The UK public sector borrowing reached £24.3 billion in April, the highest total for the month since the Covid pandemic in 2020.

This represents a £4.9 billion increase from the same period last year.

The surge in borrowing is attributed to higher spending on benefits and other costs, which offset higher tax receipts.

Retail sales volumes also declined in April, with the fastest pace of decline in almost a year, due to increased petrol prices.

The deteriorating growth outlook and fragile fiscal backdrop are expected to impact the UK economy, with households facing higher fuel bills and the Bank of England no longer expected to cut interest rates.