UK Public Finances Get Surprise Boost After Record January Income Tax Haul

UK five pound, ten pound, twenty pound, and fifty pound notes are shown with one pound coins in a file photo dated Jan. 26, 2018. Dominic Lipinski/PA

The UK government posted a monthly budget surplus in January despite its substantial spending commitments, due in part to record income tax payments.

According to the latest data from the UK’s Office for National Statistics (ONS), public sector net borrowing was in surplus by £5.4 billion ($6.5 billion) in January. The borrowing surplus was £7.1 billion less than in the same month in 2022, but was £5 billion larger than had been previously predicted by the Office for Budget Responsibility (OBR).