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Chancellor Reeves has announced she is preparing "focused steps to tackle household expense challenges" in the upcoming financial statement.

In comments to the BBC, she emphasized that curbing inflation is a joint task of both the government and the central bank.

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

Potential Energy Bill Interventions

Sources suggest the government could take action to bring down utility costs, for instance by cutting the current 5% level of value-added tax charged on energy.

A further option is to reduce some of the regulatory levies presently included in household expenses.

Budgetary Constraints and Expert Expectations

The government will receive the next draft from the independent fiscal watchdog, the OBR, on the start of the week, which will clarify how much room there is for such actions.

The expectation from the majority of experts is that Reeves will have to announce tax increases or budget cuts in order to adhere to her self-imposed debt limits.

Earlier on Thursday, estimates suggested there was a £22 billion deficit for the chancellor to resolve, which is at the lower end of expectations.

"There's a collective job between the central bank and the administration to further reduce some of the drivers of inflation," Reeves informed the BBC in Washington, at the annual meetings of the International Monetary Fund and World Bank.

Tax Pledges and Global Concerns

While a great deal of the attention has been on likely tax increases, the Treasury chief said the latest information from the fiscal watchdog had not changed her pledge to election pledges not to raise rates on income tax, VAT or National Insurance.

She attributed an "uncertain global environment" with increasing geopolitical and trade issues for the fiscal tax moves, likely to be targeted on those "with the broadest shoulders."

International Trade Tensions

Referring to concerns about the United Kingdom's economic relations with the Asian nation she said: "Our national security always are paramount."

Recent announcement by China to tighten export controls on critical minerals and other resources that are key for advanced tech manufacturing led US President Donald Trump to propose an extra 100% import tax on imports from China, raising the risk of an all-out commercial conflict between the two largest economies.

The US Treasury Secretary labeled China's action "economic coercion" and "a international production power grab."

Asked about considering the American proposal to join its battle with the Asian nation, Reeves said she was "very concerned" by Chinese measures and urged the Beijing authorities "to avoid restrictions and restrict access."

She said the decision was "damaging for the global economy and generates further obstacles."

"It is my opinion there are areas where we should challenge China, but there are also significant prospects to export to Chinese markets, including financial services and other sectors of the economy. We've got to get that equilibrium appropriate."

The chancellor also affirmed she was working with international partners "on our own essential resources plan, so that we are reduced dependence."

NHS Drug Pricing and Investment

Reeves also acknowledged that the cost the NHS spends on medicines could increase as a consequence of current discussions with the Trump administration and its pharmaceutical firms, in return for lower tariffs and investment.

Some of the biggest global pharmaceutical manufacturers have said recently that they are either pausing or abandoning projects in the United Kingdom, with some attributing the insufficient payments they are receiving.

Last month, the government science advisor said the price the health service spends on drugs would need to go up to halt businesses and pharmaceutical investment departing from the United Kingdom.

Reeves stated to media: "It has been observed due to the pricing regime, that medical research, innovative medicines have not been offered in the United Kingdom in the way that they are in other continental states."

"We want to guarantee that individuals receiving treatment from the NHS are can receive the best essential drugs in the globe. And so we are looking at all of that, and... aiming to attract additional investment into the UK."