UK government in tax surplus for January
21 February 2023
With the budget growing closer each day, the economic outlook of the UK has seemed worrying to say the least. However, a glimpse of light has been given that could alleviate some doubts and set us up for a less than bleak budget.
In January, the UK government spent less than it received in taxes, a surplus of £5.4 billion. This does usually happen every January as self-assessment receipts are received, this year a record number of returns were received providing us with this addition tax revenue.
The exception here was 2021, when coronavirus support spending was still relatively high. However, the government is still spending heavily on the energy support schemes keeping household bills down. To put it into perspective, the ONS stated the surplus is £7.1 billion less than the same period in 2022 but £5 billion bigger than forecast.
The additional self-assessment receipts were partly offset by a large one-off payment to the EU for historic customs duties.
While this may not be an almighty turning point for the country, it may help soften the blow and allow for some softer measures in the upcoming budget. Only time will tell, but keep an eye out for all our budget updates.
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