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Chancellor Rachel Reeves has revealed she is planning "targeted action to tackle household expense challenges" in next month's financial statement.

Speaking to media outlets, she stated that lowering inflation is a joint duty of both the administration and the central bank.

The UK's price growth is projected to be the highest among the G7 industrialized countries this calendar year and next.

Potential Utility Cost Measures

Reports indicate the administration could intervene to reduce utility costs, for example by cutting the present 5% level of VAT charged on energy.

Another option is to lower some of the government charges presently added to bills.

Fiscal Limitations and Analyst Predictions

The administration will obtain the next draft from the official forecaster, the Office for Budget Responsibility, on the start of the week, which will show how much scope there is for such actions.

The view from the majority of economists is that the Chancellor will have to introduce tax increases or expenditure reductions in order to meet her declared borrowing rules.

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

"There's a joint task between the Bank of England and the administration to bear down further on some of the drivers of inflation," Reeves stated to reporters in Washington, at the conferences of the International Monetary Fund and World Bank.

Revenue Commitments and Global Concerns

While much of the attention has been on expected tax rises, the Treasury chief said the most recent figures from the fiscal watchdog had not altered her pledge to election pledges not to increase rates on income tax, VAT or National Insurance.

She blamed an "unpredictable world" with increasing geopolitical and commercial issues for the Budget revenue measures, probably to be targeted on those "with the broadest shoulders."

International Economic Tensions

Commenting on worries about the UK's trade ties with the Asian nation she said: "The UK's national security always take priority."

Last week's announcement by China to increase export controls on rare earths and other resources that are essential for high-technology production led American leader the US President to suggest an further 100% import tax on imports from China, raising the prospect of an all-out trade war between the two global powers.

The American finance chief labeled China's move "economic coercion" and "a international production control attempt."

Inquired about accepting the US offer to participate in its dispute with the Asian nation, Reeves said she was "deeply worried" by China's measures and encouraged the Beijing authorities "to avoid restrictions and restrict access."

She said the action was "bad for the global economy and creates additional headwinds."

"It is my opinion there are sectors where we need to confront Chinese policies, but there are also valuable prospects to sell into China's economy, including financial services and other sectors of the economy. We've got to achieve that balance right."

The Treasury chief also confirmed she was collaborating with international partners "on our own essential resources approach, so that we are reduced dependence."

NHS Drug Costs and Funding

Reeves also recognized that the cost the National Health Service pays for drugs could go up as a result of current discussions with the Trump administration and its pharmaceutical firms, in exchange for reduced taxes and investment.

Some of the world's largest drug companies have said lately that they are either delaying or canceling investments in the UK, with some blaming the modest returns they are getting.

Last month, the Science Minister said the cost the NHS spends on drugs would need to go up to stop companies and pharmaceutical investment departing from the United Kingdom.

Reeves told the BBC: "We have seen because of the pricing regime, that clinical trials, new drugs have not been available in the UK in the way that they are in other EU nations."

"Our aim is to make sure that patients getting care from the National Health Service are able to access the top life-saving medicines in the world. And so we are looking at all of that, and... seeking to attract additional capital into the UK."