Friday, February 20

UK government finances better than expected in January


Rachel Reeves walking outside Number 11 Downing Street, smiling and wearing a green blazer.
Chancellor Rachel Reeves has come under criticism for her public borrowing rules [Getty Images]

The government’s finances had a record monthly surplus in January as it took in more tax receipts than it spent.

The surplus – the difference between public spending and the tax take – was £30.4bn in January, according to the Office for National Statistics (ONS).

The ONS said it was the highest surplus in any month since records began in 1993, and more than double last January’s £15.4bn monthly surplus.

Analysts had expected the surplus to be £23.8bn. The government usually collects more tax than it spends in January compared with other months due to the collection of self-assessed taxes.

Separately, the ONS said retail sales volumes for January bounced back 1.8% from December.

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