The UK government spent less than it received in taxes and other income last month, resulting in a surplus of £5.4bn.
The public sector finances were boosted by the highest ever January figure for self-assessment income tax receipts of £21.9bn.
“January’s high annual self-assessed tax receipts were partly offset by substantial spending on energy support schemes and large one-off payments relating to historic customs duties owed to the EU,” the Office for National Statistics (ONS) said.
The surplus for January 2023 was £7.1bn smaller than in January 2022 but was £5.0bn larger than forecast by the Office for Budget Responsibility (OBR), the government’s official forecaster.
In the financial year to January, public borrowing amounted to £116.9bn. This was £7.0bn more than in the same period last year but £30.6bn less than forecast by the OBR.
Chancellor Jeremy Hunt is under pressure ahead of next month’s budget to increase spending on energy bill support, the NHS and public sector pay deals.
However, Hunt said that with debt at the highest level since the 1960s, “it is vital we stick to our plan to reduce debt over the medium term”.
He added: “Getting debt down will require some tough choices, but it is crucial to reduce the amount spent on debt interest so we can protect our public services.”
