In January, the government placed a smaller than expected surplus of £ 15.4 billion, short of the predictions of economists of £ 21 billion and the £ 19 billion projected by the office for budget responsibility (OBR).
The data from January is traditionally encouraged by tax payments from self -evaluation; However, the deficit means that the total borrowing so far has risen to £ 118.2 billion – more than £ 11 billion higher than last year. Analysts say that the figure raises questions about the fiscal headroom of the Chancellor in the run -up to next month’s spring statement.
With the debt-to-BP ratio at 95.3 percent-one level that was last seen in the 1960s cans the upcoming predictions of the OBR on 26 March reduce the possibility of the government to the target to the debt ratio against 2029. Chancellor to consider considering cuts or tax increases in the autumn budget.
Last month’s surplus was reinforced by lower costs for debts, a decrease of £ 9 billion in December to £ 6.5 billion. However, the impact was compensated by a one -off payment of £ 6 billion for the repurchase of the government of military homes of private company Annington.
Darren Jones, principal secretary of the treasury, said that ministers are committed to “economic stability and complying with our non-negotiable tax rules”, adding that the government first started a line-by-line spending review for the first time in 17 years To ensure every cent is spent in accordance with national priorities.