actions and called on the Chinese government "to avoid restrictions and limit trade."

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

"It is my opinion there are sectors where we must confront China, but there are also significant opportunities to trade with China's economy, including banking sector and other areas of the economic system. We've got to get that balance right."

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

NHS Medicine Costs and Funding

Reeves also acknowledged that the price the NHS pays for drugs could go up as a consequence of ongoing negotiations with the Trump administration and its drugs companies, in return for reduced taxes and investment.

Some of the world's largest drug companies have said in recent statements that they are either halting or canceling operations in the UK, with some blaming the low prices they are getting.

Recently, the Science Minister said the price the health service spends on drugs would have to rise to stop businesses and pharmaceutical investment leaving the United Kingdom.

Reeves informed the BBC: "It has been observed because of the cost structure, that drug testing, recent pharmaceuticals have not been offered in the United Kingdom in the way that they are in other continental states."

"We want to make sure that people receiving care from the NHS are can access the best essential medicines in the world. And so we are reviewing these issues, and... seeking to attract additional investment into Britain."