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Chancellor Rachel Reeves has stated she is planning "targeted measures to deal with household expense issues" in next month's financial statement.

In comments to the BBC, she noted that lowering inflation is a shared duty of both the government and the Bank of England.

The UK's inflation rate is expected to be the highest among the Group of Seven developed nations this year and next.

Possible Utility Bill Interventions

It is understood the government could intervene to lower energy bills, for instance by slashing the current 5% rate of VAT applied on energy supplies.

Another option is to lower some of the government charges presently added to household expenses.

Fiscal Constraints and Analyst Predictions

The government will receive the latest assessment from the independent fiscal watchdog, the OBR, on the start of the week, which will show how much space there is for these measures.

The expectation from most economists is that Reeves will have to declare tax increases or spending cuts in order to meet her self-imposed borrowing rules.

Previously on the same day, estimates indicated there was a £22 billion shortfall for the Treasury chief to address, which is at the lower end of forecasts.

"It is a joint job between the Bank of England and the government to bear down further on some of the sources of price increases," Reeves informed the BBC in the US capital, at the annual meetings of the International Monetary Fund and global financial institution.

Tax Commitments and International Issues

While a great deal of the attention has been on likely tax increases, the chancellor said the latest data from the OBR had not altered her pledge to election pledges not to raise tax levels on earnings tax, sales tax or National Insurance.

She attributed an "uncertain global environment" with increasing geopolitical and trade issues for the Budget tax moves, probably to be focused on those "with the broadest shoulders."

Global Economic Disputes

Addressing apprehensions about the United Kingdom's economic relations with the Asian nation she said: "The UK's national security invariably are paramount."

Last week's statement by China to increase export controls on critical minerals and other materials that are crucial for advanced tech manufacturing led US President Donald Trump to propose an additional 100% import tax on imports from China, increasing the possibility of an full-scale commercial conflict between the two economic giants.

The US Treasury Secretary labeled China's move "commercial pressure" and "a international production power grab."

Inquired about accepting the US offer to join its battle with the Asian nation, Reeves said she was "very concerned" by China's actions and called on the Chinese government "to avoid restrictions and limit trade."

She said the action was "harmful for the international commerce and generates further headwinds."

"It is my opinion there are fields where we must address China, but there are also significant prospects to export to Chinese markets, including banking sector and other areas of the economy. We've got to get that balance right."

The chancellor also confirmed she was cooperating with international partners "on our own essential resources strategy, so that we are more independent."

NHS Medicine Pricing and Funding

The Chancellor also admitted that the price the NHS spends on drugs could rise as a consequence of current discussions with the US government 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 halting or canceling projects in the UK, with some attributing the insufficient payments they are receiving.

Last month, the government science advisor said the price the health service pays for medicines would need to go up to halt firms and pharmaceutical investment departing from the UK.

The Chancellor informed media: "We have seen as a result of the pricing regime, that clinical trials, recent pharmaceuticals have not been provided in the UK in the way that they are in other European countries."

"Our aim is to make sure that individuals getting care from the NHS are able to receive the best essential medicines in the globe. And so we are reviewing all of that, and... aiming to secure more capital into the UK."