The UK government achieved a record budget surplus of £30.4 billion in January, marking the highest monthly surplus since records began in 1993 and nearly doubling the £15.4 billion from the previous January.
This significant boost was primarily driven by a surge in tax receipts, including a substantial increase in capital gains tax (nearly £17 billion, up 69% year-on-year), higher employers' National Insurance contributions (£2.9 billion), and a rise in income tax receipts (£3.6 billion), partly attributed to frozen tax thresholds. While the figures offer positive news ahead of the Spring Statement, economists cautioned that public finances remain "finely balanced" due to slow wage growth and broader economic expansion.
Borrowing for the 10 months to January stood at £112.1 billion, though 11.5% lower than the previous year. The government also benefited from reduced interest payments on its debt, offsetting higher public service costs.
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