Record-breaking budget surplus as government's tax income rises
#UK #budget surplus #tax income #Office for National Statistics #interest rates #January 2026 #inflation #public finances #government spending
📌 Key Takeaways
- Record‑breaking surplus of £30.4 billion in January 2026, highest since 1993
- Surplus up £15.9 billion from January 2025
- Tax revenue rose strongly, while government spending unchanged
- Lower interest rates reduced borrowing costs, contributing to surplus
- Data from Office for National Statistics (ONS)
- No inflation adjustment applied
📖 Full Retelling
The United Kingdom recorded a record‑breaking budget surplus of £30.4 billion in January 2026, the highest surplus since records began in 1993, as reported by the Office for National Statistics (ONS). This surplus arose because tax revenue was strongly up, while government spending remained essentially unchanged and borrowing costs fell due to lower interest rates. The figure represents a £15.9 billion increase compared with January 2025, though it is not inflation‑adjusted.
🏷️ Themes
UK Budget, Tax Revenue, Public Finances, Interest Rates, Economic Growth
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Original Source
Breaking Breaking Record-breaking budget surplus as government's tax income rises Sarah Taaffe-Maguire Business and economics reporter @taaffems Friday 20 February 2026 07:41, UK Why you can trust Sky News More money than ever has been left over in the public finances due to more tax being paid, official figures show. January had the biggest budget surplus since records began in 1993, according to data from the Office for National Statistics . It meant the government received more money than it spent last month, leaving £30.4bn left over. It's £15.9bn more than the surplus in January 2025, though the figures are not adjusted for inflation. While there was little change in government spending, the highest-ever recorded surplus resulted from revenue being "strongly up" and lower interest rates, the ONS said. Lower interest rates have meant borrowing money costs less. Subscribe to our Money newsletter For more information about how we use your data and your rights, you can visit our Privacy Centre . First name Last name Email Good news for the economy also came in the form of retail sales, which recorded a far better than expected January. More on Uk Economy Interest rate cut even more likely next month as inflation falls Unemployment hits highest rate in nearly five years Economy grows by worse-than-expected 0.1% in final quarter of 2025 Related Topics: UK Economy The total volume of retail sales, which measures the quantity bought, increased by 1.8% last month, the ONS said. Retail sales figures matter as they measure household consumption, the largest expenditure in the UK economy. Be the first to get Breaking News Install the Sky News app for free This breaking news story is being updated and more details will be published shortly. Please refresh the page for the latest version. You can receive breaking news alerts on a smartphone or tablet via the Sky News app . You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news...
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