UK government hits $6.51mln budget surplus in January

United Kingdom government has recorded about £5.4 billion (($6.51 billion) surplus in January, recording the highest amount for the month since records started in 1997, the Office for National Statistics (ONS) reported on Tuesday.

The surplus reflecting a strong income tax receipts that could give finance minister Jeremy Hunt a little more leeway than he thought as he prepares his annual budget, the report added.

“This suggests that the Chancellor will have some wiggle-room in the budget to fund near-term tax cuts and/or spending rises,” said Ruth Gregory, deputy chief UK economist at consultancy Capital Economics.

The recent increase in debt repayments was largely due to inflation in the country, said the Office for National Statistics.

The released public sector finance figures come in line with the government delivering its budget during the upcoming month.

Every January, the government tends to take more in tax than it spends in other months due to the amount it receives in self-assessed taxes, according to ONS.

($1 = 0.8317 pounds)