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Chancellor Reeves has revealed she is preparing "focused measures to deal with household expense pressures" in next month's financial statement.

Speaking to the BBC, she emphasized that curbing price rises is a joint responsibility of both the government and the central bank.

The United Kingdom's inflation rate is expected to be the most elevated among the G7 developed nations this year and next.

Possible Utility Cost Measures

It is understood the government could intervene to bring down utility costs, such as by cutting the current 5% rate of VAT applied on energy supplies.

A further approach is to cut some of the government charges presently included in household expenses.

Budgetary Constraints and Expert Expectations

The government will receive the latest draft from the official forecaster, the Office for Budget Responsibility, on Monday, which will show how much space there is for such measures.

The consensus from the majority of economists is that Reeves will have to declare tax rises or budget cuts in order to fulfill her self-imposed borrowing rules.

Earlier on Thursday, calculations showed there was a £22bn shortfall for the chancellor to fill, which is at the more modest range of projections.

"There's a joint job between the Bank of England and the administration to further reduce some of the drivers of inflation," Reeves told reporters in the US capital, at the conferences of the International Monetary Fund and global financial institution.

Tax Commitments and Global Concerns

While a great deal of the focus has been on probable tax rises, the Treasury chief said the latest figures from the fiscal watchdog had not altered her pledge to campaign commitments not to raise rates on earnings tax, VAT or National Insurance.

She blamed an "uncertain world" with increasing international and trade concerns for the Budget revenue measures, probably to be targeted on those "with the broadest shoulders."

International Economic Disputes

Referring to concerns about the United Kingdom's commercial links with the Asian nation she said: "Our national security always take priority."

Last week's declaration by China to increase export controls on rare earths and other materials that are key for advanced tech production led US President Donald Trump to propose an extra 100% tariff on goods from China, raising the risk of an full-scale commercial conflict between the two largest economies.

The American finance chief described China's action "commercial pressure" and "a international production control attempt."

Questioned on considering the American proposal to join its conflict with China, Reeves said she was "very concerned" by Chinese measures and called on the Chinese government "not to put up barriers and restrict access."

She said the move was "harmful for the global economy and causes further challenges."

"In my view there are sectors where we must confront China, but there are also important prospects to sell into China's economy, including banking sector and other areas of the economic system. We've got to maintain that balance right."

The chancellor also confirmed she was working with G7 counterparts "regarding our own essential resources strategy, so that we are more independent."

NHS Drug Pricing and Investment

Reeves also acknowledged that the price the NHS spends on pharmaceuticals could rise as a consequence of current negotiations with the Trump administration and its drugs companies, in exchange for lower tariffs and capital.

A number of the world's largest drug companies have said recently that they are either delaying or abandoning projects in the United Kingdom, with several attributing the insufficient payments they are getting.

Recently, the Science Minister said the cost the NHS pays for drugs would must go up to prevent firms and pharmaceutical investment leaving the United Kingdom.

The Chancellor stated to the BBC: "It has been observed because of the pricing regime, that medical research, new drugs have not been available in the United Kingdom in the way that they are in other European countries."

"The objective is to make sure that people getting care from the National Health Service are able to access the top life-saving medicines in the globe. And so we are reviewing all of that, and... looking to secure more capital into Britain."