UK government borrowing surplus rises in January from prior year

(Alliance News) - The UK's public sector borrowing surplus more than doubled in January from the year before, according to the Office for National Statistics on Wednesday, though the debt-to-GDP ratio remained at historic highs.

UK public sector net borrowing, excluding public sector banks, was in surplus in January 2024 by GBP16.7 billion, which was more than double that of January 2023. It was the largest surplus since monthly records began in 1993 in nominal terms, the ONS noted.

"Each January tax receipts are always higher than in other months, owing to receipts from self-assessed taxes," the ONS explained.

Meanwhile, in the fiscal year to January, borrowing was GBP96.6 billion, which was GBP3.1 billion less than the equivalent 10-month period of the prior year.

"This is the first time in the present financial year that year-to-date borrowing has been lower than in the equivalent period in the last financial year, partly because central government receipts have been revised," the ONS said.

Public sector net debt was GBP2.657 trillion at the end of the month, provisionally estimated to be around 96.5% of the UK's annual gross domestic product - remaining at levels last seen in the early 1960s.

By Elizabeth Winter, Alliance News deputy news editor

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