Uk Government Budget Surplus Reaches Record £30.4bn in January as Taxes Jump
The uk government budget surplus surged to a record £30. 4bn in January, driven by a sharp rise in tax receipts and giving Chancellor Rachel Reeves a notable fiscal boost ahead of the Spring Statement on 3 March.
Uk Government Budget Surplus driven by capital gains and self-assessment
Official figures show tax receipts in January totalled £133. 3bn, 13. 8% higher than the previous January, producing the £30. 4bn surplus — the largest monthly total since records began in 1993. A near-£17bn jump in capital gains tax, 69% higher than January 2025, was a major factor behind the increase.
Tax receipts far outpaced spending in January
National Insurance contributions rose by £2. 9bn in January and income tax receipts were £3. 6bn higher than a year earlier, adding to the inflow. Self-assessed tax payments, typically concentrated in January, contributed strongly, while overall spending moved little that month, leaving the surplus unusually large compared with other months.
What the numbers mean for borrowing and the Spring Statement
Borrowing in the first 10 months of the financial year was £112. 1bn, 11. 5% lower than the same period a year earlier, though still among the higher totals historically for that span. The Office for Budget Responsibility had forecast a smaller January surplus of about £24bn, making the actual figure a surprise uplift for the Treasury ahead of the 3 March Spring Statement.
The Chancellor now enters the Spring Statement with the record January outcome to point to, but forecasters and officials caution the public finances remain tightly poised while wage growth and broader economic expansion remain slow. Treasury commentary in the official material highlighted plans to more than halve borrowing by 2030-31 so that money can be redirected to policing, schools and the NHS.
Economists noted that actions taken last year — including changes prompting investors to realise gains before an expected capital gains tax rise — helped push the near-£17bn capital gains tax haul in January. That pattern, together with a freeze on income tax thresholds that has lifted more income into higher tax brackets, contributed to the uk government budget surplus figure for the month.
Despite the one-month strength, officials stressed longer-term challenges remain: lower debt interest payments in January partly offset higher costs on public services and benefits, and commentators said the budget position still reflects broader pressures on the economy.
The next confirmed event on the calendar is the Spring Statement on 3 March, when the Chancellor will set out short-term fiscal plans in light of the January figures and the latest borrowing trajectory for the year.
