UK's budget squeeze turned to surplus of 7.8 billion pounds in January, beating forecasts of 6.3 billion pounds surplus, from December's reading which was revised to 14.0 billion pounds deficit from the initial 13.7 billion pounds deficit, according to the public sector reading excluding interventions.

Public sector net borrowing with support to banks also recorded a surplus of 10.7 billion pounds compared with a revised deficit of 11.1 billion pounds, which was 10.8 billion pounds deficit initially, exceeding estimates of 9.1 billion pounds surplus.

Public-sector net cash requirement showed a surplus of 16.8 billion pounds compared with the prior deficit of 22.9 billion pounds which was revised to 22.8 billion pounds deficit, while analysts' projections referred to a surplus of 24.7 billion pounds.