Britain set to overshoot borrowing forecasts

Britain delivered a smaller-than-expected budget surplus in January, leaving Chancellor of the Exchequer Rachel Reeves on track to overshoot official borrowing forecasts.

Government revenue exceeded spending by £15.4 billion ($19.5 billion), the Office for National Statistics said Friday. It was the largest January surplus on record but well below the £20.5 billion predicted by the Office for Budget Responsibility.

It left the deficit in the first 10 months of the fiscal year at £118.2 billion - £12.8 billion more than the OBR forecast in October. It leaves borrowing in track to significantly overshoot the full-year forecast of £127.5 billion.


January is the biggest tax month of the year as the Treasury receives income relating to self-assessed liabilities incurred during the previous fiscal year. The payment deadline is January 31, though a significant amount comes in during February. The disappointing outturn last month piles further pressure on Reeves, who is reported to be seeking further savings from government departments other than health, education and defense to avoid breaking her self-imposed fiscal rules.