A strong increase in tax revenue helped the Exchequer record a sharp increase in its surplus in the 12 months to the end of May. Tax receipts jumped 15.7 per cent as the surplus hit almost £1.69 billion, (€2.1 billion) compared with close to £616 million at the same point last year.

After only five months, the surplus now exceeds the figure set down by the Government for the whole year in its budgetary figures. That surplus forecast of £1.6 billion has already been revised upwards once, at the end of March, to £2.1 billion. It is almost certain to be revised upwards again at the end of June.

Dr Dan McLaughlin, chief economist at ABN Amro, said the figures reflected a continuing strength in employment growth.

"The figures are telling us that consumer spending is still strong, which we knew, but also that employment is growing more strongly than even the most optimistic forecasts," he said.

A more complete picture will emerge with the publication of the Quarterly National Household Survey next week.