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UK runs record January budget surplus but misses forecasts

The UK government reported a budget surplus of 15.4 billion pounds for January 2025, a significant improvement from the 7.6 billion pounds surplus recorded in January of the previous year. This surplus was largely due to a decrease in debt interest payments, which fell to 4.4 billion pounds from 6.7 billion pounds, attributed to lower Retail Prices Index (RPI) inflation. Additionally, income tax receipts increased by 5.9 billion pounds, reflecting higher wages and the freezing of tax thresholds. However, this surplus was offset by a 4.6 billion pounds increase in welfare payments, driven by inflation-linked benefits and cost-of-living support measures. Despite the monthly surplus, the UK's public sector net borrowing for the financial year up to January 2025 was 96.6 billion pounds, which is 3.5 billion pounds less than the same period in the previous year.

Read the Full Reuters Article at:
[ https://www.reuters.com/world/uk/uk-runs-154-billion-pound-budget-surplus-january-2025-02-21/ ]