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Treasury head Rachel Reeves has stated she is preparing "specific action to tackle household expense issues" in next month's Budget.

In comments to media outlets, she noted that lowering price rises is a joint duty of both the government and the Bank of England.

The UK's price growth is projected to be the highest among the G7 advanced economies this calendar year and next.

Potential Utility Cost Measures

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

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

Fiscal Limitations and Expert Expectations

The government will receive the latest draft from the independent fiscal watchdog, the Office for Budget Responsibility, on the start of the week, which will reveal how much room there is for such actions.

The consensus from most experts is that the Chancellor will have to announce higher taxes or spending cuts in order to adhere to her voluntary borrowing rules.

Previously on Thursday, calculations showed there was a £22bn shortfall for the chancellor to resolve, which is at the lower end of expectations.

"It is a shared job between the central bank and the administration to bear down further on some of the sources of price increases," the Chancellor told reporters in Washington, at the annual meetings of the IMF and World Bank.

Tax Pledges and International Concerns

While much of the attention has been on likely tax increases, the Treasury chief said the latest information from the fiscal watchdog had not altered her vow to manifesto promises not to increase tax levels on earnings tax, sales tax or social security contributions.

She attributed an "uncertain global environment" with rising geopolitical and commercial tensions for the Budget tax moves, likely to be directed on those "most able to pay."

International Economic Disputes

Addressing apprehensions about the United Kingdom's economic relations with China she said: "Our national security invariably take priority."

Last week's announcement by China to tighten trade restrictions on critical minerals and other resources that are crucial for advanced tech manufacturing led American leader Donald Trump to suggest an further 100% tariff on imports from the Asian country, increasing the risk of an all-out trade war between the two economic giants.

The US Treasury Secretary labeled the Chinese action "economic coercion" and "a global supply chain control attempt."

Questioned on accepting the American proposal to participate in its battle with the Asian nation, the Chancellor said she was "extremely troubled" by Chinese measures and encouraged the Beijing authorities "to avoid restrictions and restrict access."

She said the move was "harmful for the global economy and creates additional challenges."

"In my view there are fields where we need to challenge Chinese policies, but there are also significant opportunities to trade with China's economy, including banking sector and other sectors of the economy. We've got to achieve that balance right."

The Treasury chief also affirmed she was cooperating with G7 counterparts "on our own essential resources strategy, so that we are more independent."

NHS Medicine Pricing and Funding

The Chancellor also acknowledged that the price the National Health Service pays for drugs could increase as a consequence of current negotiations with the US government and its drugs companies, in exchange for lower tariffs and capital.

Some of the world's largest pharmaceutical manufacturers have said lately that they are either halting or scrapping investments in the United Kingdom, with several attributing the modest returns they are receiving.

Last month, the government science advisor said the price the NHS spends on medicines would need to increase to prevent firms and pharmaceutical investment departing from the United Kingdom.

The Chancellor informed media: "It has been observed because of the payment system, that medical research, innovative medicines have not been provided in the United Kingdom in the way that they are in other European countries."

"We want to guarantee that individuals receiving care from the NHS are able to access the top essential treatments in the globe. And so we are examining all of that, and... seeking to secure more funding into Britain."