Stories

Wed, 25 Feb 2026

Wed, 25 Feb 2026 Faisal Islam: Is Reeves right in saying we're turning a corner?

The Chancellor is trying to use this moment as a launching pad for a wider attempt to gee up consumer and business confidence.

* Energy bills will fall by 7% in April
* Chancellor Rachel Reeves visited Octopus energy headquarters to highlight the cut
* She said the UK economy is "beginning to turn a corner" and people will start to feel the change in their pockets this year
* The 7% cut to electricity bills is a result of the government's strategy to lower inflation through policy and tax changes
* Energy companies are expected to pass on the £150 cut to every customer, even those who had fixed their bills
* The cut is unusual as it comes from shifting the burden of green levies from bills into general taxation
* However, this decision also means that more people will be taxed at higher rates as their pay increases due to the extension of the freeze on income tax thresholds
* The UK economy has shown some positive signs recently, including better figures for high street spending and consumer confidence, but the numbers are still mixed
* The official independent forecast numbers for the economy, prices, borrowing, and jobs will be released next week at the Treasury Spring Statement.