UK reports record-breaking budget surplus of £30.4bn in surprise boost for Rachel Reeves

The Guardian - World NewsEN 3 min read 100% complete by Tom KnowlesFebruary 20, 2026 at 08:28 AM

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The UK government reported a record-breaking budget surplus of £30.4 billion in January, according to the Office for National Statistics. This is the largest January surplus since records began in 1993, exceeding forecasts due to increased self-assessment and capital gains tax receipts. The surplus provides a boost for Chancellor Rachel Reeves ahead of the spring statement. Higher capital gains tax receipts are attributed to individuals disposing of assets before anticipated tax increases, alongside frozen income tax thresholds and increased national insurance contributions. The surplus has reduced the deficit for the first ten months of the year to £112.1 billion, lower than the Office for Budget Responsibility's forecast.

Key Entities & Roles

Key Player Opposition Context

James Murray 30% Treasury 40% Grant Fitzner 50% Office for Budget Responsibility ×260% Office for National Statistics 70% United Kingdom 80% Rachel Reeves ×290%

Keywords

budget surplus 100% tax receipts 80% capital gains tax 70% public sector finances 70% rachel reeves 60% self-assessment 60% office for national statistics 50% uk economy 50% spring statement 40% public sector net borrowing 40%

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The Guardian - World News

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budget surplus tax receipts capital gains tax public sector finances rachel reeves self-assessment office for national statistics uk economy spring statement public sector net borrowing

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