Government posts record borrowing surplus in January amid rise in tax receipts

Britain notched up a record Government borrowing surplus in January thanks largely to self-assessed tax returns, according to official figures.

The Office for National Statistics (ONS) said there was a public sector net borrowing surplus of £15.4 billion last month.

It is more than the surplus seen a year ago and is the largest since monthly records began in 1993.

Spending

The Government typically sees a budget surplus – which takes place when tax revenue received is larger than government spending – in January thanks to self-assessment tax payments.

The figures come as Chancellor Rachel Reeves prepares to deliver the Spring spending statement in March.

The surplus was boosted by lower debt repayment costs for the Treasury, after the retail price index, a measure of inflation, showed a smaller-than-forecast rise.

However, the ONS said spending on public services, benefits and debt interest all increased since January 2024.

Income

ONS deputy director for public sector finances Jessica Barnaby said: “While the public finances are often in surplus in January, this year saw the biggest monthly surplus on record, with high January self-assessment receipts bolstering income.

“However, over the financial year to date as a whole, borrowing was still up on last year and was the fourth-highest on record for the year to date.”

Chief Secretary to the Treasury, Darren Jones said the Government is “committed to delivering economic stability and meeting our non-negotiable fiscal rules”.