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 July 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-
03-Jul-2018 1 5/8% Treasury Gilt 2028 £2,874.9950 Million
19-Jul-2018 1¾% Treasury Gilt 2057 £2,299.9970 Million
24-Jul-2018 1% Treasury Gilt 2024 £2,750.0000 Million
When you add the cash raised:-
(£2,874.9950 Million + £2,299.9970 Million + £2,750.0000 Million) = £7924.992 Million
£7924.992 Million = £7.924992 Billion
On another way of looking at it, is in the 31 days in July, HM Government borrowed:-
£255.6449032 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 2028, 2028 and 2057. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”