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Chancellor Reeves has stated she is planning "targeted measures to address household expense pressures" in next month's financial statement.

In comments to media outlets, she emphasized that lowering price rises is a collective responsibility of both the government and the Bank of England.

The United Kingdom's inflation rate is expected to be the most elevated among the Group of Seven developed nations this year and next.

Possible Energy Bill Measures

Sources suggest the government could intervene to lower utility costs, such as by slashing the present 5% rate of value-added tax applied on energy supplies.

Another approach is to reduce some of the regulatory levies currently included in household expenses.

Fiscal Constraints and Analyst Predictions

The administration will receive the next assessment from the official forecaster, the OBR, on the start of the week, which will show how much space there is for these actions.

The expectation from most analysts is that Reeves will have to announce higher taxes or expenditure reductions in order to adhere to her self-imposed borrowing rules.

Earlier on the same day, analysis suggested there was a £22bn shortfall for the chancellor to fill, which is at the lower end of projections.

"It is a shared task between the central bank and the administration to further reduce some of the drivers of price increases," Reeves told reporters in Washington, at the conferences of the International Monetary Fund and global financial institution.

Tax Pledges and Global Concerns

While much of the focus has been on probable tax rises, the chancellor said the latest data from the OBR had not altered her vow to election pledges not to increase rates on income tax, VAT or social security contributions.

She blamed an "uncertain world" with growing geopolitical and trade concerns for the fiscal tax moves, likely to be focused on those "most able to pay."

International Economic Tensions

Commenting on worries about the United Kingdom's commercial links with China she said: "Our security interests always come first."

Recent declaration by Chinese authorities to strengthen export controls on rare earths and other materials that are key for advanced tech production led American leader Donald Trump to threaten an extra 100% tariff on goods from the Asian country, raising the possibility of an full-scale trade war between the two economic giants.

The American finance chief called the Chinese action "economic coercion" and "a global supply chain control attempt."

Asked about accepting the US offer to join its battle with China, the Chancellor said she was "very concerned" by China's actions and called on the Chinese government "to avoid restrictions and limit trade."

She said the action was "damaging for the global economy and generates further headwinds."

"It is my opinion there are sectors where we need to address China, but there are also important prospects to trade with China's economy, including banking sector and other areas of the economy. We've got to get that equilibrium right."

The Treasury chief also affirmed she was working with international partners "regarding our own critical minerals approach, so that we are reduced dependence."

NHS Medicine Costs and Funding

Reeves also recognized that the cost the National Health Service spends on medicines could go up as a consequence of ongoing talks with the Trump administration and its pharmaceutical firms, in exchange 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 insufficient payments they are receiving.

Recently, the Science Minister said the cost the health service pays for medicines would need to go up to stop firms and pharmaceutical investment departing from the United Kingdom.

Reeves stated to the BBC: "It has been observed because of the cost structure, that medical research, innovative medicines have not been provided in the UK in the way that they are in other European countries."

"The objective is to ensure that people getting treatment from the NHS are able to receive the best essential treatments in the world. And so we are reviewing this situation, and... aiming to attract increased capital into the UK."