Jeremy Hunt needed some good news this morning, when the monthly public sector finance update was released by the Office for National Statistics (ONS). Having promised meaningful tax cuts last month – and then rowed back expectations this month – the Chancellor was hoping for a notable surplus and reduction in borrowing to give himself a bit more room within his fiscal rules to cut tax.
January delivered. The ONS reports a surplus of £16.7 billion in January 2024 – not only double the surplus of the same month last year, but a record-breaking surplus (in nominal terms) since records began. Receipts jumped up to £111.4 billion – almost £4 billion more than January 2023 – while borrowing for the financial year rose to £96.6 billion, £3.1 billion less than was reported in the same time frame for the year before.
The Treasury tends to get an income bump in January when self-assessment tax returns are due.
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