Rachel Reeves has been handed a surprise £30.4 billion January surplus in a major boost ahead of next month’s Spring Statement.
Britain notched up the biggest monthly surplus since records began in 1993, according to the Office for National Statistics.
The windfall was driven by a surge in self-assessed tax payments and a sharp fall in debt interest costs.
It means the Government took in far more than it spent last month — and £6.3 billion more than the Office for Budget Responsibility forecast.
The surplus was also £15.9 billion higher than in January last year.
Central government tax receipts jumped by £13.3 billion to £109.7 billion.
Capital gains tax alone soared by £7 billion to £17 billion — beating expectations — after increases announced in Labour’s first Autumn Budget in 2024.
Self-assessment income tax payments also surged by £3.6 billion to £29.4 billion.
January is traditionally a strong month for tax receipts — but this year smashed previous records. Government spending edged down slightly by £0.6 billion to £86.1 billion.
A key factor was falling debt interest payments, which dropped by £5 billion to £1.5 billion — the lowest level since March 2020. Lower interest rates have helped ease pressure on the public finances.
ONS chief economist Grant Fitzner said January had delivered the “highest surplus since monthly records began”.
He added that borrowing over the first 10 months of the financial year is now running lower than at the same point last year.
The figures land just weeks before Reeves delivers her Spring Statement on March 3.
Chief Secretary to the Treasury James Murray said: “We have the right plan to build a stronger, more secure economy. We have doubled our headroom… and borrowing this year is forecast to be the lowest since before the pandemic.”
But Shadow Chancellor Mel Stride hit back: “Labour have borrowed £112.1 billion so far this year — the fifth highest borrowing on record.
Record-high taxes and irresponsible spending have weakened the economy.”
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