The reduction follows today's announcement of the new iPad 2 due to go on sale in the UK on 25 March.
The reduction is accross the board and the 32GB model now costs £399 and the 64GB model costs just £479. UK customers add an extra £100 to each model to upgrade to the WiFi and 3G unit (making it £429, £499 and £579 for the 16, 32, and 64GB models respectively).
The price cut only seems to apply to the original iPad model and no price cut has been announced in the US (where the iPad 2 is now on sale). We expect the price of all models to raise back to the orginal cost when the iPad 2 is released.