Britain is now running a current budget surplus as tax revenues cover all day to day spending, for the first full year since 2001.

This surplus, which excludes capital investment by the Government, came in at £3.8bn for 2017, the Office for National Statistics said.

George Osborne set this as a target in 2010 and hoped to achieve it two years earlier in 2015.

More good news is expected later this month as the Office for Budget Responsibility is set to upgrade its growth forecasts, giving the Chancellor a windfall of extra tax revenues.

Research published by the International Monetary Fund said Britain set an example for other countries to follow in slashing the deficit by cutting public spending, rather than raising taxes.