Britain Reports First Budget Surplus, Nearly 18 Billion Pound Since Covid-19 Pandemic Began

Source: Office for National Statistics.

The UK posted its first fiscal surplus since the start of the pandemic, setting Chancellor of the Exchequer Rishi Sunak on progress for nearly 18 billion-pound budget income. FTSE 100 up +0.30%, GBP USD down -0.20%

• The government generated additional 2.9 billion pounds in tax than it spent in January. The figures signal the recovery from the pandemic. The economy is on pace to return to its pre-pandemic size in the upcoming quarter.
• Britain usually registers surpluses in January and July, the largest tax months of the year, but the destruction caused by Covid-19 meant such surpluses were only recorded in January 2020 before the pandemic started.
• The surplus last month was significantly smaller than the 9.9 billion pounds reported two years earlier.
• Borrowing in the first 10 months of the current fiscal year dropped to 138.5 billion pounds compared to the forecast 156.3 billion by the Office for Budget Responsibility.