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Treasury head Rachel Reeves has announced she is planning "targeted action to address household expense issues" in the upcoming financial statement.

Speaking to the BBC, she emphasized that lowering price rises is a joint responsibility of both the government and the central bank.

The UK's inflation rate is forecast to be the most elevated among the G7 developed nations this year and the following year.

Potential Energy Bill Measures

It is understood the government could take action to bring down energy bills, such as by slashing the present 5% rate of value-added tax charged on energy.

A further option is to cut some of the policy costs presently added to household expenses.

Fiscal Constraints and Analyst Expectations

The government will receive the next assessment from the official forecaster, the OBR, on Monday, which will reveal how much room there is for these measures.

The view from the majority of experts is that Reeves will have to declare higher taxes or expenditure reductions in order to adhere to her self-imposed fiscal targets.

Previously on the same day, calculations suggested there was a £22 billion shortfall for the chancellor to address, which is at the lower end of forecasts.

"It is a collective task between the Bank of England and the administration to further reduce some of the sources of inflation," Reeves stated to the BBC in the US capital, at the yearly gatherings of the International Monetary Fund and global financial institution.

Revenue Pledges and Global Concerns

While much of the attention has been on likely tax rises, the chancellor said the latest information from the fiscal watchdog had not changed her pledge to election pledges not to increase rates on income tax, VAT or social security contributions.

She attributed an "unpredictable global environment" with rising international and trade issues for the Budget tax moves, likely to be targeted on those "most able to pay."

Global Trade Disputes

Addressing concerns about the United Kingdom's commercial links with China she said: "Our national security always come first."

Last week's declaration by China to increase trade restrictions on critical minerals and other materials that are essential for high-technology manufacturing led American leader the US President to suggest an further 100% import tax on goods from China, increasing the risk of an all-out commercial conflict between the two largest economies.

The American finance chief described the Chinese move "economic coercion" and "a international production power grab."

Asked about considering the US offer to join its conflict with China, the Chancellor said she was "very concerned" by Chinese measures and encouraged the Chinese government "not to put up barriers and limit trade."

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

"In my view there are sectors where we need to address China, but there are also important prospects to sell into China's economy, including banking sector and other areas of the economic system. We've got to achieve that balance correct."

The Treasury chief also confirmed she was cooperating with international partners "regarding our own critical minerals strategy, so that we are reduced dependence."

Health Service Medicine Pricing and Funding

Reeves also recognized that the price the National Health Service spends on pharmaceuticals could increase as a result of current negotiations with the Trump administration and its pharmaceutical firms, in exchange for lower tariffs and capital.

A number of the world's largest drug companies have said recently that they are either pausing or canceling investments in the United Kingdom, with some blaming the insufficient payments they are receiving.

Recently, the Science Minister said the price the health service spends on medicines would must increase to halt businesses and pharmaceutical investment departing from the UK.

Reeves informed the BBC: "We have seen as a result of the pricing regime, that medical research, new drugs have not been provided in the UK in the extent that they are in other continental states."

"We want to make sure that patients receiving care from the NHS are able to access the finest essential medicines in the globe. And so we are looking at this situation, and... looking to attract additional funding into the UK."