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Chancellor Rachel Reeves has announced she is preparing "specific measures to deal with household expense pressures" in the forthcoming financial statement.

During an interview with media outlets, she emphasized that lowering inflation is a collective task of both the government and the central bank.

The United Kingdom's inflation rate is projected to be the most elevated among the G7 developed nations this year and next.

Potential Utility Cost Measures

It is understood the government could take action to reduce energy bills, for example by reducing the current 5% level of value-added tax charged on energy.

A further option is to lower some of the government charges presently included in household expenses.

Fiscal Constraints and Expert Expectations

The government will obtain the latest assessment from the official forecaster, the OBR, on the start of the week, which will reveal how much scope there is for such actions.

The view from the majority of experts is that the Chancellor will have to announce higher taxes or budget cuts in order to fulfill her self-imposed debt limits.

Previously on Thursday, analysis indicated there was a £22bn shortfall for the Treasury chief to resolve, which is at the more modest range of expectations.

"It is a shared responsibility between the Bank of England and the government to further reduce some of the drivers of price increases," Reeves informed reporters in the US capital, at the yearly gatherings of the International Monetary Fund and global financial institution.

Tax Pledges and Global Concerns

While much of the attention has been on probable tax increases, the chancellor said the most recent figures from the fiscal watchdog had not changed her pledge to election pledges not to increase tax levels on earnings tax, sales tax or National Insurance.

She blamed an "uncertain global environment" with increasing geopolitical and trade issues for the Budget tax moves, likely to be targeted on those "most able to pay."

Global Trade Disputes

Addressing worries about the UK's economic relations with the Asian nation she said: "The UK's national security invariably take priority."

Last week's statement by China to strengthen export controls on critical minerals and other materials that are crucial for advanced tech production led American leader the US President to suggest an extra 100% tariff on goods from the Asian country, increasing the possibility of an full-scale trade war between the two global powers.

The American finance chief labeled the Chinese action "commercial pressure" and "a international production power grab."

Questioned on accepting the US offer to participate in its conflict with the Asian nation, Reeves said she was "extremely troubled" by China's actions and encouraged the Beijing authorities "to avoid restrictions and restrict access."

She said the decision was "harmful for the global economy and creates additional challenges."

"It is my opinion there are areas where we must address Chinese policies, but there are also important chances to trade with China's economy, including financial services and other sectors of the economic system. We've got to maintain that balance appropriate."

The Treasury chief also confirmed she was collaborating with other major economies "regarding our own critical minerals approach, so that we are less reliant."

Health Service Medicine Costs and Funding

Reeves also acknowledged that the cost the NHS spends on drugs could go up as a result of ongoing talks with the Trump administration and its drugs companies, in return for lower tariffs and investment.

Some of the biggest global drug companies have said in recent statements that they are either delaying or scrapping projects in the United Kingdom, with some blaming the insufficient payments they are getting.

Last month, the government science advisor said the price the health service pays for medicines would must rise to prevent businesses and pharmaceutical investment leaving the UK.

Reeves informed media: "We have seen as a result of the cost structure, that medical research, recent pharmaceuticals have not been available in the United Kingdom in the manner that they are in other continental states."

"Our aim is to ensure that individuals getting care from the NHS are can receive the finest life-saving drugs in the world. And so we are reviewing all of that, and... seeking to obtain additional investment into the UK."