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Treasury head Rachel Reeves has announced she is preparing "targeted measures to tackle household expense pressures" in next month's Budget.

In comments to media outlets, she stated that curbing inflation is a shared task of both the government and the Bank of England.

The United Kingdom's price growth is expected to be the most elevated among the Group of Seven developed nations this calendar year and the following year.

Potential Energy Cost Measures

It is understood the government could intervene to bring down energy bills, such as by cutting the present 5% rate of VAT charged on energy supplies.

An additional option is to cut some of the regulatory levies presently added to bills.

Fiscal Constraints and Analyst Expectations

The government will obtain the next report from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will reveal how much scope there is for such actions.

The expectation from the majority of analysts is that Reeves will have to introduce tax increases or budget cuts in order to meet her declared borrowing rules.

Previously on the same day, estimates indicated there was a £22 billion shortfall for the Treasury chief to fill, which is at the more modest range of expectations.

"It is a joint responsibility between the central bank and the administration to continue tackling some of the sources of inflation," the Chancellor told reporters in Washington, at the annual meetings of the IMF and global financial institution.

Revenue Pledges and International Concerns

While much of the attention has been on probable tax rises, the chancellor said the most recent data from the fiscal watchdog had not changed her vow to election pledges not to increase tax levels on income tax, VAT or National Insurance.

She attributed an "unpredictable global environment" with growing geopolitical and trade concerns for the fiscal revenue measures, probably to be directed on those "with the broadest shoulders."

International Economic Disputes

Referring to concerns about the United Kingdom's trade ties with the Asian nation she said: "The UK's security interests always come first."

Last week's statement by China to tighten trade restrictions on rare earths and other materials that are crucial for advanced tech manufacturing led US President the US President to suggest an extra 100% tariff on imports from China, raising the risk of an full-scale trade war between the two global powers.

The American finance chief labeled China's move "commercial pressure" and "a global supply chain control attempt."

Questioned on accepting the American proposal to participate in its battle with China, Reeves said she was "very concerned" by Chinese actions and urged the Chinese government "to avoid restrictions and limit trade."

She said the action was "bad for the world economy and causes further challenges."

"It is my opinion there are sectors where we must challenge China, but there are also significant chances to sell into China's economy, including financial services and other areas of the economic system. We've got to achieve that balance appropriate."

The chancellor also confirmed she was working with international partners "regarding our own essential resources strategy, so that we are less reliant."

NHS Medicine Pricing and Investment

Reeves also acknowledged that the cost the NHS spends on pharmaceuticals could rise as a consequence of current talks with the US government and its pharmaceutical firms, in exchange for lower tariffs and funding.

A number of the world's largest drug companies have said in recent statements that they are either delaying or canceling investments in the UK, with several attributing the insufficient payments they are getting.

Last month, the government science advisor said the price the NHS spends on drugs would must go up to stop businesses and drug research funding departing from the UK.

The Chancellor informed media: "We have seen because of the cost structure, that medical research, new drugs have not been provided in the UK in the way that they are in other European countries."

"The objective is to guarantee that patients getting treatment from the NHS are can access the finest life-saving drugs in the globe. And so we are reviewing these issues, and... aiming to attract more funding into the UK."