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.
Now we are in a post Covid 19 world. UK’s HM Government needs to fund many new demands. [www.dmo.gov.uk]
Another deficit month, thus to bridge the gap, needs to borrow on the bond market In July 2022, 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 5 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
27-Jul-2022 0 1/8% Index-linked Treasury Gilt 2051 3 months £700.0000 Million
21-Jul-2022 0¼% Treasury Gilt 2025 £4,366.2490 Million
19-Jul-2022 1 1/8% Treasury Gilt 2039 £2,500.0000 Million
12-Jul-2022 1% Treasury Gilt 2032 £3,437.5000 Million
05-Jul-2022 1¼% Treasury Gilt 2051 £2,378.7500 Million
£700.0000 Million + £4,366.2490 Million + £2,500.0000 Million + £3,437.5000 Million + £2,378.7500 Million = £13,382.499 Million
£13,382.499 Million = £13.382499 Billion
On another way of looking at it, is in the 31 days in July 2022, HM Government borrowed:- £431.69351612903225806451612903226 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 maturing from 2025 to 2051. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together……”