UK private sector shrinking as firms cut jobs; pressure to raise taxes as government borrowing jumps – as it happened

Rolling coverage of the latest economic and financial news

• UK borrowing rises to 20.2bn, putting pressure on Rachel Reeves
• Jump in UK borrowing shows Rachel Reeves needs to relax her strict budget rules

The UK government borrowed more than expected in April, underscoring the challenge for Rachel Reeves to fix public services and grow the economy while meeting her fiscal rules.

With the chancellor under pressure on Labour's tax plans, the Office for National Statistics (ONS) said public sector net borrowing rose to 20.2bn in April, 1bn more than the same month a year earlier. City economists had forecast borrowing of 17.9bn.