Surprise January surplus shows Jeremy Hunt has Budget wiggle room

Will he listen to his party and indulge in tax cuts or a country that wants strikes settled and better public services? The Tories might be better served by the latter with an election looming but they refuse to see it, writes James Moore

Which way will he turn? Chancellor Jeremy Hunt has some big decisions to make (PA)

This year could scarcely have got off to a better start for the public finances; January turned in a surplus of £5.4bn. The first month is traditionally a good one for the Exchequer because it is when the deadline falls for submitting and paying self-assessment tax returns, but there weren’t many expecting it to be this good.

The Office for National Statistics said the 2023 tax season produced record receipts, even after a one-off payment of historic customs duties owned to the EU. A Reuters poll of economists had predicted a £7.9bn deficit; that delivers a theoretical £13.3bn swing in the Treasury’s favour.

So are gleeful Treasury officials humming We’re in the Money? No, and not just because of how bad that made former Sainsbury’s boss Mike Coupe look when he was caught on camera doing so before a TV interview.