UK reports first budget surplus in Covid crisis despite rising inflation

Government faces record monthly interest costs of 6.1bn on national debt pile of 2.3tn

The UK government has recorded the first monthly budget surplus since the start of the coronavirus pandemic, despite a weaker than expected January performance as rising inflation pushed up debt interest costs.

The Office for National Statistics said public sector net borrowing was in surplus of 2.9bn last month - the first month in which income outstripped expenditure since January 2020.