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Chancellor Rachel Reeves has announced she is planning "focused steps to tackle household expense challenges" in next month's Budget.

During an interview with the BBC, she emphasized that lowering price rises is a joint task of both the administration and the Bank of England.

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

Potential Utility Cost Interventions

Sources suggest the administration could take action to reduce utility costs, for instance by reducing the current 5% rate of value-added tax applied on energy.

Another option is to reduce some of the government charges currently included in bills.

Budgetary Limitations and Expert Predictions

The government will obtain the next assessment from the independent fiscal watchdog, the OBR, on Monday, which will reveal how much space there is for such measures.

The view from most economists is that Reeves will have to announce tax rises or budget cuts in order to meet her voluntary borrowing rules.

Previously on Thursday, analysis indicated there was a £22bn gap for the chancellor to fill, which is at the more modest range of expectations.

"It is a joint responsibility between the Bank of England and the administration to continue tackling some of the causes of price increases," Reeves informed the BBC in the US capital, at the yearly gatherings of the IMF and World Bank.

Revenue Commitments and Global Concerns

While much of the attention has been on likely tax increases, the Treasury chief said the latest data from the fiscal watchdog had not altered her commitment to campaign commitments not to increase tax levels on earnings tax, sales tax or social security contributions.

She attributed an "uncertain global environment" with increasing international and trade tensions for the fiscal revenue measures, likely to be directed on those "with the broadest shoulders."

International Trade Tensions

Commenting on concerns about the United Kingdom's economic relations with China she said: "The UK's national security invariably take priority."

Recent announcement by Chinese authorities to tighten trade restrictions on rare earths and other materials that are key for advanced tech manufacturing led American leader the US President to threaten an additional 100% tariff on imports from China, raising the prospect of an full-scale trade war between the two economic giants.

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

Asked about considering the American proposal to participate in its conflict with China, Reeves said she was "deeply worried" by Chinese actions and called on the Chinese government "not to put up barriers and limit trade."

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

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

The Treasury chief also confirmed she was collaborating with international partners "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 drugs companies, in return for reduced taxes and investment.

Some of the world's largest drug companies have said recently that they are either halting or scrapping operations in the United Kingdom, with several attributing the insufficient payments they are obtaining.

Last month, the government science advisor said the price the NHS pays for drugs would must rise to prevent businesses and drug research funding leaving the UK.

Reeves stated to media: "We have seen as a result of the cost structure, that clinical trials, innovative medicines have not been offered in the UK in the extent that they are in other EU nations."

"Our aim is to ensure that people getting treatment from the National Health Service are can receive the top essential medicines in the globe. And so we are reviewing this situation, and... seeking to attract additional investment into the UK."