Britain showed a bigger than expected seasonal surplus on its January public sector net borrowing measure, after unusually strong annual growth in income tax receipts, official data showed today.

The figures appear to put the government well on track to meet its full-year fiscal targets, although the Office for National Statistics said the strong January tax receipts might lead to a bigger-than-normal fall back in revenue in February.

Public sector net borrowing including financial sector interventions showed a January surplus of £5.252 billion, up from a surplus of just £95 million a year ago and much better than economists' forecasts of an improvement to £700 million.

January is typically a surplus month for the public accounts, as annual income tax bills become payable in that month.

The government's preferred measure of public sector borrowing excluding financial sector interventions showed a surplus of £3.735 billion, up from a deficit of £1.266 billion a year ago.

Reuters