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

During an interview with the BBC, she emphasized that curbing price rises is a shared responsibility of both the administration and the Bank of England.

The UK's price growth is forecast to be the highest among the Group of Seven industrialized countries this year and next.

Potential Utility Cost Interventions

It is understood the government could intervene to reduce utility costs, for instance by slashing the present 5% level of value-added tax applied on energy supplies.

A further option is to reduce some of the government charges presently added to bills.

Fiscal Constraints and Analyst Predictions

The government will receive the next report from the official forecaster, the OBR, on the start of the week, which will clarify how much space there is for such actions.

The consensus from the majority of economists is that the Chancellor will have to declare tax rises or expenditure reductions in order to meet her self-imposed fiscal targets.

Earlier on the same day, analysis showed there was a £22 billion deficit for the Treasury chief to fill, which is at the more modest range of projections.

"It is a shared responsibility between the central bank and the administration to bear down further on some of the causes of inflation," the Chancellor told the BBC in Washington, at the annual meetings of the IMF and World Bank.

Revenue Commitments and International Concerns

While a great deal of the attention has been on likely tax increases, the chancellor said the latest information from the fiscal watchdog had not altered her vow to election pledges not to raise tax levels on earnings tax, sales tax or social security contributions.

She attributed an "unpredictable world" with rising international and commercial tensions for the Budget tax moves, likely to be targeted on those "with the broadest shoulders."

Global Economic Tensions

Commenting on worries about the United Kingdom's economic relations with the Asian nation she said: "Our national security invariably come first."

Last week's announcement by Chinese authorities to increase export controls on critical minerals and other resources that are key for high-technology manufacturing led American leader the US President to threaten an extra 100% tariff on imports from China, raising the prospect of an all-out commercial conflict between the two economic giants.

The US Treasury Secretary described China's move "commercial pressure" and "a global supply chain power grab."

Asked about considering the US offer to participate in its conflict with the Asian nation, Reeves said she was "deeply worried" by China's measures and encouraged the Beijing authorities "not to put up barriers and limit trade."

She said the decision was "bad for the international commerce and generates further headwinds."

"In my view there are areas where we should confront China, but there are also valuable prospects to sell into Chinese markets, including banking sector and other areas of the economy. We've got to get that equilibrium right."

The Treasury chief also affirmed she was collaborating with other major economies "regarding our own critical minerals strategy, so that we are less reliant."

Health Service Drug Pricing and Investment

The Chancellor also recognized that the price the National Health Service pays for medicines could rise as a consequence of ongoing discussions with the US government and its pharmaceutical firms, in exchange for lower tariffs and capital.

Some of the biggest global pharmaceutical manufacturers have said recently that they are either delaying or scrapping investments in the UK, with several attributing the modest returns they are receiving.

Recently, the government science advisor said the price the NHS spends on drugs would must increase to halt firms and pharmaceutical investment leaving the United Kingdom.

The Chancellor stated to the BBC: "It has been observed as a result of the payment system, that clinical trials, innovative medicines have not been offered in the United Kingdom in the way that they are in other European countries."

"The objective is to make sure that patients receiving treatment from the NHS are able to access the top life-saving drugs in the world. And so we are looking at these issues, and... aiming to attract increased capital into the UK."