The UK government has recorded its largest monthly budget surplus on record, after tax income rose sharply at the start of 2026, according to new official figures.
Data released by the Office for National Statistics (ONS) shows the government took in £30.4 billion more than it spent in January, the biggest surplus since monthly records began in 1993. (The Guardian)
Strong tax receipts drive record result
January is traditionally a strong month for public finances because millions of people submit self-assessment tax returns before the end-of-month deadline. However, this year’s figures significantly exceeded expectations.
Higher revenues were driven largely by:
- Increased self-assessment income tax payments
- A surge in capital gains tax receipts
- Rising national insurance contributions
- Lower government debt interest costs
Economists say many investors sold assets ahead of anticipated tax changes, boosting capital gains tax income and pushing revenues well above forecasts. (The Guardian)
Overall government income reached more than £133 billion during the month, comfortably outpacing spending levels. (The Times)
Boost for Chancellor ahead of Spring Statement
The figures provide a political and economic boost for Chancellor Rachel Reeves ahead of her upcoming Spring Statement.
Government borrowing for the financial year so far is now running below official forecasts, suggesting public finances are performing better than expected despite slow economic growth last year. (The Times)
Treasury officials said the data showed the government’s economic plan was helping stabilise finances, although analysts warned the improvement may only be temporary.
Economy shows mixed picture
Alongside the surplus, retail sales also rose strongly in January, suggesting consumer spending picked up at the start of the year. (Financial Times)
However, economists caution that broader challenges remain, including:
- sluggish economic growth in late 2025
- rising unemployment pressures
- historically high national debt levels
UK public sector debt currently stands close to £2.9 trillion, equivalent to roughly 93% of GDP. (The Guardian)
What the surplus means
A budget surplus occurs when the government receives more in taxes than it spends during a specific period. While January often produces a surplus, the scale of this year’s figure — double that recorded a year earlier — surprised financial markets. (Financial Times)
Experts say the record does not necessarily mean taxes will fall or spending will rise immediately, as pressures on public services and long-term borrowing remain significant.
The government is expected to outline its next fiscal plans when the Spring Statement is delivered in early March.
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Tax tax tax tax.
Liebour govt for all to see !!!
Tax doesn’t have to be taxing. Until now.
Delusional
Wayne Ashcroft facts pal
Paul Martin tax season was in January so lots of payments on account and these monies will be refunded this time next year and they would not have that figure so unless they keep that surplus, they will be out of pocket come next year.
So the surplus is a myth.
Also your telling me the civil service that takes months to do the usual financial figures can turn around a report within 20 days, its not possible, its all lies.
Anything that comes out the government is made up, simple example inflation down? We ain’t seen it in our pockets anytime soon, still paying too much.
Starmer said food costs have come down, again delusional is fact!!!
much of this is CGT payments before she hikes the rates in april
Ian Banbrook it’s what you get when you freeze tax thresholds , steal pensioners money , increase taxes on businesses, she wanted headroom , but she can’t take any credit , the main issue was reduced global interest rates on the national debt approx £5 billion saved
Awful, smug woman. She doesn’t care about the true consequences of her policies.
And she thinks she has done good robbing every one blind.
You have still borrowed billions since coming to power, debt is up, growth down, inflation up unemployment up. Bloody useless
So now’s there’s enough money, we’ll see a mass building of council homes, a fairly funded NHS with no staff shortages, free university education, and a complete restoration of all the other cut public services.
So she’s stolen more then she thought and now is proud of it………
What about the £100 billion black hole the government have created since being in power? If its the biggest ever, then labour can unfreeze the personal tax freeze on working people
Then help hospitality and scrap the new rateable values and VAT
Why should this be unexpected news.. It’s obvious if we’re paying the highest tax rates in living history she should have a surplus.. The problem is how she spends it, with less money in the working people’s pockets.
More money to be wasted by another crap government 😒
So you can give us some money back in your spring statement next month.
Malcolm Hyder there is a pretty big hole to fill still.
Stuart Hooper You can’t trust her figures.
Funny that – capitol gains and assessments due this time of year but it won’t be the same next month – do your maths folks
Because she robbed the poor and the rich to give to the illegal immigrants and foreign countries.
She’s lying so much that she loses track of which lie covers which and whom
Happens every January as taxes get paid.
Tosh
It’s our bloody money we paid in taxes due to the self assessment cut off in January! The deficit will continue to get bigger from Feb onwards ……don’t get fooled by Labour spin AGAIN!
More money for those on benefits then . 😡
I was wary of voting Labour despite hating the Conservatives. But I’m selfish, I wanted a government that didn’t hit me with endless taxes as the Conservatives did. I suspected I’d be no better off under Labour. I didn’t vote for them, the only consolation I have.
No surprise there’s a record surplus, there’s a record tax take
Maybe she could take less off us now
2024 to 2025 Financial Year
Total Revenue Losses: £7,230 million
Value Added Tax (VAT): £2,920 million (40.4% of total losses)
Income Tax: £1,352 million (18.7% of total losses)
Fines and penalties: £1,325 million (18.3% of total losses)
National Insurance Contributions: £788 million (10.9% of total losses)
Corporation Tax: £520 million (7.2% of total losses)
Other remissions and write-offs: £325 million (4.5% of total losses)
2023 to 2024 Financial Year
Total Revenue Losses: £5,616 million
Value Added Tax (VAT): £2,624 million (46.7% of total losses)
Income Tax: £1,134 million (20.2% of total losses)
National Insurance Contributions: £739 million (13.2% of total losses)
Fines and penalties: £598 million (10.6% of total losses)
Corporation Tax: £382 million (6.8% of total losses)
Other remissions and write-offs: £139 million (2.5% of total losses)
Just in case you see anyone whining about boats, 15% rising to 22% of tax revenue loss is from pheonixing.
EVIL
The unnecessary pain and suffering caused to business and taxpayers. Absolutely vile!