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Chancellor Rachel Reeves has revealed she is planning "specific action to tackle household expense pressures" in the forthcoming Budget.

Speaking to the BBC, she stated that reducing price rises is a joint duty of both the administration and the central bank.

The UK's price growth is expected to be the most elevated among the Group of Seven advanced economies this year and next.

Potential Utility Cost Measures

It is understood the government could take action to reduce utility costs, for instance by cutting the present 5% rate of value-added tax applied on energy supplies.

A further possibility is to lower some of the regulatory levies currently added to bills.

Fiscal Constraints and Expert Predictions

The government will receive the latest report from the official forecaster, the OBR, on Monday, which will reveal how much scope there is for these measures.

The consensus from most economists is that Reeves will have to announce tax increases or expenditure reductions in order to fulfill her voluntary borrowing rules.

Earlier on the same day, estimates showed there was a £22 billion gap for the chancellor to fill, which is at the more modest range of expectations.

"There's a shared job between the central bank and the government to bear down further on some of the drivers of inflation," Reeves informed the BBC in Washington, at the annual meetings of the IMF and global financial institution.

Revenue Pledges and International Concerns

While a great deal of the attention has been on expected tax increases, the chancellor said the latest data from the OBR had not changed her vow to election pledges not to raise tax levels on earnings tax, VAT or social security contributions.

She attributed an "unpredictable global environment" with growing international and commercial tensions for the fiscal tax moves, likely to be focused on those "with the broadest shoulders."

Global Economic Disputes

Commenting on concerns about the UK's trade ties with China she said: "The UK's security interests always take priority."

Recent declaration by Chinese authorities to strengthen export controls on critical minerals and other resources that are crucial for advanced tech production led American leader the US President to threaten an further 100% tariff on imports from China, raising the risk of an all-out trade war between the two global powers.

The US Treasury Secretary called China's decision "economic coercion" and "a international production power grab."

Asked about considering the American proposal to join its battle with the Asian nation, the Chancellor said she was "deeply worried" by China's measures and called on the Chinese government "to avoid restrictions and restrict access."

She said the action was "bad for the international commerce and generates further obstacles."

"It is my opinion there are sectors where we should confront China, but there are also important opportunities to trade with Chinese markets, including banking sector and other sectors of the economy. We've got to get that balance correct."

The chancellor also stated she was cooperating with G7 counterparts "on our own essential resources strategy, so that we are reduced dependence."

NHS Drug Pricing and Funding

The Chancellor also recognized that the cost the NHS spends on medicines could increase as a result of current discussions with the Trump administration and its pharmaceutical firms, in exchange for lower tariffs and funding.

A number of the biggest global drug companies have said lately that they are either pausing or scrapping projects in the UK, with some attributing the insufficient payments they are receiving.

Recently, the government science advisor said the price the NHS pays for medicines would must increase to stop businesses and drug research funding leaving the United Kingdom.

Reeves informed the BBC: "We have seen because of the payment system, that drug testing, recent pharmaceuticals have not been offered in the UK in the extent that they are in other EU nations."

"We want to ensure that people getting treatment from the National Health Service are can obtain the best critical drugs in the world. And so we are reviewing this situation, and... seeking to secure increased investment into Britain."