Fri, 20 Feb 2026

Fri, 20 Feb 2026 Higher tax helped UK government reach record January surplus

The government took in more from tax receipts than expected, official data suggests.

* The government's finances saw a £30.4bn surplus in January, the highest monthly surplus since records began in 1993.
* The surplus was driven by an uptick in tax receipts, which far outstripped spending, with £133.3bn received in taxes, a 13.8% increase from last January.
* Capital gains tax receipts saw a major boost, increasing by nearly £17bn to £34.6bn, largely due to investors disposing of assets before an expected tax rise.
* National Insurance contributions also increased by £2.9bn, and income tax receipts rose by £3.6bn.
* Borrowing in the 10 months to January was £112.1bn, a 11.5% decrease from the same period last year, but still one of the highest on record.
* HM Treasury forecast borrowing for 2026 to be "the lowest since before the pandemic".
* Chief Secretary to the Treasury James Murray said that while there is more work to do to reduce public debt, the government will halve borrowing by 2030-31.
* Analysts noted that while the figures are positive news for Chancellor Rachel Reeves ahead of the Spring Statement, they also highlight the ongoing challenges facing the economy.
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