UK swings to record budget surplus in January and retail sales surge
Financial Times
February 20, 2026
AI-Generated Deep Dive Summary
The UK recorded a significant surplus in its budget in January, marking a notable milestone as the country swung to a record surplus. This improvement in public finances was driven by higher self-assessed income tax and capital gains tax receipts, reflecting stronger economic activity and tax compliance. Additionally, retail sales saw a sharp increase during the month, signaling a rebound in consumer confidence and spending. These developments underscore a potential recovery in the UK economy, with both public and private sectors showing signs of growth.
The surge in budget surplus was partly attributed to higher
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Originally published on Financial Times on 2/20/2026