Borrowing surplus highest on record in January

(Sharecast News) - The UK government recorded its highest surplus in January since records began in 1993, according to figures released by the Office for National Statistics on Friday. The surplus came in at £30.4bn, above expectations of £24bn and double the figure from January 2025. It was also £6.3bn above the Office for Budget Responsibility's November 2025 forecast.

Borrowing in the financial year to January 2026 was £112.1bn, down 11.5% on the same period a year earlier, but still the fifth-highest April to January borrowing on record.

ONS chief economist Grant Fitzner said: "January - which is traditionally a strong month for self-assessed tax receipts - saw the highest surplus since monthly records began.

"Revenue was strongly up on the same time last year, while spending was little changed, due to lower debt interest payments largely offsetting higher costs on public services and benefits.

"Across the first ten months of the current financial year, borrowing is lower than the same period a year ago."

Separate data from the ONS showed that retail sales rose 1.8% on the month in January following a 0.4% increase in December and comfortably beating expectations for 0.2% growth.

On a yearly basis, sales were up 4.5%, ahead of expectations for a 2.8% jump.

Grant Fitzner said: "Retail sales rose slightly in the latest three months, as sales continued to pick up in the new year following a weak November.

"Motor fuel sales increased a little across the period, while sales of art works, tech retailers and furniture stores also performed well. These were partially offset by falls in supermarket sales."