Hoteliers have defended the €626m-a-year cost to the exchequer of retaining the low, 9% Vat level for hospitality, saying the buoyancy in tax revenues from the additional jobs and business is making up for the lost tax revenue.

Government tax revenues are on target, but analysts warn fears about the global economy and jitters about the UK staying in the EU could yet disrupt finances in the months ahead.

The outlook for the economy remains remarkably rosy, as long as a number of big threats, including the potential for the UK to vote to leave the EU, are allayed, Central Bank officials have predicted.