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Chancellor Rachel Reeves has announced she is planning "targeted action to address household expense challenges" in the upcoming financial statement.

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

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

Possible Utility Cost Interventions

It is understood the administration could take action to bring down energy bills, such as by reducing the present 5% rate of value-added tax applied on energy supplies.

Another approach is to lower some of the government charges currently added to household expenses.

Fiscal Limitations and Expert Expectations

The administration will receive the next report from the independent fiscal watchdog, the Office for Budget Responsibility, on the start of the week, which will show how much room there is for these measures.

The expectation from most economists is that Reeves will have to declare higher taxes or expenditure reductions in order to fulfill her declared borrowing rules.

Earlier on the same day, calculations indicated there was a £22bn shortfall for the chancellor to resolve, which is at the lower end of projections.

"There's a collective job between the Bank of England and the government to continue tackling some of the sources of price increases," the Chancellor stated to reporters in Washington, at the yearly gatherings of the International Monetary Fund and global financial institution.

Tax Pledges and International Concerns

While a great deal of the focus has been on likely tax rises, the chancellor said the most recent figures from the OBR had not altered her pledge to election pledges not to increase rates on income tax, sales tax or National Insurance.

She blamed an "uncertain world" with growing geopolitical and trade concerns for the fiscal revenue measures, likely to be targeted on those "with the broadest shoulders."

International Economic Tensions

Addressing apprehensions about the UK's commercial links with China she said: "The UK's national security always come first."

Recent declaration by Chinese authorities to increase export controls on rare earths and other resources that are essential for high-technology production led US President Donald Trump to propose an further 100% import tax on imports from the Asian country, raising the prospect of an full-scale trade war between the two global powers.

The American finance chief called the Chinese decision "commercial pressure" and "a international production power grab."

Asked about accepting the American proposal to join its battle with the Asian nation, Reeves said she was "extremely troubled" by China's measures 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 causes additional challenges."

"I believe there are fields where we must address China, but there are also important prospects to trade with China's economy, including financial services and other sectors of the economy. We've got to achieve that balance right."

The Treasury chief also stated she was collaborating with G7 counterparts "on our own critical minerals approach, so that we are more independent."

Health Service Drug Costs and Funding

Reeves also admitted that the cost the NHS spends on drugs could increase as a consequence of current discussions with the US government and its drugs companies, in exchange for lower tariffs and funding.

A number of the world's largest drug companies have said lately that they are either delaying or scrapping projects in the UK, with several attributing the insufficient payments they are obtaining.

Last month, the Science Minister said the price the NHS spends on drugs would must go up to prevent businesses and drug research funding leaving the United Kingdom.

The Chancellor informed the BBC: "We have seen as a result of the pricing regime, that drug testing, new drugs have not been offered in the United Kingdom in the way that they are in other European countries."

"We want to make sure that individuals receiving treatment from the NHS are able to obtain the best life-saving drugs in the world. And so we are reviewing this situation, and... seeking to secure increased investment into the UK."