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The UK swung to a record monthly budget surplus of £30.4bn in January, driven by higher tax receipts, in a boost for chancellor Rachel Reeves ahead of next month’s Spring Statement.
The surplus was double that recorded in January last year and the highest for any month since records began in 1993, the Office for National Statistics said on Friday.
The surplus was also £6.3bn above a November forecast from the Office for Budget Responsibility, the UK’s fiscal watchdog.
January is important for the public finances because the deadline for receipts from self-assessed income taxpayers and those with capital gains tax bills falls at the end of the month.
According to provisional estimates from the ONS, self-assessed income and capital gains tax receipts were £46.4bn in January, up from £10.5bn in the same period last year.
Friday’s figures from the ONS come as the Labour government remains under pressure to boost the economy, following a year of lacklustre growth in 2025.
The government announced £26bn in tax rises last year, following £40bn of tax increases in the 2024 Budget, raising the overall burden to a record high of 38 per cent of GDP by the end of parliament.
The OBR will deliver its latest forecasts for economic growth and the public finances alongside the Spring Statement on March 3.
Separate data released on Friday showed that retail sales in the UK rose more than expected in January.
The ONS said that sales volumes rose 1.8 per cent last month, following a 0.4 per cent increase in December. Economists polled by Reuters had forecast a 0.2 per cent rise.