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UK government borrowing falls in January | |
(35 minutes later) | |
Government borrowing fell in January after the UK recorded the largest public finance surplus for any January since 2008. | |
The Office for National Statistics said the January surplus, excluding banks, rose by £1bn to £11.2bn compared with last year. | The Office for National Statistics said the January surplus, excluding banks, rose by £1bn to £11.2bn compared with last year. |
Surpluses are usually recorded in January because of the high level of tax receipts in the month. | Surpluses are usually recorded in January because of the high level of tax receipts in the month. |
Other figures showed retail sales growth rose much faster than expected. | |
Although the monthly borrowing figure was the highest for eight years, it was below the £12.6bn forecast by economists. | |
Government borrowing for the current tax year year, from April 2015 to January, was £66.5bn - £10.6bn lower than at the same point in the previous 12 month period. | Government borrowing for the current tax year year, from April 2015 to January, was £66.5bn - £10.6bn lower than at the same point in the previous 12 month period. |
The Office for Budget Responsibility has forecast that the government will borrow £73.5bn for the financial year to March. | |
Paul Hollingsworth of Capital Economics said: "This still leaves the Chancellor with some work to do over the next few months if he still wants to meet this forecast. After all, he is left with around £7bn left to borrow in February and March - last year he borrowed almost £15bn." | |
This month's figures include housing associations for the first time because they were now considered to be under public sector control. | |
The change has increased borrowing for the financial year from April 2014 to March 2015 by £3.6bn. | |
Clearance | |
The ONS said retail sales volumes jumped 2.3% in January compared with December when they fell by 1.4%, leaving them 5.2% higher for the year. | The ONS said retail sales volumes jumped 2.3% in January compared with December when they fell by 1.4%, leaving them 5.2% higher for the year. |
The main contributor to the growth came from non-food retailers, with department stores faring particularly well - perhaps reflecting post-Christmas clearance sales, according to Mr Hollingsworth. | |
Keith Richardson, managing director retail sector at Lloyds Bank Commercial Banking, said a cold snap last month prompted shoppers to look for winter coats, jumpers and footwear, while bargain-hunters were out in force in the post-Christmas sales. | |
"Online sales continued to soar, rising 10% year-on-year even as footfall rose, suggesting that those with sophisticated online and mobile operations are now attracting new customers from overseas," he said. | "Online sales continued to soar, rising 10% year-on-year even as footfall rose, suggesting that those with sophisticated online and mobile operations are now attracting new customers from overseas," he said. |