Ahead of the Chancellor’s spring statement next month, official figures show public sector borrowing has recorded the largest January surplus on record at £14.9bn, £5.6bn more than the same period last year, boosted by self assessed income tax payments which also hit a record high
Self-assessed income tax and capital gains tax (CGT) receipts combined were £21.4bn in January 2019, which is £3.1bn more than in January 2018, although the Treasury cautions late payments mean that the proportion of self-assessed taxes recorded in January and February can vary year-on-year and it is therefore advisable to consider these two months together.
Split out, self-assessed income tax receipts in January 2019 were £14.7bn, an increase of £1.9bn compared with January 2018; this is the highest January since records began in January 2000.
CGT receipts in January 2019 were £6.8bn, an increase of £1.2bn compared with January 2018 and also marking the highest January since records began in January 1998.
In contrast, stamp duty land tax receipts fell to £930m for the month, compared to £1.06bn in January 2018, reflecting a slowing down in the housing market.
Borrowing in the current financial year-to-date (April 2018 to January 2019) was £21.2bn, £18.5bn less than in the same period last year and the lowest year-to-date (YTD) for 17 years. Borrowing in the financial year ending March 2018 was £41.9bn, £3bn less than in the financial year ending March 2017 and the lowest financial year for 11 years.
Debt at the end of January 2019 was £1,782.1bn or 82.6% of gross domestic product (GDP); an increase of £40.5bn (or a decrease of 0.8 percentage points of GDP) on January 2018. Debt at the end of January 2019 excluding Bank of England (mainly quantitative easing) was £1,596.7bn (or 74% of GDP); an increase of £26.9bn (or a decrease of 1.2 percentage points of GDP) on January 2018.
The Chancellor will be giving his spring statement on 13 March.
Public sector finances January 2019 is here.
Report by Pat Sweet
