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Chancellor Rachel Reeves has revealed she is preparing "targeted steps to tackle household expense challenges" in next month's Budget.

During an interview with the BBC, she emphasized that reducing price rises is a shared task of both the government and the central bank.

The UK's price growth is expected to be the highest among the Group of Seven advanced economies this calendar year and next.

Potential Energy Cost Interventions

It is understood the administration could take action to bring down energy bills, for example by reducing the present 5% level of VAT charged on energy.

Another possibility is to lower some of the government charges presently added to household expenses.

Fiscal Limitations and Expert Expectations

The administration will obtain the next assessment from the official forecaster, the Office for Budget Responsibility, on Monday, which will clarify how much scope there is for such actions.

The view from the majority of economists is that the Chancellor will have to announce higher taxes or expenditure reductions in order to meet her declared debt limits.

Earlier on the same day, calculations showed there was a twenty-two billion pound deficit for the chancellor to fill, which is at the lower end of forecasts.

"There's a joint job between the central bank and the government to bear down further on some of the drivers of inflation," the Chancellor informed the BBC in the US capital, at the annual meetings of the International Monetary Fund and World Bank.

Revenue Commitments and Global Concerns

While a great deal of the focus has been on expected tax rises, the chancellor said the most recent information from the OBR had not changed her commitment to campaign commitments not to raise rates on earnings tax, VAT or social security contributions.

She attributed an "uncertain world" with increasing international and commercial concerns for the Budget revenue measures, likely to be directed on those "with the broadest shoulders."

Global Economic Tensions

Referring to concerns about the United Kingdom's trade ties with China she said: "Our security interests invariably come first."

Last week's declaration by Chinese authorities to strengthen export controls on rare earths and other materials that are essential for advanced tech manufacturing led US President Donald Trump to suggest an extra 100% tariff on goods from the Asian country, raising the risk of an full-scale trade war between the two global powers.

The American finance chief described China's action "economic coercion" and "a global supply chain control attempt."

Inquired about considering the US offer to participate in its battle with the Asian nation, the Chancellor said she was "deeply worried" by China's actions and urged the Beijing authorities "to avoid restrictions and restrict access."

She said the decision was "bad for the global economy and generates further obstacles."

"In my view there are sectors where we should challenge Chinese policies, but there are also significant opportunities to trade with Chinese markets, including financial services and other areas of the economy. We've got to achieve that balance right."

The chancellor also stated she was collaborating with other major economies "on our own essential resources strategy, so that we are less reliant."

NHS Medicine Costs and Investment

Reeves also admitted that the cost the National Health Service pays for pharmaceuticals could go up as a consequence of ongoing negotiations with the US government and its drugs companies, in return for lower tariffs and funding.

A number of the biggest global drug companies have said in recent statements that they are either halting or scrapping projects in the United Kingdom, with several blaming the modest returns they are receiving.

Last month, the government science advisor said the price the health service spends on medicines would have to rise to prevent firms and pharmaceutical investment departing from the United Kingdom.

Reeves stated to the BBC: "It has been observed as a result of the payment system, that drug testing, new drugs have not been available in the UK in the extent that they are in other continental states."

"We want to make sure that patients getting treatment from the NHS are able to access the best life-saving medicines in the globe. And so we are reviewing these issues, and... looking to attract additional funding into the UK."