UK public sector surplus up in January

The UK witnessed its biggest surplus in public sector finances for four years last month.

Figures from the Office for National Statistics show that the UK's coffers swelled by £7.8 billion in January, as it took more money from tax receipts than it paid out.

With public debts closing in on the £1 trillion mark, the boost comes at a good time for chancellor George Osborne.

Earlier this week, Moody's warned that the UK could lose its highly coveted AAA credit rating within the next year-and-a-half if the economy does not improve.

The rating agency placed the country on "negative outlook", meaning there is a 30 per cent chance of a downgrade within the next 18 months.

So far this financial year (April to January), borrowing has totaled £93.5 billion, which is less than the £109.1 billion reported in the same period last year.

The government's target is to borrow no more than £127 billion this year, down from £136 billion in 2011.

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