This reduced public sector net borrowing with a higher than expected surplus of £5.4bn in January, against a predicted surplus of £500,000.

Meanwhile, the overall tax take for the month reached its highest level of £106.5bn, 19% up on the same month last year.

Income tax receipts were up 33% on the same month last year, highlighting the impact of frozen tax thresholds as more people are dragged into higher tax bands. This will only get worse as rates are frozen until 2028 and the threshold for the top rate of tax is being reduced to £125,140 from 6 April.

Receipts from self assessment income tax and NICs for April 2022 to January 2023 were £55.9bn, which was £8.9bn higher than in the same period a year earlier.