A new government after the election is likely to have access to a bounty of rising revenues as the Brexit clouds lift, new forecasts from broker Davy suggest.

Irish business leaders and analysts have hailed the prospects for the UK approving the withdrawal agreement next month but warn that the risk of Brexit disruption may be just delayed for a year.

Finance Minister Paschal Donohoe could tap hundreds of millions from surging tax receipts to fund giveaway measures in his budget next week — but much will still depend on the scale of potential health spending overruns for the rest of the year.

Tax revenues continued to pour into the exchequer last month, easing the pressure on Paschal Donohoe even as a snap UK election and a crash-out Brexit could still undo his October budget plans, analysts said.

Sterling fell against the euro and the dollar as the political machinations in Westminster brought the likelihood of a general election much closer.

Surging economic activity strengthens the hand of Finance Minister Paschal Donohoe in October’s budget — despite the uncertainties of Brexit, a leading economist has said.

Paschal Donohoe has nothing in his way to set “a generous” tax package in a possible pre-election budget in October despite the finance minister receiving a scare over disappointing corporate tax revenues last month, a leading economist has said.

Volatility has returned to the Government’s tax revenues, as Vat and corporation taxes brought in less than anticipated in April, while excise duties brought in much more.

Finance Minister Paschal Donohoe looks set to have ample room for spending rises and tax cuts in his next budget even as the Government cut the growth outlook.

Davy Stockbrokers is the latest forecaster to lower its expectations for Irish economic growth this year.

House prices will continue to climb through 2019 with the latest MyHome.ie property report forecasting a 5% increase.

The exchequer brought in much less in Vat receipts than it anticipated in October, while corporation tax receipts surged as the Government, as it had anticipated, got the first of its huge windfalls made up of advance payments by multinationals.

Exchequer figures, which show spending is growing faster than tax revenues, should give the Government cause for concern, say analysts.

The unveiling, this week, of the EU’s controversial digital turnover tax proposal is “crunch time”, as experts warn about the outsized hit Ireland will take from the levy on the digital giants such as Google, Facebook, and Apple.

Memories of Ireland’s Celtic Tiger experience may not serve us well in addressing upcoming challenges, writes Conall Mac Coille.

No rabbits will be pulled next week from the “budget hat” despite the latest exchequer figures suggesting corporation tax revenues were again picking up steam, analysts said.

The head of the ECB has said youth unemployment across Europe remains far too high despite the marked economic recovery from the depths of the financial crisis.

A restoration of the standard Vat rate to 21%, greater help for retailers to trade online and a tackling of business rate levels have been called for as latest retail sales figures show continued volatility, writes Geoff Percival.

A new picture of the economy shows it is much smaller and the country’s debt burden is much heavier but also suggests that the domestic economy is powering ahead.

A new way of measuring the size of the economy has shown the legacy of debt from the crash is much higher than previously estimated, and will likely hem in government spending for years to come.

House prices have increased by an average of €24,000 in the second quarter of the year, with asking prices in the capital up €32,000 since the start of the year.

House and apartment prices increased by 10.5% to the end of April this year, the biggest rise since two years ago when prices rose by 11.2%, it has emerged.

Public sector wage increases and the jobs boom in construction may be driving an outsized increase in pay and earnings, the latest official figures suggest.

There is “now little doubt” that the Government’s Help-to-Buy scheme has fuelled property price hikes, according to an economist, with latest figures showing the highest rise in prices in two years.

The room available for tax cuts and spending increases in future years appears limited despite the Government raising growth forecasts in its new economic outlook.

The Department of Finance is investigating the reasons for an unexpected drop in revenues it collects from income tax revenues as it issued its exchequer returns for taxes and spending in March.

Irish exporters have been warned about further sharp currency fluctuations, should the EU-UK talks end in no trade deal and tough controls over workers.

The Public Sector Pay Commission has been warned not to “make matters worse” by ignoring external economic factors in its upcoming salary agreement deliberations.

Boosted by domestic spending, the economy is continuing to grow strongly, CSO figures published yesterday suggest, despite the accounting procedures by multinationals distorting an in-depth understanding of what is really going in the Irish economy.

The Government took in €2.74bn in tax revenue in February — €44m ahead of target — despite both corporation and income tax receipts coming up short of expectations.

A keynote Brexit speech by UK Prime Minister Theresa May is anxiously awaited amid expectations she will realise the worst fears of Irish business and Government and confirm that London is intent on striking a hard Brexit deal with Brussels.

The effect on the Irish economy of the decision by the UK to quit the EU has so far not been as dire as some had feared, though huge risks remain, Central Bank officials have said.

Income tax receipts have continued to bring in less than anticipated for the exchequer, while corporate tax revenues have outperformed again, presenting a mixed bag for Finance Minister Michael Noonan ahead of his budget next week.

Irish indigenous firms are “struggling” following the slump in the value of sterling against the euro in the wake of the UK’s vote in June to leave the EU, a leading economist has said.