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Treasury head Rachel Reeves has revealed she is planning "focused action to address household expense challenges" in next month's financial statement.

In comments to the BBC, she stated that lowering inflation is a collective duty of both the administration and the central bank.

The UK's inflation rate is projected to be the most elevated among the Group of Seven advanced economies this year and the following year.

Possible Utility Cost Measures

It is understood the administration could intervene to lower utility costs, such as by reducing the present 5% rate of value-added tax applied on energy.

A further approach is to cut some of the government charges currently added to household expenses.

Fiscal Constraints and Expert Expectations

The government will receive the next report from the official forecaster, the OBR, on Monday, which will show how much room there is for such measures.

The view from most experts is that Reeves will have to introduce tax increases or budget cuts in order to meet her self-imposed fiscal targets.

Earlier on the same day, estimates indicated there was a £22bn gap for the chancellor to resolve, which is at the lower end of forecasts.

"There's a collective job between the Bank of England and the administration to further reduce some of the causes of inflation," Reeves stated to reporters in the US capital, at the yearly gatherings of the International Monetary Fund and global financial institution.

Tax Commitments and International Issues

While much of the attention has been on likely tax increases, the Treasury chief said the most recent information from the OBR had not altered her pledge to manifesto promises not to raise tax levels on income tax, sales tax or social security contributions.

She attributed an "unpredictable world" with rising international and trade issues for the Budget revenue measures, likely to be directed on those "most able to pay."

International Trade Disputes

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

Recent statement by China to strengthen export controls on rare earths and other materials that are crucial for high-technology manufacturing led American leader the US President to propose an additional 100% import tax on goods from China, increasing the possibility of an all-out trade war between the two economic giants.

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

Inquired about accepting the US offer to join its dispute with the Asian nation, Reeves said she was "very concerned" by China's measures and called on the Chinese government "to avoid restrictions and restrict access."

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

"In my view there are sectors where we need to address China, but there are also valuable prospects to trade with Chinese markets, including financial services and other areas of the economy. We've got to maintain that equilibrium correct."

The Treasury chief also confirmed she was cooperating with international partners "on our own critical minerals approach, so that we are reduced dependence."

NHS Medicine Costs and Investment

The Chancellor also acknowledged that the price the NHS spends on medicines could rise as a result of ongoing talks with the US government and its drugs companies, in return for reduced taxes and investment.

A number of the biggest global drug companies have said in recent statements that they are either halting or canceling operations in the UK, with some blaming the low prices they are receiving.

Recently, the Science Minister said the cost the health service pays for medicines would must rise to stop firms and drug research funding departing from the United Kingdom.

Reeves stated to media: "We have seen because of the pricing regime, that medical research, recent pharmaceuticals have not been offered in the UK in the manner that they are in other European countries."

"The objective is to ensure that people receiving care from the NHS are able to obtain the best essential drugs in the world. And so we are reviewing these issues, and... aiming to secure increased investment into Britain."