(ONS) The UK recorded a budget surplus of 2.9 billion pounds in January 2022, the first time the government has raised more in taxes than it has spent since the start of the pandemic.
The budget surplus implies 5.4 billion pounds less borrowing by the UK compared to January 2021. The surplus is still 7.0 billion pounds smaller than the pre-pandemic period.
The budget surplus in the first month of the year reflects continued recoveries of the UK economy from the pandemic. The UK economy is now projected to return to the pre-pandemic level in the next quarter.
In the current fiscal year, UK borrowing in the first 10 months was 138.5 billion pounds, which is below the 156.3 billion pounds projected in October.
UK’s borrowing in FYE 2021 represented about 15.0% of the country’s GDP, the highest ratio since the end of the second World War. The borrowing was more than double the previous record during the economic downturn in FYE 2010.
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