Money (12)The UK has recorded its largest public sector finances surplus for a January since 2008, according to the Office for National Statistics (ONS).

The ONS said the surplus rose £1 billion from January 2015 to £11.2bn, but analysts have said it fell below forecasts of £12.65bn.

January is typically a common month for the UK to report a surplus, given the higher tax receipts from self-assessment returns.

The latest figures means the government has now borrowed £66.5bn in the financial year so far, since April 2015, £10.5bn less than at the same point in the last financial year. According to the Office for Budget Responsibility, the government is expected to borrow £73.5bn in the full financial year - meaning George Osborne can borrow no more than £7bn in February in March in order to meet his deficit reduction targets.