£9.4bn pre-Budget cash boost

BRITAIN’S Brexit boom has seen the Government record its highest January financial surplus for 17 years, figures have revealed.

In the latest sign that the vote to leave the EU is strengthening the economy, Chancellor Philip Hammond received a £9.4billion cash boost ahead of his Spring Budget.

The surplus – the amount of tax left over after Government spending – is up £300million from January 2016. The boost to public finances came on a day when the FTSE 250 – seen as the main measure of the health of the economy – was up 17 points, while the value of the pound climbed against the euro and Japanese yen.

Government borrowing, excluding state-owned banks, for the financial year to date – April to January – fell £13.6billion to £49.3billion, in contrast to the same 10 months in 2015.

The Office for National Statistics (ONS) said it was the lowest year-to-date borrowing amount since January 2008. January is always a good month for the Chancellor as deadlines to pay both corporation and income tax fall at the end of the month.

A spokesman for the Treasury said: “We remain committed to returning the public finances to balance and building on our progress in reducing the deficit from 10 per cent to 4 per cent of GDP over the last six years.”