Rise in UK income tax receipts not enough to keep Osborne plan on track

Modest 4.7% rise in payments misses City forecast by 1.1bn and may thwart chancellor's plan for dramatic cut in public borrowing this year

A modest rise in income tax receipts last month was not enough to salvage George Osborne's plan for a dramatic cut in government borrowing by the end of the financial year.

In the last report on the public finances before next month's budget, the Office for National Statistics said income tax receipts jumped by 4.7% compared with January last year to help produce an 11.2bn surplus in January, which is traditionally a healthy month for tax receipts.