The Treasury is in a £5.4bn surplus after receiving more in tax receipts than it spent in January.

Income tax receipts rose by 33% to £21.9 billion in January - the highest monthly tax take since records began in 1999.

Meanwhile, the overall tax take also soared to £106.5bn - 19% more than income tax receipts in the same month last year.

January's surprise spike in income tax receipts can be partially attributed to the Government's recent tax threshold freezes. The income tax thresholds freeze (until 2028) will push more people into higher tax brackets as wages rise with inflation.

Furthermore, the additional rate of income tax will fall from £150,000 to £125,140 in April, dragging an estimated 250,000 taxpayers into the 45p rate.

Despite the record tax receipts, a spokesperson for Prime Minister Rishi Sunak warned not to place "too much emphasis" on a single month's data.

Chancellor Jeremy Hunt said debt was still at the highest level since the 1960s:

"It is vital we stick to our plan to reduce debt over the medium term. Getting debt down will require some tough choices, but it is crucial to reduce the amount spent on debt interest so we can protect our public services."

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