UK public sector posts unexpected budget surplus in January

CEO of RIFT Tax Refunds, Bradley Post, commented:

“A record level of self assessment tax receipts has helped contribute to the surprise surplus in public finances seen in January and this additional five billion pounds certainly suggests that the nation is in far better form than was widely anticipated.

Government spending on subsidies, which includes energy support to tackle the cost of living crisis, also came in far lower than expected, with households consuming less gas due to milder temperatures.

Positive news on the face of it, but many continue to struggle with the higher cost of living and so it will be interesting to see where the benefit of this surplus goes come next month’s budget.

Will Jeremy Hunt look to further tackle the cost of living crisis? Or will he throw a bone to the public sector in an attempt to prevent further strike action?”