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Chancellor Rachel Reeves has stated she is planning "focused action to deal with household expense pressures" in the upcoming Budget.

Speaking to the BBC, she emphasized that lowering price rises is a shared duty of both the government and the central bank.

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

Potential Utility Cost Interventions

It is understood the administration could intervene to bring down utility costs, for example by cutting the current 5% level of VAT charged on energy supplies.

A further possibility is to reduce some of the policy costs currently included in bills.

Fiscal Limitations and Expert Expectations

The government will obtain the latest assessment from the independent fiscal watchdog, the OBR, on the start of the week, which will clarify how much room there is for such measures.

The view from the majority of economists is that Reeves will have to declare tax increases or spending cuts in order to meet her voluntary debt limits.

Previously on the same day, estimates suggested there was a £22 billion shortfall for the chancellor to resolve, which is at the more modest range of expectations.

"There's a shared task between the Bank of England and the administration to further reduce some of the causes of price increases," the Chancellor told reporters in Washington, at the annual meetings of the International Monetary Fund and World Bank.

Tax Pledges and Global Concerns

While much of the attention has been on likely tax increases, the chancellor said the most recent data from the OBR had not changed her vow to campaign commitments not to increase rates on income tax, VAT or National Insurance.

She blamed an "unpredictable world" with growing geopolitical and trade tensions for the fiscal tax moves, likely to be focused on those "with the broadest shoulders."

Global Trade Disputes

Addressing worries about the United Kingdom's commercial links with the Asian nation she said: "The UK's national security always come first."

Last week's declaration by Chinese authorities to tighten export controls on critical minerals and other resources that are crucial for advanced tech production led US President the US President to propose an extra 100% import tax on goods from China, increasing the possibility of an all-out commercial conflict between the two largest economies.

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

Inquired about accepting the American proposal to join its dispute with the Asian nation, Reeves said she was "deeply worried" by China's actions and called on the Beijing authorities "not to put up barriers and restrict access."

She said the decision was "bad for the international commerce and creates further challenges."

"It is my opinion there are areas where we need to challenge Chinese policies, but there are also important prospects to export to China's economy, including financial services and other sectors of the economic system. We've got to get that balance appropriate."

The Treasury chief also stated she was collaborating with international partners "on our own essential resources plan, so that we are less reliant."

Health Service Medicine Pricing and Funding

The Chancellor also recognized that the cost the National Health Service pays for pharmaceuticals could go up as a consequence of current discussions with the US government and its drugs companies, in return for reduced taxes and funding.

A number of the world's largest pharmaceutical manufacturers have said in recent statements that they are either halting or scrapping investments in the UK, with several attributing the insufficient payments they are getting.

Recently, the government science advisor said the price the health service pays for drugs would need to increase to prevent firms and drug research funding departing from the UK.

Reeves told media: "We have seen as a result of the payment system, that medical research, innovative medicines have not been available in the United Kingdom in the extent that they are in other European countries."

"The objective is to ensure that individuals getting care from the National Health Service are can receive the top essential treatments in the world. And so we are looking at these issues, and... aiming to obtain more capital into the UK."