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Treasury head Rachel Reeves has stated she is preparing "targeted measures to address household expense issues" in next month's Budget.

Speaking to the BBC, she noted that reducing inflation is a collective duty of both the administration and the Bank of England.

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

Potential Energy Bill Measures

Sources suggest the government could intervene to reduce energy bills, for example by cutting the present 5% rate of VAT charged on energy supplies.

An additional approach is to reduce some of the government charges currently included in household expenses.

Budgetary Limitations and Analyst Predictions

The government will obtain the next draft from the official forecaster, the OBR, on the start of the week, which will clarify how much scope there is for these measures.

The expectation from most analysts is that the Chancellor will have to introduce higher taxes or spending cuts in order to adhere to her self-imposed fiscal targets.

Previously on Thursday, calculations indicated there was a £22bn deficit for the Treasury chief to resolve, which is at the lower end of projections.

"It is a joint task between the Bank of England and the government to continue tackling some of the sources of price increases," the Chancellor told the BBC in the US capital, at the conferences of the IMF and global financial institution.

Tax Pledges and Global Issues

While much of the focus has been on likely tax increases, the Treasury chief said the most recent data from the OBR had not changed her pledge to manifesto promises not to raise tax levels on earnings tax, sales tax or social security contributions.

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

International Trade Tensions

Commenting on concerns about the UK's trade ties with the Asian nation she said: "Our national security invariably are paramount."

Recent statement by China to strengthen export controls on rare earths and other resources that are key for advanced tech production led US President Donald Trump to suggest an additional 100% tariff on goods from China, raising the possibility of an full-scale commercial conflict between the two global powers.

The US Treasury Secretary described the Chinese decision "economic coercion" and "a international production control attempt."

Asked about accepting the US offer to join its dispute with the Asian nation, the Chancellor said she was "deeply worried" by Chinese actions and called on the Beijing authorities "not to put up barriers and limit trade."

She said the action was "bad for the international commerce and generates additional headwinds."

"It is my opinion there are fields where we need to address China, but there are also important chances to sell into Chinese markets, including banking sector and other sectors of the economy. We've got to get that equilibrium correct."

The chancellor also stated she was working with international partners "regarding our own critical minerals plan, so that we are reduced dependence."

NHS Medicine Pricing and Funding

The Chancellor also recognized that the cost the National Health Service pays for pharmaceuticals could go up as a result of ongoing negotiations with the Trump administration and its pharmaceutical firms, in exchange for reduced taxes and capital.

A number of the biggest global drug companies have said in recent statements that they are either delaying or abandoning investments in the UK, with some attributing the modest returns they are getting.

Recently, the Science Minister said the cost the NHS spends on drugs would have to increase to halt firms and drug research funding leaving the United Kingdom.

The Chancellor informed the BBC: "We have seen because of the payment system, that clinical trials, new drugs have not been provided in the United Kingdom in the way that they are in other European countries."

"Our aim is to make sure that people getting treatment from the National Health Service are can receive the best critical drugs in the world. And so we are reviewing this situation, and... looking to attract additional investment into the UK."