UK posts record budget surplus in January

LONDON — The U.K. logged a record £16.7 billion ($21.1 billion) net budget surplus in January, according to official figures released on Wednesday.

The Office for National Statistics noted that the country's public finances usually run a surplus in January, unlike during other months, as receipts from self-assessed annual income tax payments come in.

Combined self-assessed income and capital gains tax receipts totaled £33 billion in January, the ONS said, down £1.8 billion from the same period of last year.

Total government tax receipts came in at a record £90.8 billion, up £2.9 billion compared to January 2023.

Government borrowing during the financial year spanning to the end of January 2024 was £96.6 billion, £3.1 billion lower than over the same 10-month period a year ago and £9.2 billion lower than the £105.8 billion previously forecast by the independent Office for Budget Responsibility.

Public debt was estimated at around 96.5% of annual gross domestic product, up 1.8 percentage points from January 2023 and holding at levels last seen in the early 1960s, the ONS highlighted.

"We provided hundreds of billions to pay wages, support business and protect lives during Covid, and to pay half of people's energy bills after Putin's invasion of Ukraine," the government's chief secretary to the Treasury, Laura Trott, said in a statement.

"But we can't leave future generations to pick up the tab, which is why we have taken tough decisions to help reduce borrowing versus what the OBR expected in March."

The figures on Wednesday mark the final set of public finances data before Finance Minister Jeremy Hunt delivers his Spring Budget, which outlines the government's fiscal policy for the year, on March 6.

With a general election due