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Chancellor Rachel Reeves has revealed she is planning "targeted steps to deal with household expense challenges" in the forthcoming Budget.

During an interview with media outlets, she emphasized that curbing inflation is a joint task of both the government and the Bank of England.

The UK's inflation rate is forecast to be the highest among the Group of Seven industrialized countries this calendar year and the following year.

Possible Utility Bill Measures

It is understood the government could intervene to bring down utility costs, for example by cutting the present 5% level of VAT applied on energy supplies.

An additional option is to reduce some of the government charges presently added to household expenses.

Budgetary Constraints and Expert Expectations

The government will receive the latest report from the independent fiscal watchdog, the OBR, on Monday, which will reveal how much space there is for these measures.

The expectation from most economists is that Reeves will have to announce higher taxes or expenditure reductions in order to adhere to her declared debt limits.

Previously on the same day, analysis indicated there was a £22 billion deficit for the Treasury chief to resolve, which is at the lower end of forecasts.

"There's a shared task between the Bank of England and the administration to further reduce some of the drivers of price increases," Reeves told reporters in Washington, at the annual meetings of the International Monetary Fund and global financial institution.

Tax Pledges and International Concerns

While much of the focus has been on expected tax rises, the Treasury chief said the most recent data from the OBR had not altered her pledge to election pledges not to increase tax levels on earnings tax, sales tax or social security contributions.

She attributed an "uncertain global environment" with rising geopolitical and trade issues for the fiscal tax moves, likely to be focused on those "with the broadest shoulders."

International Trade Disputes

Referring to worries about the United Kingdom's commercial links with the Asian nation she said: "The UK's security interests invariably take priority."

Last week's declaration by Chinese authorities to strengthen export controls on critical minerals and other materials that are key for high-technology production led American leader Donald Trump to threaten an further 100% import tax on imports from the Asian country, increasing the risk of an full-scale commercial conflict between the two largest economies.

The American finance chief labeled the Chinese decision "commercial pressure" and "a global supply chain power grab."

Asked about accepting the American proposal to participate in its conflict with China, the Chancellor said she was "deeply worried" by Chinese measures and called on the Beijing authorities "to avoid restrictions and restrict access."

She said the decision was "bad for the world economy and creates additional challenges."

"I believe there are areas where we should challenge China, but there are also important chances to sell into China's economy, including banking sector and other sectors of the economic system. We've got to maintain that balance correct."

The Treasury chief also affirmed she was collaborating with other major economies "on our own critical minerals strategy, so that we are more independent."

NHS Medicine Costs and Investment

The Chancellor also acknowledged that the cost the NHS pays for medicines could rise as a consequence of ongoing discussions with the Trump administration and its drugs companies, in return for reduced taxes and investment.

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

Last month, the Science Minister said the cost the NHS pays for medicines would need to go up to halt firms and drug research funding leaving the United Kingdom.

The Chancellor told media: "We have seen as a result of the payment system, that medical research, innovative medicines have not been provided in the UK in the way that they are in other European countries."

"We want to ensure that people getting treatment from the NHS are can access the finest life-saving drugs in the world. And so we are examining all of that, and... looking to secure increased funding into Britain."