Good Morning Britain threw viewers a curveball on Wednesday morning (26 March) when Susanna Reid cut into the usual chat with a breaking update on the UK economy—just hours ahead of the government’s Spring Statement, reports the Manchester Evening News.
Sitting alongside Richard Madeley, Susanna broke the news that inflation had dipped slightly last month, delivering what could be a small win for the Chancellor. “Our breaking news this morning, good news for the Chancellor perhaps,” she began. “The cost of living fell last month, according to official figures released in the last few minutes. Inflation went down by 0.2 per cent in February.”
But before anyone got too excited, she was quick to add that inflation is still sitting at 2.8 per cent—well above the Bank of England’s 2 per cent target. So, while it’s technically a drop, it’s hardly time to celebrate just yet, reported Bristol Live.
Richard then jumped in, bringing the focus back to the bigger picture. He reminded viewers that this all feeds into Rachel Reeves’ much-anticipated Spring Statement, set to be revealed at 12.30 pm on the same day, with live coverage on ITV News. And yes, welfare cuts are still very much on the table.
To help unpack it all, Richard and Susanna brought in ITV political correspondent Louisa James, who gave a clearer sense of what the numbers really mean—and it’s not exactly cheerful.
“That is one of many challenges for Rachel Reeves today,” Louisa explained. “Those inflation figures that we’ve just had, although they’ve come down, are still much higher than she would like them to be.” She pointed out that this means the Chancellor’s financial wiggle room has shrunk considerably.
According to Louisa, Reeves is now facing a massive £15 billion gap she needs to fill just to balance the books and create a bit of breathing space. That’s no small task, and it sounds like the approach will hit some groups harder than others.
She went on to say that the Chancellor is expected to claw back £5 billion through benefit cuts and another £2.2 billion by trimming the civil service. But there’s a catch—ITV News has crunched the numbers and believes those welfare cuts would only save £3.4 billion, not the full £5 billion Reeves might be banking on.
And what are those cuts likely to look like? Louisa suggested that we could see Universal Credit incapacity benefits frozen until 2030, meaning they won’t rise with inflation for years. On top of that, there might be a reduction in the basic Universal Credit rate come 2029.
“Both of which will come as more bad news to those affected,” Louisa noted, summing up what’s shaping up to be a difficult day for many. So, while inflation’s on the slide, for now, the relief might be short-lived if the Spring Statement goes the way many are expecting.
