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Treasury head Rachel Reeves has announced she is preparing "focused measures to tackle household expense challenges" in the forthcoming financial statement.

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

The UK's inflation rate is forecast to be the highest among the G7 industrialized countries this calendar year and next.

Potential Energy Bill Interventions

Sources suggest the government could intervene to reduce energy bills, such as by cutting the present 5% rate of value-added tax applied on energy.

Another possibility is to cut some of the policy costs presently included in bills.

Fiscal Limitations and Expert Expectations

The administration will obtain the next assessment from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will show how much space there is for such measures.

The expectation from the majority of experts is that Reeves will have to introduce tax rises or budget cuts in order to adhere to her voluntary borrowing rules.

Earlier on Thursday, analysis indicated there was a twenty-two billion pound shortfall for the chancellor to fill, which is at the lower end of expectations.

"It is a joint job between the Bank of England and the government to further reduce some of the drivers of price increases," Reeves told reporters in Washington, at the yearly gatherings of the International Monetary Fund and World Bank.

Tax Pledges and International Issues

While much of the attention has been on likely tax rises, the chancellor said the latest data from the OBR had not changed her pledge to campaign commitments not to increase rates on earnings tax, sales tax or social security contributions.

She attributed an "unpredictable world" with increasing international and commercial issues for the Budget revenue measures, likely to be directed on those "with the broadest shoulders."

International Economic Disputes

Referring to worries about the UK's economic relations with the Asian nation she said: "Our national security always come first."

Last week's statement by Chinese authorities to increase export controls on rare earths and other resources that are essential for advanced tech production led American leader the US President to suggest an further 100% tariff on imports from the Asian country, raising the prospect of an all-out commercial conflict between the two largest economies.

The US Treasury Secretary described the Chinese decision "commercial pressure" and "a global supply chain power grab."

Asked about accepting the US offer to participate in its conflict with China, Reeves said she was "deeply worried" by China's measures and called on the Beijing authorities "not to put up barriers and limit trade."

She said the move was "bad for the international commerce and creates additional obstacles."

"It is my opinion there are sectors where we should confront China, but there are also valuable prospects to trade with China's economy, including banking sector and other sectors of the economic system. We've got to achieve that balance appropriate."

The Treasury chief also stated she was collaborating with G7 counterparts "regarding our own essential resources approach, so that we are more independent."

NHS Medicine Costs and Investment

Reeves also acknowledged that the price the NHS pays for pharmaceuticals could go up as a consequence of current talks with the US government and its drugs companies, in exchange for reduced taxes and investment.

Some of the world's largest drug companies have said recently that they are either pausing or canceling projects in the UK, with some attributing the low prices they are obtaining.

Last month, the government science advisor said the cost the health service spends on drugs would must rise to halt companies and drug research funding departing from the UK.

Reeves told the BBC: "It has been observed as a result of the cost structure, that clinical trials, recent pharmaceuticals have not been offered in the United Kingdom in the manner that they are in other EU nations."

"We want to ensure that individuals receiving treatment from the National Health Service are able to receive the finest life-saving drugs in the world. And so we are looking at these issues, and... seeking to obtain more capital into Britain."