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Treasury head Rachel Reeves has stated she is preparing "focused measures to address household expense challenges" in the forthcoming Budget.

In comments to media outlets, she stated that reducing price rises is a collective duty of both the government and the Bank of England.

The UK's inflation rate is expected to be the highest among the Group of Seven developed nations this year and next.

Possible Energy Bill Measures

It is understood the administration could intervene to reduce energy bills, for example by slashing the current 5% level of value-added tax charged on energy.

Another option is to reduce some of the policy costs presently added to household expenses.

Budgetary Constraints and Analyst Predictions

The administration will obtain the next draft from the independent fiscal watchdog, the Office for Budget Responsibility, on Monday, which will reveal how much scope there is for such actions.

The view from the majority of analysts is that the Chancellor will have to announce tax rises or budget cuts in order to adhere to her declared borrowing rules.

Previously on Thursday, estimates indicated there was a twenty-two billion pound deficit for the Treasury chief to resolve, which is at the lower end of projections.

"It is a joint responsibility between the central bank and the administration to bear down further on some of the sources of inflation," Reeves told reporters in Washington, at the yearly gatherings of the IMF and global financial institution.

Revenue Pledges and International Concerns

While much of the focus has been on likely tax rises, the chancellor said the most recent figures from the OBR had not changed her commitment to manifesto promises not to raise rates on earnings tax, sales tax or social security contributions.

She attributed an "uncertain global environment" with increasing geopolitical and trade tensions for the Budget revenue measures, likely to be focused on those "with the broadest shoulders."

Global Trade Tensions

Referring to worries about the United Kingdom's commercial links with China she said: "The UK's security interests invariably come first."

Last week's announcement by Chinese authorities to strengthen export controls on critical minerals and other materials that are key for high-technology production led American leader Donald Trump to propose an further 100% tariff on imports from the Asian country, increasing the possibility of an all-out trade war between the two global powers.

The American finance chief described the Chinese action "economic coercion" and "a international production control attempt."

Asked about considering the American proposal to participate in its conflict with China, Reeves said she was "deeply worried" by China's actions and urged the Chinese government "to avoid restrictions and restrict access."

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

"In my view there are fields where we must confront China, but there are also valuable opportunities to trade with China's economy, including banking sector and other areas of the economic system. We've got to maintain that equilibrium appropriate."

The chancellor also affirmed she was working with G7 counterparts "on our own essential resources plan, so that we are more independent."

NHS Drug Costs and Funding

The Chancellor also admitted that the price the National Health Service spends on drugs could go up as a result of current negotiations with the US government and its drugs companies, in exchange for lower tariffs and funding.

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

Last month, the Science Minister said the price the health service spends on drugs would must rise to stop companies and drug research funding departing from the UK.

The Chancellor informed media: "We have seen as a result of the pricing regime, that drug testing, new drugs have not been offered in the UK in the way that they are in other EU nations."

"Our aim is to ensure that patients receiving care from the NHS are able to obtain the top critical drugs in the world. And so we are looking at these issues, and... seeking to attract increased investment into the UK."