Interest on government debt hits record for January

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The UK government recorded a surprise surplus in its finances in January despite “substantial spending” to help households with energy bills and one-off payments to the EU.

The government spent less than it received in tax in the month, resulting in a surplus of £5.4bn.

Economists had forecast borrowing of £7.9bn, but record self-assessed income tax receipts led to the surplus.

The figures come as the government is set to deliver its Budget next month.

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