Record borrowing surplus in the UK in January

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The UK defeated a record government in January, where it borrowed surplus, primarily thanks to self-rated tax returns, according to official figures.

The National Bureau of Statistics said there was a public sector net borrowing surplus of £15,444 billion last month.

This was over the £146.9 billion surplus a year ago, the largest since monthly record began in 1993.

The government usually sees the budget surplus that occurs in January when tax revenue received is greater than government spending, thanks to self-value tax payments.

The numbers come as Prime Minister Rachel Reeves prepares to release a spring spending statement in March.

The surplus was increased due to lower Treasury debt service costs after the retail price index, a measure of inflation, showed a lower than expected rise.

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

Jessica Burnaby, Deputy Director of Public Sector Treasury, said:

“However, for the entire fiscal year so far, borrowings last year are still rising, the fourth highest record to this year.”

Treasury Secretary Darren Jones said the government is “promising to provide economic stability and meet non-negotiable fiscal rules.”

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