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Treasury head Rachel Reeves has announced she is preparing "focused measures to tackle household expense issues" in the upcoming Budget.

Speaking to the BBC, she stated that reducing inflation is a joint task of both the administration and the Bank of England.

The UK's inflation rate is expected to be the highest among the G7 advanced economies this year and next.

Possible Energy Bill Measures

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

A further possibility is to cut some of the policy costs currently added to household expenses.

Fiscal Constraints and Expert Predictions

The administration will obtain the next draft from the official forecaster, the Office for Budget Responsibility, on the start of the week, which will reveal how much scope there is for these actions.

The consensus from the majority of experts is that Reeves will have to introduce tax rises or expenditure reductions in order to adhere to her voluntary fiscal targets.

Earlier on the same day, estimates suggested there was a £22 billion shortfall for the chancellor to fill, which is at the lower end of expectations.

"It is a joint responsibility between the Bank of England and the government to continue tackling some of the causes of price increases," the Chancellor stated to reporters in the US capital, at the annual meetings of the International Monetary Fund and global financial institution.

Tax Pledges and International Issues

While a great deal of the focus has been on likely tax increases, the Treasury chief said the latest figures from the fiscal watchdog had not altered her vow to election pledges not to increase rates on income tax, sales tax or National Insurance.

She attributed an "unpredictable world" with rising international and commercial concerns for the Budget revenue measures, likely to be directed on those "most able to pay."

Global Trade Disputes

Commenting on worries about the United Kingdom's trade ties with China she said: "The UK's security interests invariably take priority."

Last week's statement by China to tighten trade restrictions on critical minerals and other materials that are crucial for advanced tech production led US President the US President to suggest an additional 100% tariff on goods from China, raising the risk of an full-scale trade war between the two largest economies.

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

Questioned on considering the American proposal to participate in its conflict with the Asian nation, the Chancellor said she was "deeply worried" by Chinese actions and called on the Chinese government "not to put up barriers and restrict access."

She said the move was "damaging for the international commerce and causes additional headwinds."

"I believe there are fields where we need to confront Chinese policies, but there are also important prospects to sell into Chinese markets, including financial services and other areas of the economic system. We've got to achieve that balance correct."

The Treasury chief also affirmed she was working with international partners "regarding our own essential resources approach, so that we are less reliant."

NHS Drug Pricing and Investment

The Chancellor also recognized that the cost the NHS spends on drugs could rise as a result of ongoing talks with the US government and its drugs companies, in exchange for reduced taxes and capital.

A number of the biggest global pharmaceutical manufacturers have said in recent statements that they are either delaying or canceling projects in the UK, with several blaming the insufficient payments they are receiving.

Last month, the government science advisor said the cost the health service spends on drugs would need to increase to halt businesses and pharmaceutical investment departing from the United Kingdom.

Reeves stated to media: "We have seen due to the cost structure, that clinical trials, recent pharmaceuticals have not been available in the United Kingdom in the way that they are in other continental states."

"Our aim is to make sure that individuals receiving care from the NHS are able to access the finest life-saving medicines in the world. And so we are looking at all of that, and... looking to attract increased funding into the UK."