UK government borrowing in the first 10 months of its current financial year to January 2026 was £112.1 billion — about £14.6 billion or 11.5% less than in the same 10-month period a year ago, but still the fifth-highest April to January borrowing on record.

That’s according to the latest figures from the UK’s Office for National Statistics (ONS), which said public sector net debt excluding public sector banks (PSND ex) was £2.867 trillion at the end of January.

PSND ex at the end of December 2025 was £2.923 trillion.

However, for the month of January, 2026, the ONS said initial estimates show that the UK public sector recorded a £30.4 billion surplus, £15.9 billion higher than, or double that of January 2025, and £6.3 billion above the Office for Budget Responsibility’s November 2025 forecast — the highest surplus in any month since records began in 1993 (not adjusted for inflation).

“In January, tax receipts are always higher than in other months, because of receipts from self-assessed taxes; combined self-assessed Income and Capital Gains Tax receipts were provisionally estimated at £46.4 billion in January 2026, £10.5 billion more than January 2025,” said the ONS.

Henning Diederichs, Public Sector Senior Technical Manager at The Institute of Chartered Accountants in England and Wales (ICAEW), said: “Despite self-assessment receipts in January contributing to a sizeable surplus for the month, today’s numbers confirm that the public finances continue to be in a difficult position ahead of the Spring Forecast.

“The positive news is that year-to-date borrowing to fund the deficit is lower than expected and on track to beat the OBR autumn forecast of £138bn for the financial year, based on the government being able to keep spending under control in the final two months of the financial year.

“Nevertheless, the budget overrun remains significant, reemphasising the weak economic position that is driving the government’s need to borrow.

“The focus for the Chancellor will be on how to stick to her planned reduction in the deficit in the upcoming financial year from April given the significant pressure she is under to find more money for a range of demands, while at the same time avoiding further tax rises and delivering the conditions for businesses to deliver growth.”