UK finances improve in January as tax revenues grow

Government finances recorded a surplus last month as the economy opened up from lockdowns and tax receipts improved.

The public finances showed a surplus of £2.9bn last month, compared with a £2.5bn deficit in January 2021.

But it was still a £7bn smaller surplus than in January 2020, before the pandemic, official figures showed.

Borrowing from the end of March to December was £138.5bn - the second highest since records began in 1993.

The data from the Office for National Statistics also showed that total public sector debt stood at £2.32 trillion at the end of the month, or around 94.9% of gross domestic product.