UK posts record budget surplus
Business
Big news for the UK's finances: January 2026 saw a budget surplus of £30.4 billion—the highest since records began in 1993, says the Office for National Statistics.
This jump (up £15.9 billion from last year) happened thanks to more tax money coming in and cheaper borrowing as interest rates fell, even though government spending stayed about the same.
Retail sales grew by 1.8% in January
It wasn't just the government doing well—UK retail sales grew by 1.8% in January, beating expectations.
Since shopping makes up a huge part of what drives the UK economy, this combo of record surplus and rising sales reflects stronger public finances and household consumption as 2026 kicks off.