The government tends to take more in tax than it spends in January compared with other times of the year due to the amount it receives in self-assessed taxes in the month.
Despite last month’s £15.4bn being a record figure for a surplus, it undershot forecasts due to lower-than-expected tax receipts, suggesting weakness in the UK economy.
The Office for National Statistics (ONS) said borrowing in the financial year to January 2025 was £118.2bn, some £11.6bn more than at the same point in the last year.
Spending on public services, benefits and debt interest were all higher than last year, the ONS added.
Liz Martins, senior UK economist at HSBC, told the BBC’s Today Programme the higher borrowing was a “little bit worrying”, adding “if we’re off track now the OBR might judge that that’s going to persist”.
She added if the watchdog thought borrowing would remain elevated “then the government might need to make further changes” on its spending and taxation policies.
Separate figures from the ONS showed retail sales in the UK rebounded in January, largely due to strong food sales.
But clothing shops and household goods reported “lacklustre sales due to weak consumer confidence”, according to ONS senior statistician Hannah Finselbach.
She said sales in shops had fallen over the past three months, and were below pre-Covid levels.
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