UK public sector borrowing lower than forecast UK public sector borrowing came in at £138.5bn for the financial year to January, about half that posted in the same period the previous year and £17.7bn less than that forecast by the Office for Budget Responsibility in October. However, it was still the second-highest total since records began in 1993. Treasury receipts came in £29.1bn above forecast, which the OBR said reflected “strong performance across taxes, led by income tax, corporation tax and value added tax”. However, interest payments on debt rose from £1.6bn a year ago to £6.1bn in January due to surging inflation, eating into the Chancellor’s first ever budget surplus. Figures from the Office for National Statistics show Government income exceeded spending by £2.9bn last month, smaller than the £3.5bn forecast by the OBR due to those interest payments. Debt interest payments in 2022-23 are set to be £25bn more than the OBR previously expected following the spike in inflation, according to Samuel Tombs, chief UK economist at Pantheon Macro