The U.K. government enjoyed its biggest surplus in four years in January, making it increasingly likely that Chancellor of the Exchequer George Osborne will undershoot his borrowing target for the year.
Public sector net borrowing was negative in January--meaning a surplus--to the tune of GBP7.8 billion, the Office for National Statistics said Tuesday.
That is the biggest surplus since January 2008, thanks to annual growth in receipts outstripping a rise in government spending.
For the financial year to date, borrowing was GBP93.5 billion. That is down GBP15.7 billion on the comparable period last year.
With only two months left in the financial year, the figure is significantly below the government's GBP127 billion full-year forecast.
Undercutting the borrowing target would give Osborne ammunition to argue that his program of spending cuts to pare back the national debt is working.
Osborne has come under pressure to ease back on the austerity program to boost growth as the economy has weakened. The Chancellor will reveal new plans to support growth in his Budget statement in late March.
Economists were expecting a public sector net surplus of GBP6.4 billion, according to a Dow Jones Newswires survey last week.
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