A surprise surge in corporation and income tax receipts put government finances in the black by a record £14.1 billion last month, offering much-needed respite to Alistair Darling.

The jump, higher than predicted, means that the Chancellor is back on course to achieve his full-year projection for borrowing.

Yesterday’s public finance figures, the last before Mr Darling unveils his first Budget on March 12, revealed a cut in net borrowing over the first ten months of the financial year to £26.5 billion.

That is still £6 billion higher than in the same period last year, but it means that the £38 billion full-year borrowing forecast, which was raised in October’s PreBudget Report from £35 billion, is no longer in serious jeopardy. Economists said that the figures should spare Mr Darling, who is smarting from the fall-out over the Northern Rock debacle and retreats on “nondom” and capital gains tax, from the embarrassment of having to raise this year’s borrowing totals. However, analysts sounded warnings that Mr Darling faced a bleak outlook for public finances in the following years.

Income tax receipts leapt by 15 per cent compared with the same month last year, while corporation tax receipts soared by 22 per cent. In the first ten months of 2007-08, income and capital gains tax revenues rose by 8.4 per cent year-on-year. The Treasury forecast was for a 7 per cent full-year rise. Company tax payments rose by 3.9 per cent against Treasury hopes for a 4.5 per cent full-year advance.

Explore Money

• Property & Mortgages

• Savings

• Borrowing

• Investment

• Funds

• Insurance

• Consumer Affairs

• Tax

• Pensions

• Broadband