UK public sector finances see surplus in January

The Office for National Statistics (ONS) has today revealed UK public sector net borrowing switched to a surplus in January – boosted by a sharp increase in income tax receipts and corporation tax inflows.

According to the ONS, public sector net borrowing registered a surplus of £3.735 billion – representing the biggest surplus since July 2008.

For the year to date, borrowing stands at £113 billion – more than £14 billion lower on levels a year ago.

The figures suggest that the Government is on target to keep its borrowing under £148.5 billion by the end of the financial year to March 2011.