UK DATA: Jan PSNB ex financial interven. -Stg3.735bn; median Stg0.3bn
–Jan PSNB -Stg5.252bn vs -Stg0.095bn in Jan 10; median -Stg0.4bn
–Jan Current Budget Stg8.472bn vs Stg4.139bn in Jan 2010
–Jan PSNCR -Stg14.36bn vs -Stg6.183bn in Jan 09; median -Stg8.5bn
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Public Sector Net Borrowing (ex fin. interventions) posted a larger
than expected surplus in Jan as receipts growth rose 12.4% y/y, the
strongest annual rate since April 2010. Income tax and capital gains tax
receipts were up 18.9% y/y the highest since Jan 2005. The current
budget posted an Stg8.4bn surplus, the 9th highest surplus on record,
but well below the Stg17bn posted in Jan 2008. Overall these figures
will make happy reading at the Treasury who must have been concerned
that tax revenues would remain sluggish. This, though, is a good start
to the calendar year with receipts growth outripping spending growth
which was just 4.4% y/y.