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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/02/surplus-expected-in-borrowing-data.jpg"><img class="alignnone size-full" title="Borrowing figures for January are expected to show a small surplus of 100 million pounds" src="http://londonglossy.com/wp-content/uploads/2011/02/min-surplus-expected-in-borrowing-data.jpg" alt="Borrowing figures for January are expected to show a small surplus of 100 million pounds"/></a></p>
<p>Borrowing figures today are expected to show a brief respite for Britain&#8217;s creaking public finances in January after a traditionally bumper month for taxes.</p>
<p>Economists are pencilling in a small surplus of £100 million last month in figures excluding financial interventions, compared with a shortfall of £977 million in January last year as taxes brought in by the Government exceeded spending.</p>
<p>January is usually favourable for public finances as it is a big month for tax receipts, but will also have been helped by the rise in VAT to 20%, according to experts.</p>
<p>In December, total public borrowing for the year to date plunged a further £16.8 billion into the red to £118.4 billion, according to the Office for National Statistics (ONS).</p>
<p>The figures may ease fears that borrowing is in danger of overshooting forecasts set by the tax and spending watchdog, the Office for Budget Responsibility (OBR). The Government&#8217;s target, based on the OBR forecast, is £149 billion for the financial year to the end of March.</p>
<p>Howard Archer, chief UK and European economist at IHS Global Insight, has forecast an above-consensus surplus of £1.5 billion.</p>
<p>He said: &#8220;The economy&#8217;s markedly improved economic performance should have significantly lifted tax receipts. The higher VAT rate will also lift tax receipts.&#8221;</p>
<p>He added: &#8220;The public finances show modest overall improvement so far during fiscal year 2010/11 and the Government is currently on course to meet its public finance targets for the year, although much will clearly depend on how well growth bounces back in the first quarter of 2011 after the shock GDP contraction in the fourth quarter of 2010.&#8221;</p>
<p>Jeremy Batstone-Carr, analyst at Charles Stanley Research, has forecast the public deficit to be around £4 billion lower than the OBR forecast for the financial year.</p>
<p>He said: &#8220;The UK&#8217;s fiscal position is improving faster than previously expected, supported by a sharp rise in revenue collection.&#8221;</p>
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