Government's January surplus disappoints at 15.4bn, piling pressure on Chancellor

In January, the UK government posted a surplus of £15.4 billion, which was less than the forecasts of £21 billion from economists and the £19 billion projected by the Office for Budget Responsibility (OBR). Total borrowing this fiscal year reached £118.2 billion, significantly higher than last year, suggesting potential difficulty for the chancellor in managing finances ahead of the spring statement. The debt-to-GDP ratio is now at 95.3%, prompting fears about meeting future debt reduction targets, possibly necessitating budget cuts or tax increases.

January's smaller surplus raises concerns over the chancellor's fiscal headroom, potentially compelling spending cuts or tax increases in the upcoming budget.

The cash-strapped government experienced a surplus of £15.4 billion, falling short of the predictions made by economists and the Office for Budget Responsibility.

Read at Business Matters