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Treasury head Rachel Reeves has revealed she is planning "targeted steps to deal with household expense challenges" in next month's Budget.

Speaking to the BBC, she noted that curbing inflation is a shared duty of both the administration and the central bank.

The United Kingdom's price growth is expected to be the highest among the G7 industrialized countries this year and the following year.

Potential Utility Cost Interventions

Reports indicate the administration could take action to bring down energy bills, for example by cutting the present 5% rate of value-added tax charged on energy.

An additional possibility is to reduce some of the regulatory levies presently included in household expenses.

Fiscal Limitations and Expert Predictions

The government will receive the next draft from the official forecaster, the OBR, on Monday, which will reveal how much space there is for such measures.

The expectation from the majority of experts is that Reeves will have to announce tax increases or spending cuts in order to adhere to her declared borrowing rules.

Earlier on the same day, estimates suggested there was a £22 billion deficit for the Treasury chief to address, which is at the lower end of forecasts.

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

Revenue Pledges and Global Issues

While a great deal of the focus has been on likely tax increases, the chancellor said the most recent information from the fiscal watchdog had not altered her pledge to campaign commitments not to raise tax levels on earnings tax, VAT or National Insurance.

She attributed an "unpredictable global environment" with increasing international and trade tensions for the Budget tax moves, likely to be focused on those "with the broadest shoulders."

International Economic Disputes

Commenting on worries about the United Kingdom's trade ties with China she said: "The UK's security interests invariably come first."

Recent statement by China to tighten trade restrictions on rare earths and other resources that are crucial for high-technology production led American leader the US President to propose an further 100% tariff on goods from the Asian country, raising the risk of an all-out commercial conflict between the two economic giants.

The American finance chief labeled China's decision "commercial pressure" and "a international production control attempt."

Inquired about accepting the American proposal to join its conflict with China, Reeves said she was "extremely troubled" by Chinese measures and called on the Chinese government "not to put up barriers and limit trade."

She said the move was "damaging for the world economy and generates additional obstacles."

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

The Treasury chief also confirmed she was collaborating with G7 counterparts "on our own essential resources approach, so that we are less reliant."

Health Service Drug Costs and Funding

The Chancellor also recognized that the cost the NHS spends on medicines could increase as a consequence of ongoing discussions with the US government and its pharmaceutical firms, in exchange for lower tariffs and funding.

Some of the biggest global pharmaceutical manufacturers have said lately that they are either delaying or scrapping projects in the United Kingdom, with some blaming the modest returns they are obtaining.

Recently, the Science Minister said the price the NHS pays for drugs would have to rise to prevent companies and pharmaceutical investment departing from the UK.

The Chancellor informed the BBC: "We have seen because of the cost structure, that clinical trials, new drugs have not been offered in the United Kingdom in the extent that they are in other continental states."

"The objective is to make sure that people getting treatment from the NHS are able to receive the top life-saving treatments in the world. And so we are reviewing this situation, and... looking to attract more capital into the UK."