Public finances in the U.K. recorded an uncommon surplus in the first month of the year as tax receipts outpaced forecasts, although the borrowing remains largely on track for the government’s target, according to Financial Times. On Tuesday, the government reported that tax receipts exceeded spending by £3.7 billion in Janaury, which is the largest surplus since July 2008 and beating the £1.3 billion surplus recorded the year before. So far this year, tax receipts are up 8.4% while current spending is 6% higher.
The Office of Budget Responsibility has predicted that net public borrowing would reach £148 billion in the 2010/2011 financial year and the current level is £113 billion so far, which is £14 billion less than the same time last year. The Treasury said that borrowing is £8 billion ahead of expectations. The report is “reassurance” to Vicky Redwood of Capital Economics that “fiscal consolidation may have got off to a good start.” However, Redwood added, “The government will struggle to meet its fiscal targets next year.”