UK reports record-breaking budget surplus of £30.4bn in surprise boost for Rachel Reeves
The UK government has posted the biggest ever budget surplus, official figures show, after a large increase in self-assessment and capital gains tax receipts.In a boost for the chancellor, Rachel Reeves, in the run-up to her spring statement next month, public sector finances recorded a surplus of £30.4bn in January, according to the Office for National Statistics.This was double the surplus recorded in January 2025.The figure is the largest monthly total since records began in 1993 and much higher than the forecast of £24bn made by the Office for Budget Responsibility (OBR), the government’s official forecaster, and a poll of City economists.
Paul Dales, the chief UK economist at Capital Economics, said: “The economy started the year looking a lot healthier and will give the chancellor something positive to point to in her fiscal statement on 3 March.”The figure marks a sharp reversal from December, when public sector net borrowing – the difference between spending and income – was £11.6bn.Grant Fitzner, the chief economist at the ONS, said: “January – which is traditionally a strong month for self-assessed tax receipts – saw the highest surplus since monthly records began.“Revenue was strongly up on the same time last year, while spending was little changed, due to lower debt interest payments largely offsetting higher costs on public services and benefits.
”Alongside the normal uplift to public finances in January from self-assessed tax receipts, this year has been boosted by a rise in capital gains tax receipts because of an increase in people disposing of assets before a widely expected rise in capital gains tax in the 2024 autumn budget,Capital gains tax brought in £17bn last month, almost £7bn more than a year earlier, while self-assessed tax receipts reached a total of £29,4bn,There has also been a freeze in income tax thresholds since 2022, meaning more people have been lifted into a higher tax bracket over time because of inflation,The surplus meant that the deficit for the first 10 months of the financial year was £112.
1bn, which is less than the £120.4bn the OBR had forecast, and suggests it is on course to undershoot the official full-year borrowing forecast by about £10bn.However, Henning Diederichs, a public sector senior technical manager at the Institute of Chartered Accountants in England and Wales, said the public finances continue to be in a difficult position before the spring statement despite the record surplus.“The budget overrun remains significant, re-emphasising the weak economic position that is driving the government’s need to borrow,” he said.Martin Beck, the chief economist at WPI Strategy, said that borrowing for the financial year was now expected to reach £130bn, which is “worrisome for an economy that both the OBR and the Bank of England judge to be close to full capacity”.
The surplus follows a mixed set of economic data released over the past two weeks.Official figures showed the economy expanded by a disappointing 0.1% in the final three months of last year, the same rate as the previous three months, because of falling business investment and weak consumer spending.Unemployment rose to a five-year high of 5.2% over the same period, especially among young people.
However, inflation slowed to 3% in January, the lowest level since March and a boost to hopes of a cut in interest rates by spring,Reeves has made reducing government borrowing a priority, with the national debt – of £2,9tn – hitting 92,9% of gross domestic product in January, a level not seen since the early 1960s,However, in a further boost to the Treasury, interest payments on that debt fell in January to £1.
5bn, about £5bn less than January last year.This is because the interest rate on some government debt is pegged to the retail prices index measure of inflation, which has eased compared with a year ago.James Murray, the chief secretary to the Treasury, said: “We have the right plan to build a stronger, more secure economy.We have doubled our headroom, we are bringing inflation down, we are making sure that taxpayers’ money is spent wisely, and borrowing this year is forecast to be the lowest since before the pandemic.”
Aston Martin issues another profit warning and sells F1 naming rights for £50m
Aston Martin has warned that its losses will be worse than expected and sold its permanent naming rights to its Formula One team, as the struggling British carmaker battles to stabilise its finances.The luxury carmaker, majority-owned by the Canadian billionaire Lawrence Stroll, said its earnings for 2025 would be worse than City forecasts, its fifth profit warning since September 2024.Analysts had been expecting the struggling company to post a loss of £184m at its annual results, due to be published next Wednesday.Aston Martin delivered nearly 10% fewer cars last year than in 2024 – 5,448 in total – as US trade tariffs battered sales and the company fell short on lucrative special edition deliveries. Shares fell as much as 4% on Friday morning before recovering some ground, down 2%
Hospitality workers: tell us about the worst or rudest customers you ever dealt with
A diner in a Sydney restaurant has been caught on CCTV sprinkling armpit hair into their food “in attempt to get a free meal”. After confronting the head chef, the man allegedly then left without paying, having ordered the most expensive items on the menu.With this delightful story in mind, do you have a story of dealing with a rude or generally bad customer while working in hospitality?If you’ve worked in a bar or restaurant, you can tell us about your experience below.You can tell us your story using this form. Please include as much detail as possible
Nascent tech, real fear: how AI anxiety is upending career ambitions
Matthew Ramirez started at Western Governors University as a computer science major in 2025, drawn by the promise of a high-paying, flexible career as a programmer. But as headlines mounted about tech layoffs and AI’s potential to replace entry-level coders, he began to question whether that path would actually lead to a job.When the 20-year-old interviewed for a datacenter technician role that June and never heard back, his doubts deepened. In December, Ramirez decided on what he thought was a safer bet: turning away from computer science entirely. He dropped his planned major to instead apply to nursing school
Nvidia reportedly plans to invest $30bn in OpenAI’s next funding round
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US skier Hess describes ‘hardest weeks of my life’ after Trump’s ‘real loser’ comment
At the start of the Winter Olympics, Donald Trump called Hunter Hess a “real loser” after the US freeskier dared to admit that he had mixed feelings about representing his country.As he swooped down the halfpipe on Friday morning, Hess delivered a neat riposte, flashing a L-sign with his hand before insisting his row with Trump was something “I definitely wear with pride”.“Apparently I am a loser,” Hess said when asked about his gesture. “I am leaning into it.”His spectacular run earned him a place in the men’s halfpipe final later in the day
Winter Olympics 2026: Norway break own record for golds won in single Games after biathlon triumph – as it happened
That’ll do from me tonight.As I said, barring a miracle, USA will progress to the final of the men’s ice hockey where they’ll meet Canada who edged Finland 3-2 with seconds to go.🇺🇸 Alex Ferreira claimed gold in the men’s freeski halfpipe with GB’s Gus Kenworthy placing fifth🇰🇷 It was gold and silver for Korea Kim Gil-li who beat her mentor and world record holder Choi Min-jeong in the women’s 1500m speed skate.🇨🇳 Wang Xindi won the men’s aerials, two days after his wife Xu Mengtao became an Olympic champion.🇳🇴 Norway finish first and second in the men’s biathlon 15km mass start, with Johannes Dale-Skjevdal claiming gold
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