The Commons Treasury committee has concluded that Gordon Brown is on track to meet the requirements of his "golden rule" on government borrowing.

MPs said they welcomed the renewed vigour of the UK economy, and congratulated the chancellor for his growth forecasts which, contrary to widespread expert analysis, had proved to be accurate.

Number 11 will also be heartened by the committee's assertion that the government remains on track to meet the golden rule for borrowing over the economic cycle, although it warns that the margin for error has diminished over recent months.

The committee came to a similar conclusion regarding the sustainable investment rule.

However, the MPs warn that lower than expected tax receipts for the economic year 2003/04 could be storing up trouble for the future.

The committee "hopes the overestimation over the last three years of both absolute tax receipts and taxes as a proportion of GDP will not continue", and calls for greater transparency in the Treasury's tax forecasts.

The committee also expressed scepticism that spending on public services is sustainable, and appeared unconvinced that efficiency savings will deliver the expected savings.

It observes that "this programme involves a challenging target which leaves little room for manoeuvre".

However, the MPs reserve their greatest censure for the controversial moves on the zero rate of corporation tax.

"We are puzzled that, unlike other commentators, the tax authorities and the Treasury did not anticipate the likely effect of introducing the zero rate," said the report.

"We are concerned about the possible compliance burdens of the proposals compared with abolishing the zero rate band."

The committee also raises question marks over the Treasury's policy on savings and capping ISAs at £3,000, and warns the Treasury against milking new rules on housing supply, a move which might deter new developments.