Public sector net borrowing in the UK, excluding public sector banks, recorded a GBP30.4 billion surplus in January 2026, more than doubling from GBP14.5 billion a year earlier and exceeding expectations of GBP23.8 billion. This marked the largest budget surplus since records began in 1993, as total public sector receipts rose by GBP16.8 billion year-on-year, supported by strong capital gains tax inflows after companies and individuals brought forward asset sales ahead of planned tax increases. January receipts are typically elevated due to self-assessed payments, with combined income and capital gains tax revenues reaching a record high. Meanwhile, public sector expenditure increased by GBP0.9 billion, as higher public service and benefit costs were largely offset by lower interest payments on government debt. For the financial year to January, borrowing totaled GBP112.1 billion, below the OBR’s GBP120.4 billion forecast, though still the fifth-highest April–January borrowing on record.