The UK public sector unexpectedly posted a surplus in January as resilient tax revenues offset the prices of the federal government’s vitality assist schemes, within the ultimate set of public finance figures earlier than subsequent month’s Finances.

The general public sector registered a £5.4bn surplus final month, in line with information revealed by the Workplace for Nationwide Statistics on Tuesday. That was decrease than the excess in the identical month final 12 months, however economists polled by Reuters had anticipated £7.8bn of borrowing.

Self-assessed earnings tax receipts have been £21.9bn, which was the best January determine since month-to-month data started in April 1999 and one-third larger than in January 2022.

Tax receipts in January are usually larger than in different months due to the UK self-assessment deadline, usually resulting in a public sector internet surplus.

Final month’s tax receipts have been partly offset by substantial spending on vitality assist schemes, mentioned the ONS.

Spending on central authorities debt curiosity reached £6.7bn, the best January determine since month-to-month data started in April 1997.

Within the monetary 12 months to January, the general public sector borrowed £116.9bn, £7bn greater than in the identical interval final 12 months, reflecting the affect of the vitality disaster on authorities spending and revenues.

Nonetheless, that was £30.6bn lower than forecast in November by the Workplace for Finances Accountability, the UK official watchdog.

Public sector debt, or borrowing accrued over time, was 98.9 per cent of gross home product, a stage final seen within the early Nineteen Sixties.

Jeremy Hunt, the UK chancellor, mentioned: “We’re rightly spending billions now to assist households and companies with the impacts of rising costs, however with debt on the highest stage because the Nineteen Sixties, it’s important we stick with our plan to scale back debt over the medium time period.”