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Chancellor Rachel Reeves has announced she is planning "focused measures to tackle household expense challenges" in the forthcoming financial statement.

During an interview with the BBC, she stated that curbing inflation is a shared task of both the government and the central bank.

The UK's inflation rate is forecast to be the highest among the G7 advanced economies this year and the following year.

Potential Utility Bill Interventions

Sources suggest the government could intervene to bring down energy bills, for example by reducing the current 5% level of VAT applied on energy.

An additional possibility is to reduce some of the policy costs currently included in household expenses.

Budgetary Limitations and Expert Predictions

The government will obtain the next assessment from the independent fiscal watchdog, the OBR, on Monday, which will clarify how much space there is for these measures.

The view from most experts is that Reeves will have to introduce tax increases or expenditure reductions in order to adhere to her voluntary fiscal targets.

Earlier on Thursday, calculations showed there was a £22bn gap for the Treasury chief to address, which is at the lower end of expectations.

"There's a shared task between the Bank of England and the administration to bear down further on some of the sources of price increases," the Chancellor informed the BBC in Washington, at the conferences of the IMF and global financial institution.

Tax Pledges and International Issues

While a great deal of the attention has been on probable tax increases, the Treasury chief said the latest information from the fiscal watchdog had not altered her commitment to manifesto promises not to increase tax levels on income tax, sales tax or social security contributions.

She attributed an "uncertain world" with rising international and trade concerns for the fiscal tax moves, likely to be focused on those "wealthiest."

Global Trade Disputes

Addressing apprehensions about the United Kingdom's commercial links with China she said: "The UK's security interests always take priority."

Last week's statement by China to tighten trade restrictions on critical minerals and other resources that are crucial for advanced tech manufacturing led US President the US President to propose an extra 100% import tax on imports from the Asian country, raising the possibility of an all-out trade war between the two global powers.

The US Treasury Secretary described China's decision "economic coercion" and "a global supply chain power grab."

Questioned on considering the American proposal to join its conflict with the Asian nation, the Chancellor said she was "deeply worried" by Chinese measures and urged the Chinese government "not to put up barriers and limit trade."

She said the decision was "damaging for the world economy and creates further headwinds."

"It is my opinion there are sectors where we should address Chinese policies, but there are also valuable opportunities to trade with Chinese markets, including banking sector and other sectors of the economy. We've got to maintain that balance right."

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

Health Service Drug Costs and Investment

The Chancellor also recognized that the price the National Health Service spends on pharmaceuticals could go up as a consequence of ongoing talks with the US government and its pharmaceutical firms, in return for lower tariffs and investment.

A number of the biggest global drug companies have said lately that they are either delaying or scrapping investments in the UK, with some attributing the low prices they are obtaining.

Recently, the government science advisor said the cost the NHS spends on medicines would have to increase to stop firms and drug research funding leaving the United Kingdom.

Reeves informed media: "We have seen due to the payment system, that medical research, recent pharmaceuticals have not been offered in the United Kingdom in the extent that they are in other EU nations."

"The objective is to ensure that patients getting treatment from the NHS are can access the top critical medicines in the world. And so we are examining all of that, and... seeking to attract more capital into the UK."