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Treasury head Rachel Reeves has stated she is planning "focused action to deal with household expense issues" in the upcoming Budget.

During an interview with the BBC, she noted that reducing price rises is a shared responsibility of both the government and the Bank of England.

The United Kingdom's inflation rate is projected to be the highest among the G7 developed nations this year and next.

Possible Utility Cost Measures

Sources suggest the government could intervene to bring down energy bills, such as by reducing the present 5% level of VAT charged on energy.

An additional option is to lower some of the government charges currently added to bills.

Budgetary Constraints and Analyst Expectations

The administration will obtain the latest assessment from the official forecaster, the Office for Budget Responsibility, on the start of the week, which will reveal how much room there is for such measures.

The view from the majority of economists is that the Chancellor will have to declare tax rises or spending cuts in order to adhere to her declared fiscal targets.

Previously on the same day, estimates indicated there was a £22 billion gap for the chancellor to address, which is at the more modest range of projections.

"It is a joint job between the Bank of England and the administration to further reduce some of the causes of price increases," Reeves stated to reporters in Washington, at the conferences of the International Monetary Fund and global financial institution.

Revenue Pledges and Global Concerns

While much of the focus has been on probable tax rises, the Treasury chief said the most recent figures from the OBR had not changed her pledge to election pledges not to raise tax levels on income tax, VAT or social security contributions.

She blamed an "unpredictable global environment" with growing geopolitical and trade tensions for the fiscal tax moves, likely to be focused on those "with the broadest shoulders."

International Trade Tensions

Referring to worries about the United Kingdom's economic relations with China she said: "Our security interests always take priority."

Recent announcement by China to tighten trade restrictions on rare earths and other resources that are key for advanced tech manufacturing led American leader the US President to propose an further 100% import tax on imports from China, increasing the risk of an full-scale trade war between the two economic giants.

The American finance chief called China's decision "commercial pressure" and "a international production power grab."

Asked about considering the US offer to participate in its conflict with China, Reeves said she was "very concerned" by Chinese measures and called on the Chinese government "to avoid restrictions and restrict access."

She said the action was "bad for the international commerce and causes additional obstacles."

"It is my opinion there are areas where we should address Chinese policies, but there are also important prospects to export to Chinese markets, including banking sector and other areas of the economic system. We've got to get that balance correct."

The Treasury chief also stated she was collaborating with other major economies "on our own essential resources plan, so that we are reduced dependence."

Health Service Drug Pricing and Funding

The Chancellor also acknowledged that the price the NHS spends on drugs could go up as a result of ongoing discussions with the Trump administration and its pharmaceutical firms, in exchange for lower tariffs and investment.

A number of the world's largest pharmaceutical manufacturers have said in recent statements that they are either pausing or canceling investments in the United Kingdom, with several attributing the low prices they are obtaining.

Last month, the government science advisor said the cost the NHS spends on drugs would must increase to stop firms and drug research funding leaving the UK.

Reeves stated to the BBC: "We have seen because of the pricing regime, that medical research, innovative medicines have not been provided in the UK in the extent that they are in other continental states."

"The objective is to guarantee that patients receiving treatment from the National Health Service are able to access the top essential drugs in the globe. And so we are reviewing this situation, and... aiming to obtain increased investment into the UK."