Biggest monthly surplus in public finances since 1993.

January recorded the biggest monthly surplus in public finances since 1993, when records began.

Income from taxes beat public spending by £14.9bn in January.

The amount of surplus was more than economists’ forecasts of £10bn.

The surplus was £5.6bn greater than January 2018.

January is a key revenue-raising month as it is when taxpayers submit their self-assessment returns.

Analysts said the reduction in borrowing should give Chancellor Philip Hammond surplus extra money for his next economic update.  Due in the spring, amid acute Brexit concerns.

Howard Archer, chief economic adviser to the EY Item Club, said:

“A record high surplus on the January public finances provides a much-needed welcome boost for Chancellor Philip Hammond. As he faces a worrying backdrop to his Spring Statement on 13 March.

“With the economy clearly struggling early on in 2019 after a sharp slowdown in the fourth quarter of 2018.  [And] the Brexit situation highly uncertain, the chancellor will have a lot on his mind when he presents the Spring Statement.

“It looks highly likely that he will have to announce downgraded growth forecasts from the OBR [Office for Budget Responsibility]. At least for the near term, with possible negative ramifications for expected budget deficits.”

Office for National Statistics (ONS) data

Office for National Statistics (ONS) data also showed that borrowing in the current financial year to January was £21.2bn. £18.5bn less than the same period last year and the lowest year-to-date figure for 17 years.

The ONS added that public sector net debt increased by £40.5bn to £1.8tn in January, equivalent to 82.6% of gross domestic product (GDP).

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