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 (ONS).
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.
Good news for the economy also came in the form of retail sales, which recorded a far better than expected January.
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.
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