Government posts record borrowing surplus in boost for Chancellor

Henry Saker-Clark, Press Association Deputy Business Editor

Fri, 20 February 2026 at 4:27 pm GMT+9 1 min read

Britain notched up a record Government borrowing surplus last month in a surprise boost for Chancellor Rachel Reeves ahead of the spring statement, according to official figures.

The rise was sparked by a jump in self-assessed tax payments and a fall in debt interest to the lowest level since March 2020.

The Office for National Statistics (ONS) said there was a public sector net borrowing surplus of £30.4 billion in January.

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It is the highest borrowing surplus – when the Government receives more in tax and other revenues than it spends – for any month since records began in 1993.

The surplus was also £6.3 billion bigger than predicted by the Office for Budget Responsibility (OBR) and £15.9 billion higher than the same month a year ago.

It came after the Government received a record tax take for January.

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 10 months of the current financial year, borrowing is lower than the same period a year ago.”

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