Kay Burley dampened any optimism ministers may be feeling about the economy this morning by asking when Brits would start to actually “feel better” about their money.
Inflation unexpectedly fell to 2.5% from 2.6% in December, according to the Office for National Statistics.
It will come as welcome news for chancellor Rachel Reeves, who has been facing intense pressure over the UK’s current economic turmoil.
But the Sky News presenter was not willing to give the government any time to celebrate this morning.
Chief secretary to the Treasury Darren Jones said it was “good news” that inflation had dropped, although the government still has more to do.
Burley quickly replied: “You certainly do – the pound is plummeting, borrowing costs are sorrowing, inflation not really behaving how you would want it to.
“Why isn’t the Budget working the way you’d want it to?”
Jones said inflation had dropped, but Burley cut in: “You’ve got a long way to go!”
The Bank of England’s target for inflation is 2%.
The minister also noted that borrowing costs have gone up for many developing countries around the world, and the presenter pointed out: “Hence the word ‘soaring’.”
He hit back, saying he would not say “soaring”, and then said he would not provide a running commentary about the value of the pound.
Burley then asked: “We’re being told we need to give Rachel Reeves time – she’s not the Manchester United manager, she’s the chancellor of the Exchequer, how much time does she need?”
The minister replied: “There’s no denying that the economy this government inherited was one of low growth, high debt and public services on their knees. I think that’s why the British people voted for change.”
Burley pushed: “How long does she need? How long? Till we all feel better about the economy, the cost of living and the way we spend our money?”
He did not give a clear timeline, but pointed out that Labour has only been in power for six months.
So Burley asked again: “How long before we feel better about the economy?”
“It depends, Kay! Give me a specific example,” Jones said, exacerbated.
“I just have! People at home, listening this morning, when do people feel they’ve got more money in their pocket?” The presenter said.
The minister just said it should happen gradually in the coming years.
"It's good news that inflation is coming down".
— Sky News (@SkyNews) January 15, 2025
Chief Secretary to the Treasury @darrenpjones says the fall in inflation shows that the PM's "plan is working" but admits "we've still got more to do".https://t.co/xItZsH7tea
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Responding to the slight drop in inflation, shadow chancellor Mel Stride said: “Whilst this month’s reduction in inflation is welcome news, there are still challenges ahead, not least the National Insurance hikes - which some of will be passed on in higher prices - have yet to bite.
“What is key for our economy is to get growth going, but this has been killed stone dead by this government. The chancellor needs to urgently explain how she will now achieve this.”
Liberal Democrat Treasury spokesperson Daisy Cooper said: “This unexpected fall offers a glimmer of hope but the reality is the UK economy remains stuck in the mud.
“The chancellor’s Budget has failed. Growth is nowhere to be found after the damaging national insurance hike and stagflation remains a real threat.
“The Conservative Party’s economic vandalism cannot be overstated but the new government’s approach has been totally flawed.
“It is time for the chancellor to rethink and bring forward thought through ideas for growth like rebuilding our trade relationship with Europe and scrapping their counterproductive jobs tax.”