February 21, 2008	Thursday	Safar 13, 1429

LONDON, Feb 20: Britain’s public finances enjoyed a record surplus in January, boosted by soaring tax receipts, figures showed on Wednesday.

Analysts warned, however, that the government’s liabilities stemming from Northern Rock, the crisis-hit bank being nationalised, were not yet included in the data from the Office for National Statistics.

The ONS revealed that Britain’s public sector net borrowing requirement (PSNBR) the government’s preferred measure of the public finances stood at a record surplus of 14.1 billion pounds in January.

January is traditionally a surplus month because quarterly company taxation payments coincide with self-assessment receipts.

The reading compared with a revised surplus of 11.8 billion pounds in January 2007 and beat analyst forecasts for a surplus of 10 billion pounds.

The ONS, which ruled earlier this month that Britain’s public finances data would incorporate Northern Rock, added on Wednesday that it was still calculating the exact impact of the move that was being backdated to October 2007.

Analysts fear that Northern Rock liabilities could force the government to break its own sustainable investment rule which states that debt should not exceed 40 per cent of British gross domestic product (GDP).

The ONS said on Wednesday that the government’s net debt stood at 214 billion pounds in January, which was equivalent to 35.9 per cent of gross domestic product. That compared with 35.5 per cent in January 2007.

Meanwhile, British finance minister Alistair Darling, suffering from political criticism over his handling of the Northern Rock affair, could also face problems meeting his borrowing target for the fiscal year to April 2008.

“Barring a further improvement, borrowing remains on course to overshoot the chancellor’s full-year forecast of 38 billion pounds by one billion or so,” said Vicky Redwood, UK analyst at Capital Economics.

“What’s more, National Statistics has yet to include Northern Rock’s 100 billion pounds or so of debt in the government’s accounts.—AFP