The Chancellor borrowed more than expected at the start of the new tax year, piling more pressure on the public finances ahead of next month’s spending review.

Data from the Office for National Statistics (ONS) showed estimated net borrowing of £20.2bn in April – higher than the £17.9bn forecast by economists and the fourth highest April total on record.

That was despite a £1.7bn projected boost from employer national insurance contributions – hiked in October’s budget to help get the public finances in order and which kicked-in on 6 April.

The main reasons for the rise in borrowing included increases in public sector pay, along with higher benefits and state pensions, the ONS said.

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The data will do nothing to ease nerves over the state of the nation’s coffers amid renewed concerns Rachel Reeves may be forced to act again, in the autumn budget, to meet her own “non-negotiable” fiscal rules.

They say she must balance day-to-day spending with revenues by 2029-30, while improving public services and targeting accelerated economic growth.

The Chancellor was forced to restore a £10bn buffer at the spring statement in March, led by planned welfare curbs, after the economy flatlined.

A further restoration of headroom may be on the cards in October, given that stronger growth in the first quarter of the year is forecast to prove elusive across the rest of 2025.

The run-up to next month’s spending review – which sets budgets for government departments – has been dominated by a political row over one of her first actions in the role, which saw universal winter fuel payments stopped.

Prime Minister Sir Keir Starmer confirmed on Wednesday that a U-turn, of sorts, is on the cards.

The prospect of a higher bill ahead will do nothing to ease the cost of servicing government debt, with bond market investors continuing to demand a higher premium to hold UK gilts.

Their concerns include not only the forecasts for slowing growth but also persistent inflation.

One good bit of news for Ms Reeves was a downwards revision by the ONS to its government borrowing figure for the last financial year.

The total dropped by almost £4bn to £148.3bn.

The shift was explained by higher tax receipts but the sum still remained about £11bn above the updated forecast by the Office for Budget Responsibility.

Darren Jones, chief secretary to the Treasury, said of the ONS figures: “After years of economic instability crippling the public purse, we have taken the decisions to stabilise our public finances, which has helped deliver four interest rate cuts since August, cutting the cost of borrowing for businesses and working people.

“We’re fixing the NHS, with three million more appointments to bring waiting lists down, rebuilding Britain with our landmark planning reforms and strengthening our borders, delivering on the priorities of the country through our plan for change.”

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There is a growing school of thought that Ms Reeves will need to raise taxes in October if she is to meet her commitments, including her fiscal rules.

Lindsay James, investor strategist at wealth management firm Quilter, said: “The decision to hold off on tax rises in the spring budget increasingly looks like a temporary reprieve.

“As borrowing continues to outstrip forecasts and debt interest costs remain elevated, pressure is building on the chancellor to make tougher choices.”

There are multiple layers to this shocking act of extreme violence.

The presence of the US attorney general at a midnight news conference is a clear indication of the Trump administration’s shock and swift reaction. Pam Bondi had already visited the scene of the attack.

The president himself was quick to comment on social media, calling it out as antisemitism and saying: “Hatred and Radicalism have no place in the USA.”

Israeli embassy staff shooting suspect ‘shouted free Palestine’ – follow live updates

There will be immediate questions for the US authorities about the security of Israeli diplomats. The shooting happened in the downtown area of DC, not far from the FBI field office and the FBI headquarters.

The two victims are understood to be junior aides and so probably not considered particular targets. But the shooting will prompt a fresh look at diplomatic security arrangements.

A video has emerged online said to show the gunman calmly shouting “free free Palestine” as he was detained by museum security.

Pro-Palestinian protests have been intense on college campuses, outside embassies and elsewhere; the Israeli embassy in Washington has been a particular focus of protesters.

Last year, a 25-year-old active duty US airman immolated himself in front of the Israeli embassy in Washington to protest the war in Gaza.

Israel’s diplomatic relations with close allies, including the UK, France and others, have become increasingly strained over the methods used in its continuing war in Gaza.

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Authorities will also be braced for how this incident plays in the days ahead.

There will be a concern within the Trump administration that this man’s actions will be given some glorification in parts of society, mainly online, in the same way Luigi Mangione became not just infamous but famous for allegedly shooting dead a healthcare executive in protest of corporate greed.

Expect prompt condemnation from the White House of any such glorification.

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There is also a deeply tragic twist to this shooting. The two young victims were a couple and were due to travel to Jerusalem in the days ahead to become engaged.

I’ve been in touch with contacts at the Israeli embassy where the entire team is in shock and reeling at the loss of two of their own on the streets of Washington.

The government has been temporarily blocked from concluding the Chagos Islands deal by a late-night High Court injunction.

Ministers had been expected to complete a deal that would have seen the UK hand over sovereignty of the archipelago to Mauritius in the coming hours.

But in an emergency injunction granted early on Thursday, brought against the Foreign Office, Mr Justice Goose allowed “interim relief” to Bertrice Pompe, who had previously taken steps to bring legal action over the deal.

Ms Pompe is a Chagossian woman who sees the deal as a betrayal of their rights.

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The order, granted at 2.25am, states the government may take “no conclusive or legally binding step to conclude its negotiations concerning the possible transfer of the British Indian Ocean Territory, also known as the Chagos Archipelago, to a foreign government or bind itself as to the particular terms of any such transfer”.

A hearing is taking place at the High Court this morning, with crowds gathered in support of the block.

The government insisted this morning the Chagos Islands deal is the “right thing” for the UK.

A spokesperson said: “We do not comment on ongoing legal cases. This deal is the right thing to protect the British people and our national security.”

It was expected that Sir Keir Starmer would attend a virtual ceremony today to formally hand over sovereignty of the Chagos Islands to Mauritius, despite heavy criticism from the Conservatives and Reform UK.

The government has argued international legal rulings in favour of Mauritius mean this handover is necessary.

As part of the deal, the UK will lease back a military base on the archipelago for 99 years.

Robert Jenrick, the former justice secretary, told Sky News that the Chagos Islands deal is a “sell-out for British interests”.

He said: “You’re seeing British sovereign territory being given away to an ally of China and billions of pounds of British taxpayers money being spent for the privilege.

“So, if this group can force the government to think twice, then all power to them.”

With this injunction in place, Sir Keir can no longer legally complete the deal.

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Ms Pompe, who filed the application for interim relief, believes the British government is acting with disregard for the human rights of the Chagossian people.

She has argued completion of the deal would amount to a breach of the Human Rights Act and the Equality Act.

Chagossians are the former residents of the Chagos Islands, who were removed from the islands, predominantly to Mauritius, between the mid-1960s and early-1970s.

Those born on the islands and their children hold British nationality, but subsequent generations born outside British territory have no entitlement to it.