UK government runs unexpected budget surplus in January

Britain's authorities ran an unexpected fund surplus successful January, reflecting beardown income taxation receipts that could springiness concern curate Jeremy Hunt a small much leeway than helium thought arsenic helium prepares his yearly budget.

The Office for National Statistics (ONS) connected Tuesday reported a seasonal fund surplus of £5.42 cardinal ($6.51 billion) successful January, a period successful which millions of Britons wage their income taxation receipts.

A Reuters canvass of economists had pointed to nationalist assemblage nett borrowing, excluding state-owned banks, of £7.85 cardinal for January.

The ONS reported self-assessment income taxation receipts of £21.9 billion, the highest January fig since monthly records began and £5.5 cardinal much than past year.

"This suggests that the Chancellor volition person immoderate wiggle-room successful the fund to money near-term taxation cuts and/or spending rises," said Ruth Gregory, lawman main UK economist astatine consultancy Capital Economics, of the January surplus.

But she warned that the Office for Budget Responsibility was apt to downgrade its estimates for Britain's imaginable economical maturation complaint - thing that would bounds the scope for immoderate unexpected giveaways by Hunt connected March 15.

The figures, which are not adjusted for inflation, showed the taxation receipts were offset by £6.7 cardinal of involvement payable connected index-linked authorities bonds, the highest January full connected record.

"Getting indebtedness down volition necessitate immoderate pugnacious choices, but it is important to trim the magnitude spent connected indebtedness involvement truthful we tin support our nationalist services," concern curate Jeremy Hunt said successful effect to the data.

The authorities spent much than £10 cardinal connected its vigor enactment for households successful January, portion it besides paid £2.3 cardinal to the European Union to settee a quality implicit customs duties.