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 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:-
25-Jul-2023 3¾% Treasury Gilt 2038 £3,000.0000 Million
19-Jul-2023 4½% Treasury Gilt 2028 £3,750.0000 Million
18-Jul-2023 3¾% Treasury Gilt 2053 £2,500.0000 Million
12-Jul-2023 3¼% Treasury Gilt 2033 £3,500.0000 Million
05-Jul-2023 3½% Treasury Gilt 2025 £4,643.0590 Million
04-Jul-2023 1½% Green Gilt 2053 £2,000.0000 Million
£3,000.0000 Million + £3,750.0000 Million + £2,500.0000 Million + £3,500.0000 Million + £4,643.0590 Million + £2,000.0000 Million = £19,393.059 Million
£19,393.059 Million = £19.393059 Billion
On another way of looking at it, is in the 31 days in July 2023, HM Government borrowed:- £625.58254838709677419354838709677 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……“