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Treasury head Rachel Reeves has announced she is preparing "targeted action to address household expense challenges" in the upcoming Budget.

In comments to media outlets, she noted that curbing price rises is a collective duty of both the government and the Bank of England.

The United Kingdom's price growth is forecast to be the highest among the G7 industrialized countries this year and the following year.

Possible Utility Bill Interventions

Reports indicate the government could intervene to reduce utility costs, for example by cutting the current 5% level of value-added tax charged on energy.

Another approach is to reduce some of the regulatory levies presently added to bills.

Budgetary Constraints and Analyst Expectations

The government will receive the next report from the independent fiscal watchdog, the OBR, on Monday, which will clarify how much space there is for these measures.

The view from the majority of analysts is that the Chancellor will have to introduce tax increases or spending cuts in order to meet her self-imposed fiscal targets.

Earlier on the same day, calculations suggested there was a £22 billion deficit for the Treasury chief to fill, which is at the more modest range of projections.

"It is a joint task between the Bank of England and the administration to continue tackling some of the drivers of price increases," the Chancellor informed the BBC in Washington, at the conferences of the International Monetary Fund and global financial institution.

Revenue Commitments and International Issues

While much of the attention has been on likely tax increases, the Treasury chief said the most recent figures from the fiscal watchdog had not changed her commitment to election pledges not to raise tax levels on income tax, VAT or National Insurance.

She attributed an "uncertain world" with rising international and commercial tensions for the fiscal tax moves, likely to be directed on those "wealthiest."

International Trade Disputes

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

Recent announcement by China to strengthen export controls on critical minerals and other materials that are key for advanced tech manufacturing led American leader the US President to propose an further 100% tariff on goods from China, raising the possibility of an all-out trade war between the two largest economies.

The American finance chief described the Chinese decision "economic coercion" and "a global supply chain control attempt."

Asked about accepting the American proposal to participate in its conflict with China, the Chancellor said she was "very concerned" by Chinese measures and urged the Chinese government "not to put up barriers and limit trade."

She said the action was "harmful for the global economy and generates additional obstacles."

"In my view there are areas where we must confront China, but there are also significant chances to trade with Chinese markets, including banking sector and other sectors of the economy. We've got to get that balance appropriate."

The Treasury chief also confirmed she was cooperating with G7 counterparts "regarding our own essential resources strategy, so that we are more independent."

Health Service Drug Pricing and Investment

The Chancellor also admitted that the price the NHS pays for pharmaceuticals could go up as a result of current negotiations with the US government and its pharmaceutical firms, in return for reduced taxes and funding.

A number of the biggest global drug companies have said in recent statements that they are either delaying or scrapping investments in the UK, with several attributing the low prices they are obtaining.

Last month, the government science advisor said the price the NHS spends on medicines would need to increase to prevent businesses and pharmaceutical investment departing from the UK.

Reeves stated to the BBC: "It has been observed due to the cost structure, that drug testing, recent pharmaceuticals have not been offered in the UK in the way that they are in other continental states."

"The objective is to ensure that individuals getting treatment from the NHS are able to access the best essential treatments in the globe. And so we are looking at all of that, and... aiming to obtain additional investment into the UK."