UK records largest ever budget surplus ahead of spring forecast.

The Office for National Statistics reported a public sector surplus of £30.4bn in January 2026, double the surplus in January 2025 and above the OBR's November forecast; government borrowing for the financial year to January was £112.1bn, lower than a year earlier.

The UK recorded a public sector surplus of £30.4bn in January 2026, the highest monthly surplus since records began. The Office for National Statistics published the figures and noted the surplus was double that of January 2025 and above forecasts. Higher self-assessed income and capital gains tax receipts contributed to the outcome. The data arrive just over a week before the Office for Budget Responsibility's spring forecast and a scheduled parliamentary statement by Chancellor Rachel Reeves. Key figures and comments: - The public sector surplus was £30.4bn in January 2026, double the January 2025 figure and £6.3bn higher than the OBR's November forecast. - Combined self-assessed income and capital gains tax receipts were provisionally estimated at £46.4bn in January, £10.5bn more than January 2025. - Government borrowing for the financial year to January was £112.1bn, £14.6bn (11.5%) lower than the same 10-month period a year earlier; the ONS said this remained the fifth-highest April–January on record. - Grant Fitzner, chief economist at the ONS, said revenue was strongly up while spending was little changed, with lower debt interest largely offsetting higher costs on public services and benefits. - James Murray, chief secretary to the Treasury, said: "We have the right plan to build a stronger, more secure economy," and noted a government target to more than halve borrowing by 2030-31. Summary: The January surplus strengthens the short-term fiscal position and coincides with higher self-assessed tax receipts and lower borrowing year-on-year. The Office for Budget Responsibility will publish its spring forecast on Tuesday 3 March, after which Chancellor Rachel Reeves is due to make a parliamentary statement.