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Chancellor Reeves has revealed she is planning "specific steps to tackle household expense pressures" in next month's Budget.

In comments to the BBC, she stated that curbing inflation is a shared duty of both the administration and the Bank of England.

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

Possible Energy Bill Interventions

Sources suggest the government could take action to reduce energy bills, for instance by cutting the current 5% level of value-added tax applied on energy.

An additional option is to cut some of the regulatory levies currently added to bills.

Budgetary Constraints and Analyst Expectations

The administration will receive the next draft from the official forecaster, the OBR, on the start of the week, which will show how much room there is for such measures.

The consensus from the majority of analysts is that the Chancellor will have to announce higher taxes or spending cuts in order to adhere to her self-imposed debt limits.

Previously on the same day, estimates showed there was a £22 billion gap for the Treasury chief to address, which is at the lower end of forecasts.

"It is a shared job between the central bank and the administration to further reduce some of the sources of inflation," the Chancellor told the BBC in the US capital, at the yearly gatherings of the IMF and World Bank.

Revenue Commitments and Global Issues

While much of the focus has been on likely tax rises, the Treasury chief said the most recent data from the fiscal watchdog had not changed her pledge to campaign commitments not to increase tax levels on income tax, VAT or National Insurance.

She blamed an "uncertain world" with growing international and commercial tensions for the Budget revenue measures, likely to be targeted on those "wealthiest."

Global Economic Disputes

Commenting on concerns about the UK's commercial links with China she said: "The UK's national security always take priority."

Last week's declaration by China to strengthen trade restrictions on critical minerals and other resources that are key for high-technology manufacturing led US President Donald Trump to suggest an extra 100% import tax on imports from the Asian country, raising the prospect of an full-scale commercial conflict between the two global powers.

The American finance chief described the Chinese action "commercial pressure" and "a international production power grab."

Questioned on considering the US offer to participate in its dispute with China, the Chancellor said she was "extremely troubled" by Chinese actions and urged the Chinese government "not to put up barriers and restrict access."

She said the action was "harmful for the global economy and generates further obstacles."

"It is my opinion there are fields where we must confront Chinese policies, but there are also important chances to sell into China's economy, including banking sector and other sectors of the economy. We've got to get that balance appropriate."

The Treasury chief also confirmed she was collaborating with G7 counterparts "on our own essential resources approach, so that we are less reliant."

Health Service Medicine Pricing and Investment

The Chancellor also admitted that the price the National Health Service spends on medicines could increase as a consequence of current talks with the US government and its drugs companies, in return for lower tariffs and funding.

Some of the biggest global drug companies have said in recent statements that they are either halting or canceling projects in the United Kingdom, with some attributing the low prices they are receiving.

Last month, the government science advisor said the price the health service spends on drugs would must go up to stop companies and pharmaceutical investment departing from the UK.

Reeves stated to the BBC: "It has been observed as a result of the pricing regime, that medical research, innovative medicines have not been provided in the UK in the extent that they are in other continental states."

"We want to guarantee that individuals getting care from the NHS are able to receive the top life-saving drugs in the world. And so we are looking at this situation, and... seeking to attract increased investment into the UK."