Overview

• The UK government recorded a £16.7 billion surplus in January, the largest monthly surplus since records began in 1993.
• The surplus, fueled by high tax receipts and lower spending, offers Chancellor Jeremy Hunt room to consider tax cuts in the upcoming March budget.
• Despite the surplus, overall UK debt remains high at approximately 96.5% of GDP, a level not seen since the early 1960s.
• Economists caution against large, unfunded tax cuts, suggesting they could prioritize election gains over fiscal prudence.
• The final public finance figures before the March budget show the economy may be 'turning a corner,' with inflation dropping from over 11% to 4%.