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Public sector finances UK: January 2024

ended 21. February 2024

The latest public sector borrowing data is out and it shows that borrowing came in lower than the OBR expected, at £96.6bn, and that January was the largest surplus since records began. Key points below. Any thoughts on what this could mean for the Spring Budget, send them across ASAP as this story is BREAKING. Full report >> here <<. 

  • Public sector net borrowing excluding public sector banks (borrowing) in January 2024 was in surplus by £16.7 billion, more than double the surplus of January 2023 and the largest surplus since monthly records began in 1993 in nominal terms.
  • Each January tax receipts are always higher than in other months, owing to receipts from self-assessed taxes; combined self-assessed income and capital gains tax receipts were £33.0 billion, £1.8 billion less than a year earlier.
  • Borrowing in the financial year-to-January 2024 was £96.6 billion, £3.1 billion less than in the same ten-month period a year ago; this is the first time in the present financial year that year-to-date borrowing has been lower than in the equivalent period in the last financial year, partly because central government receipts have been revised.
  • Public sector net debt excluding public sector banks (debt) was £2,646.5 billion at the end of January 2024 and was provisionally estimated at around 96.5% of the UK's annual gross domestic product (GDP); this is 1.8 percentage points higher than in January 2023 and remains at levels last seen in the early 1960s.

4 responses from the Newspage community

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Editor
Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
Public sector debt continues to grow despite less borrowing recently, due to the increased cost in interest. The fact that tax receipts are down despite raising taxes is an indication of the squeezing of profits and incomes of individuals and businesses across the UK economic landscape.
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Editor
Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
A 5.17% drop in self-assessment tax receipts year on year is a significant shift. This likely down to many businesses struggling and subsequent closures during 2022-23, or businesses making less money as they absorb the brutal cost increases during the same period.
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Akhil Mair0
Director at Our Mortgage Broker
Finally some positive news to see the public sector net borrowing in January 2024 reaching a surplus of £16.7 billion, which is more than double the surplus of January 2023. The fact that this surplus is the largest since records began in 1993 is a testament to effective financial management. Although there was a slight decrease in self-assessed income and capital gains tax receipts compared to the previous year, the overall trend of decreasing borrowing in the financial year-to-January 2024 is encouraging. It's especially noteworthy that this marks the first time in the present financial year that year-to-date borrowing has been lower than in the equivalent period in the last financial year. Despite the increase in public sector net debt compared to January 2023, it's reassuring to know that it remains at levels last seen in the early 1960s. This positive trajectory reflects prudent fiscal policies and sets a solid foundation for economic stability and growth.
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Gary Bush0
Financial Adviser at MortgageShop.com
To see in what usually is supposed to be an uptick month for taxes, January, a drop demonstrates the sickness in UK finances. £1.8 billion down on a months return is never going to be good news further downstream. The UK needs some serious thinking going on to push us through, sadly the government is spending too much time squabbling and dividing as they lead up to General Election.