The UK government saw a surprise surplus in its finances in January despite “substantial spending” to help with energy bills and EU payments.

The highest self-assessed income tax receipts since records began in 1999 boosted the UK’s coffers.

It meant it spent less than it received in tax, leaving a £5.4bn surplus.

Economists said the figures showed a “mixed picture” with public finances still weaker than this time last year ahead of next month’s Budget.

Chancellor Jeremy Hunt will set out his plans for tax and spending on 15 March.

Every January, the government tends to take more in tax than it spends in other months due to the amount it receives in self-assessed taxes, according to the Office for National Statistics (ONS).

But most economists had expected borrowing to rise this time, in part due to the large amount the government is spending on supporting households with their energy bills.

It is limiting the average household energy bill to £2,500 – although it says this will increase to £3,000 from April due to the high cost of the support.

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