The exchequer returns for January show that the strong trend in tax revenues evident last year continued into 1998. Total tax receipts during the month were £1.309 billion, just over 10 per cent above the £1.189 billion recorded in January of last year. While it is too early in the year to draw any firm conclusions, the strong trend in tax receipts suggests that economic growth remains very strong moving into this year and that this was boosting the main income tax and VAT tax receipts headings.

The strong growth in tax receipts meant that the exchequer finances were £112 million in surplus last month. This compares to a deficit of £107 million in the same month last year, according to the figures from the Department of Finance.

The January figures also benefited from a sharp fall in central fund services spending.