Another month, guess what, take a lucky guess, it is the same old story, HM Government, spends more money than it receives via taxes and duties. Another deficit month, thus to bridge the gap, needs to borrow on the bond market.
In January 2018 , the HM Government had to borrow money to meet the difference between tax revenues and public sector expenditure. The term for this is The PSNCR: The Public Sector Net Cash Requirement.
There were “only” 4 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-
23-Jan-2018 0 1/8% Index-linked Treasury Gilt 2026 3 months £1,000.0000 Million
18-Jan-2018 0¾% Treasury Gilt 2023 £2,500.0000 Million
11-Jan-2018 1¾% Treasury Gilt 2037 £2,250.0000 Million
09-Jan-2018 1¼% Treasury Gilt 2027 £2,587.4970 Million
When you add the cash raised:-
∑(£1,000.0000 Million + £2,500.0000 Million + £2,250.0000 Million + £2,587.4970 Million ) = £8337.497 Million
£8337.497 Million = £8337.497 Billion
On another way of looking at it, is in the 31 days in January, HM Government borrowed:-
£268.9 million each day for the 31 days.
We are fortunate, while the global banking and financial markets still has the confidence in HM Government to buy the Gilts (Lend money to the UK), the budget deficit keeps rising. What is also alarming, is the dates these bond mature 2023, 2026, 2027 and 2037. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”