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Chancellor Rachel Reeves has stated she is preparing "focused steps to address household expense challenges" in the forthcoming Budget.

Speaking to the BBC, she stated that reducing inflation is a shared responsibility of both the government and the Bank of England.

The United Kingdom's inflation rate is forecast to be the highest among the Group of Seven advanced economies this calendar year and next.

Possible Energy Cost Interventions

Sources suggest the government could take action to lower energy bills, such as by reducing the current 5% rate of VAT applied on energy supplies.

Another option is to lower some of the government charges currently included in bills.

Fiscal Constraints and Analyst Expectations

The administration will receive the next assessment from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will reveal how much room there is for these measures.

The expectation from most economists is that the Chancellor will have to introduce tax increases or spending cuts in order to adhere to her voluntary borrowing rules.

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

"There's a collective task between the Bank of England and the administration to further reduce some of the causes of inflation," the Chancellor stated to reporters in the US capital, at the annual meetings of the International Monetary Fund and World Bank.

Revenue Commitments and Global Issues

While a great deal of the focus has been on likely tax rises, the chancellor said the latest data from the OBR had not changed her pledge to manifesto promises not to raise tax levels on income tax, VAT or social security contributions.

She attributed an "unpredictable global environment" with increasing international and commercial concerns for the fiscal revenue measures, likely to be focused on those "with the broadest shoulders."

Global Economic Disputes

Commenting on apprehensions about the UK's trade ties with the Asian nation she said: "Our national security always are paramount."

Recent announcement by China to tighten trade restrictions on critical minerals and other materials that are crucial for high-technology manufacturing led US President Donald Trump to propose an further 100% import tax on imports from China, raising the prospect of an all-out trade war between the two global powers.

The US Treasury Secretary described the Chinese move "commercial pressure" and "a global supply chain control attempt."

Questioned on considering the US offer to join its dispute with China, Reeves said she was "deeply worried" by Chinese measures and encouraged the Beijing authorities "not to put up barriers and restrict access."

She said the move was "damaging for the world economy and causes additional challenges."

"I believe there are areas where we need to address China, but there are also valuable prospects to trade with China's economy, including financial services and other sectors of the economy. We've got to get that equilibrium appropriate."

The Treasury chief also confirmed she was working with G7 counterparts "regarding our own essential resources approach, so that we are reduced dependence."

NHS Medicine Costs and Investment

Reeves also recognized that the cost the NHS spends on pharmaceuticals could go up as a result of current discussions with the Trump administration and its drugs companies, in exchange for reduced taxes and funding.

A number of the world's largest pharmaceutical manufacturers have said lately that they are either delaying or scrapping projects in the UK, with some attributing the modest returns they are getting.

Recently, the government science advisor said the cost the NHS spends on medicines would must increase to stop businesses and drug research funding departing from the United Kingdom.

Reeves informed the BBC: "It has been observed as a result of the payment system, that drug testing, innovative medicines have not been offered in the UK in the way that they are in other continental states."

"Our aim is to guarantee that people receiving treatment from the NHS are can access the best essential drugs in the globe. And so we are examining these issues, and... seeking to attract more investment into Britain."