The UK government enjoyed a record-breaking surplus in January, official figures show, due to a big boost in self-assessment and capital gains tax receipts.

In a boost for chancellor Rachel Reeves ahead of her spring statement next month, public sector finances recorded a surplus of £XX billion at the start of the year, according to the Office for National Statistics.

The figure is the largest January total since records began in 1993 and compares with a forecast of £24bn made by the Office for Budget Responsibility, the government’s official forecaster. It marks a sharp reversal from December when the government posted a deficit of £11.6bn.

The government traditionally records a surplus in January, meaning it earns more in tax revenue than it spends, due to the recording of self-assessment tax receipts in the month. Last year the government posted a £15.4 billion surplus for January.

However, this year has been boosted by a rise in capital gains tax receipts due to an increase in people disposing of assets ahead of what they predicted would be a rise in capital gains tax in the 2024 autumn budget.

In her budget in October 2024, the chancellor announced increases in both the lower rate of CGT, from 10% to 18%, and the higher rate of CGT, from 20% to 24%, with these rate increases taking immediate effect.

There has also been a freeze in income tax thresholds since 2022, meaning more people had been lifted into a higher tax bracket over time due to inflation.

On top of these two factors, there have also been increases in national insurance contributions (NICs) introduced last April and higher wage growth.

Reeves has made reducing government borrowing a priority, with the national debt hitting XX% of gross domestic product in January, a level not seen since the early 1960s. The cost of servicing that debt is high, with £1 in every £10 spent by the government going on debt interest. The ONS said the government spent £XXbn on interest payments in December.