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 June 2023, 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” 6 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
28-Jun-2023 3¾% Treasury Gilt 2038 3,437.4990 Million
27-Jun-2023 0¾% Index-linked Treasury Gilt 2033 3 months 1,690.3500 Million
20-Jun-2023 4½% Treasury Gilt 2028 4,687.4990 Million
13-Jun-2023 3¼% Treasury Gilt 2033 3,500.0000 Million
07-Jun-2023 3½% Treasury Gilt 2025 4,076.1620 Million
06-Jun-2023 3¾% Treasury Gilt 2053 3,112.4990 Million
£3,437.4990 Million + £1,690.3500 Million + £4,687.4990 Million + £3,500.0000 Million + £4,076.1620 Million + £3,112.4990 Million = £20,504.009 Million
£20,504.009 Million = £20.504009 Billion
On another way of looking at it, is in the 30 days in June 2023, HM Government borrowed:- £683.46696666666666666666666666667 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 bonds maturing from 2025 to 2053. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“