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Topics News & Markets

UK records bigger than expected surplus in January, on track to beat full-year forecast

By The Associated Press | February 21, 2012

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LONDON - Official figures show that the British government posted a bigger than expected surplus in January, keeping it on track to beat its full-year target for deficit reduction.

The Office for National Statistics said revenue exceeded borrowing by 7.8 billion pounds ($12.4 billion), the biggest monthly surplus in four years. That was better than the market consensus of 6.3 billion pounds.

Chris Williamson, chief economist at financial data company Markit, says the government is on track to hold full-year borrowing below the 127 billion pounds forecast by the independent Office for Budget Responsibility.

Williamson says this could give Treasury chief George Osborne some leeway to announce modest economic stimulus measures next month in the 2012 budget.

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