Rare boost for Reeves as government gets record borrowing surplus ahead of spring statement
Why UK government finances are suddenly better than expected
- Britain recorded its largest ever public sector net borrowing surplus in January, reaching £30.4 billion, the highest since monthly records began in 1993.
- This surplus was £6.3 billion greater than the Office for Budget Responsibility's forecast and £15.9 billion higher than the same month last year.
- The significant increase was primarily driven by a surge in self-assessed tax payments and a substantial fall in debt interest costs, which reached their lowest level in almost six years.
- The government achieved a record tax take of £109.7 billion for January, boosted by higher capital gains tax receipts and self-assessment income tax.
- These figures provide a boost for the Chancellor ahead of the spring statement, with the Chief Secretary to the Treasury highlighting strengthened state finances, while the Shadow Chancellor criticised high borrowing for the financial year.
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