And what do we now have to point out for it? Treasury rakes in £100BILLION in tax in only one month in blitz on households and companies

The Treasury has raked in more than £100billion in tax in a single month for the first time as Rachel Reeves hammers households and businesses to fund the expansion of the bloated state.

Official figures show tax receipts hit £109.7billion in January alone – up £13.3billion on the same month last year and the most ever recorded.

This included a £12.3billion surge in income tax receipts to £70.2billion as increasing numbers of workers are dragged into higher rates due to the freezing of thresholds.

National insurance contributions rose by £2.9billion to £17.7billion after the Chancellor hiked the rate in her first Budget in October 2024.

Critics argued the extra funds are being splurged on inflation-busting rises in public sector pay and the ballooning benefits bill – while doubts persist over Labour’s pledge to raise defence spending.

The ONS noted that departmental spending on goods and services rose by £2.3billion to £39.5billion ‘as pay rises and inflation increased running costs’.

The tax burden is heading for a record high under Keir Starmer and Rachel Reeves

Shadow Chancellor Sir Mel Stride said: ‘What do we have to show for all this spending? A spiralling benefits bill, public sector wages rising much faster than the private sector, wasteful net zero projects, and taxes going up on working people to pay for it all.

‘Record high taxes and irresponsible spending have weakened the economy. With youth unemployment now higher than in Europe, inflation above target and the economy stagnant, Wes Streeting is right: Labour have no growth strategy.’

The tax take is typically higher in January because of receipts from self-assessment tax returns, which must be completed and paid by the end of the month.

There was also a surge in capital gains tax revenues, which rose by £7billion to £17billion, following hikes in Ms Reeves’ October 2024 Budget.

Shadow business secretary Andrew Griffith said: ‘There’s nothing good about the Treasury gorging itself on record taxes from businesses and families. You can kill the golden goose and enjoy a momentary feast, but poverty soon follows.’

Reform UK Treasury spokesman Robert Jenrick said: ‘The Treasury is reporting record tax receipts and yet what have we to show for it? Soaring youth unemployment, a benefits bill time bomb which is on course to bankrupt the country and still no coherent plan to increase defence spending.’

The increase in tax receipts, and a £5billion fall in the debt interest bill to £1.5billion, resulted in a surplus of £30.4billion last month.

That was the biggest surplus on record and £15.9billion bigger than the one recorded in January 2025.

ONS chief economist Grant Fitzner said: ‘January – which is traditionally a strong month for self-assessed tax receipts – saw the highest surplus since monthly records began.

‘Revenue was strongly up on the same time last year, while spending was little changed, due to lower debt interest payments largely offsetting higher costs on public services and benefits.’

Borrowing in the financial year to January was £112.1billion – some £14.6billion or 11.5 per cent less than in the same ten-month period a year ago.

But the ONS said this was still the fifth-highest April to January borrowing on record.

ONS figures show the surplus almost doubled to £30.4billion in January

The Chancellor is set to push the overall tax burden to an all-time high by the end of the decade having announced £75billion of hikes since taking office – more than any Chancellor in at least six decades.

Ms Reeves is due to deliver her Spring Statement on March 3, with firms warning it is the Chancellor’s ‘last chance’ to act before they are hammered by new costs in April.

The Federation of Small Businesses has claimed their members are facing ‘unparalleled cost pressures’ due to rising energy bills, business rates hikes, increases in minimum wage rates, and changes to sick pay.

While the government now looks set to borrow less than the £138.3billion forecast by the Office for Budget Responsibility this year, the deficit remains worryingly large.

Paul Dales, chief UK economist at Capital Economics, said the ‘big picture is that borrowing has failed to come down much this year’.

He pointed out that just two years ago the OBR expected a deficit of £78billion this year.

And he said yesterday’s figures were ‘flattered’ by the surge in capital gains taxes as people sold of assets before new higher rates came in.

‘This is not a sustainable improvement,’ said Mr Dales.

‘Overall, it’s clear that the economy has strengthened since the end of last year.

‘But the lingering drag from last year’s hikes in taxes for business will probably prevent it from growing by much more than 1pc this year.

‘The economy is therefore unlikely to significantly ease the political pressure on the Chancellor and the PM.’

James Murray, Labour’s Chief Secretary to the Treasury, said: ‘We have the right plan to build a stronger, more secure economy.

‘We have doubled our headroom, we are bringing inflation down, we are making sure that taxpayers’ money is spent wisely, and borrowing this year is forecast to be the lowest since before the pandemic.’