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

In comments to the BBC, she noted that reducing inflation is a shared task of both the government and the central bank.

The UK's price growth is expected to be the most elevated among the G7 developed nations this year and next.

Potential Utility Cost Measures

It is understood the government could take action to reduce utility costs, for example by slashing the present 5% level of VAT charged on energy supplies.

An additional approach is to lower some of the regulatory levies currently included in household expenses.

Budgetary Limitations and Expert Predictions

The government will obtain the latest report from the official forecaster, the OBR, on Monday, which will show how much scope there is for such measures.

The view from most economists is that the Chancellor will have to announce tax rises or expenditure reductions in order to fulfill her voluntary fiscal targets.

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

"It is a joint job between the central bank and the administration to further reduce some of the causes of price increases," the Chancellor told reporters in the US capital, at the conferences of the International Monetary Fund and global financial institution.

Revenue Commitments and Global Concerns

While much of the attention has been on likely tax rises, the Treasury chief said the latest data from the fiscal watchdog had not altered her pledge to election pledges not to increase rates on income tax, VAT or National Insurance.

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

International Trade Tensions

Referring to worries about the United Kingdom's trade ties with China she said: "Our security interests invariably take priority."

Last week's declaration by China to strengthen export controls on critical minerals and other resources that are key for advanced tech manufacturing led US President the US President to threaten an additional 100% import tax on imports from the Asian country, increasing the possibility of an all-out trade war between the two largest economies.

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

Asked about accepting the American proposal to join its battle with China, Reeves said she was "deeply worried" by Chinese measures and encouraged the Beijing authorities "to avoid restrictions and limit trade."

She said the decision was "harmful for the global economy and creates additional obstacles."

"In my view there are fields where we need to address Chinese policies, but there are also valuable prospects to sell into Chinese markets, including banking sector and other sectors of the economic system. We've got to get that equilibrium correct."

The Treasury chief also stated she was cooperating with international partners "regarding our own critical minerals approach, so that we are more independent."

NHS Medicine Costs and Investment

Reeves also acknowledged that the price the NHS pays for drugs could rise as a result of ongoing talks with the US government and its drugs companies, in return for reduced taxes and investment.

Some of the biggest global pharmaceutical manufacturers have said recently that they are either halting or abandoning operations in the United Kingdom, with several attributing the low prices they are receiving.

Last month, the Science Minister said the price the NHS spends on drugs would must go up to prevent businesses and pharmaceutical investment departing from the United Kingdom.

The Chancellor stated to the BBC: "It has been observed due to the payment system, that drug testing, new drugs have not been provided in the UK in the way that they are in other EU nations."

"Our aim is to make sure that people getting treatment from the National Health Service are can obtain the finest essential drugs in the world. And so we are reviewing all of that, and... looking to secure more funding into Britain."