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Treasury head Rachel Reeves has announced she is planning "targeted action to deal with household expense challenges" in the forthcoming financial statement.

In comments to media outlets, she emphasized that reducing price rises is a shared task of both the government and the Bank of England.

The United Kingdom's price growth is projected to be the highest among the G7 advanced economies this year and next.

Potential Energy Bill Interventions

It is understood the government could intervene to bring down utility costs, for instance by cutting the current 5% rate of value-added tax charged on energy supplies.

A further option is to cut some of the government charges currently added to household expenses.

Fiscal Constraints and Analyst Expectations

The government will receive the latest report from the official forecaster, the OBR, on Monday, which will reveal how much room there is for such actions.

The view from most economists is that Reeves will have to declare tax rises or budget cuts in order to adhere to her declared borrowing rules.

Previously on Thursday, estimates showed there was a £22bn deficit for the chancellor to fill, which is at the more modest range of forecasts.

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

Tax Commitments and Global Concerns

While much of the focus has been on expected tax increases, the Treasury chief said the latest data from the fiscal watchdog had not altered her vow to campaign commitments not to increase rates on income tax, sales tax or social security contributions.

She blamed an "uncertain world" with increasing international and trade issues for the Budget revenue measures, probably to be focused on those "with the broadest shoulders."

International Economic Disputes

Addressing apprehensions about the UK's trade ties with the Asian nation she said: "Our national security always come first."

Recent announcement by Chinese authorities to strengthen export controls on critical minerals and other resources that are key for advanced tech production led US President the US President to suggest an extra 100% import tax on imports from China, increasing the possibility of an all-out trade war between the two global powers.

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

Inquired about accepting the American proposal to participate in its conflict with China, the Chancellor said she was "deeply worried" by Chinese actions and called on the Chinese government "to avoid restrictions and restrict access."

She said the move was "bad for the world economy and creates additional headwinds."

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

The chancellor also affirmed she was cooperating with international partners "on our own critical minerals strategy, so that we are reduced dependence."

Health Service Drug Pricing and Funding

Reeves also acknowledged that the price the NHS spends on medicines could increase as a result of current negotiations with the Trump administration and its drugs companies, in return for reduced taxes and capital.

A number of the biggest global drug companies have said recently that they are either delaying or scrapping projects in the UK, with some blaming the low prices they are receiving.

Last month, the Science Minister said the cost the NHS spends on drugs would must increase to prevent businesses and pharmaceutical investment leaving the UK.

Reeves stated to the BBC: "It has been observed as a result of the payment system, that medical research, innovative medicines have not been provided in the UK in the extent that they are in other EU nations."

"The objective is to make sure that individuals receiving treatment from the National Health Service are able to access the best critical drugs in the world. And so we are looking at all of that, and... looking to obtain more capital into Britain."