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Treasury head Rachel Reeves has revealed she is preparing "focused steps to tackle household expense challenges" in the forthcoming Budget.

In comments to the BBC, she stated that curbing inflation is a joint task of both the government and the central bank.

The United Kingdom's price growth is forecast to be the highest among the Group of Seven advanced economies this calendar year and the following year.

Possible Energy Cost Measures

Reports indicate the administration could intervene to reduce energy bills, such as by slashing the present 5% level of value-added tax charged on energy.

A further possibility is to cut some of the regulatory levies presently included in household expenses.

Budgetary Limitations and Analyst Expectations

The government will receive the latest assessment from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will reveal how much room there is for these measures.

The expectation from most analysts is that Reeves will have to declare higher taxes or budget cuts in order to fulfill her voluntary fiscal targets.

Earlier on Thursday, estimates indicated there was a £22bn shortfall 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 government to continue tackling some of the drivers of price increases," Reeves stated to the BBC in the US capital, at the yearly gatherings of the IMF and World Bank.

Revenue Pledges and Global Concerns

While a great deal of the focus has been on probable tax rises, the chancellor said the most recent data from the OBR had not altered her pledge to election pledges not to raise rates on earnings tax, VAT or social security contributions.

She attributed an "uncertain world" with increasing international and trade issues for the Budget tax moves, likely to be targeted on those "wealthiest."

Global Economic Disputes

Addressing apprehensions about the UK's commercial links with China she said: "Our national security always are paramount."

Last week's announcement by China to increase trade restrictions on rare earths and other materials that are crucial for high-technology manufacturing led US President the US President to suggest an further 100% import tax on goods from the Asian country, increasing the possibility of an all-out commercial conflict between the two economic giants.

The US Treasury Secretary described China's action "economic coercion" and "a global supply chain control attempt."

Asked about considering the American proposal to participate in its battle with China, the Chancellor said she was "extremely troubled" by Chinese actions and called on the Beijing authorities "not to put up barriers and restrict access."

She said the move was "bad for the international commerce and causes further challenges."

"I believe there are fields where we should challenge Chinese policies, but there are also valuable chances to sell into China's economy, including financial services and other sectors of the economic system. We've got to achieve that equilibrium appropriate."

The Treasury chief also confirmed she was working with international partners "regarding our own essential resources approach, so that we are less reliant."

NHS Medicine Costs and Investment

The Chancellor also recognized that the price the National Health Service spends on medicines could increase as a result of ongoing talks with the Trump administration and its pharmaceutical firms, in return for reduced taxes and investment.

Some of the world's largest drug companies have said in recent statements that they are either halting or abandoning projects in the United Kingdom, with some blaming the low prices they are getting.

Recently, the government science advisor said the cost the NHS spends on drugs would need to go up to stop companies and drug research funding leaving the UK.

The Chancellor informed the BBC: "It has been observed due to the pricing regime, that drug testing, new drugs have not been provided in the United Kingdom in the extent that they are in other EU nations."

"Our aim is to make sure that people getting treatment from the NHS are able to obtain the finest life-saving treatments in the globe. And so we are looking at this situation, and... looking to attract additional capital into the UK."