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.09
Now we are in a post Covid 19 world. UK’s HM Government needs to fund many new demands. [www.dmo.gov.uk]
https://dmo.gov.uk/data/pdfdatareport?reportCode=D2.1PROF7
Another deficit month, thus to bridge the gap, needs to borrow on the bond market in Sept 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” 5 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
26-Sep-2023 0 7/8% Green Gilt 2033 £3,000.0000 Million
19-Sep-2023 3¾% Treasury Gilt 2053 £2,750.0000 Million
13-Sep-2023 3¼% Treasury Gilt 2033 £4,002.1250 Million
12-Sep-2023 0 1/8% Index-linked Treasury Gilt 2051 3 months £910.0000 Million
06-Sep-2023 4½% Treasury Gilt 2028 £4,660.4250 Million
£3,000.0000 Million + £2,750.0000 Million + £4,002.1250 Million + £910.0000 Million + £4,660.4250 Million = £15,322.55 Million
£15,322.55 Million = £15.32255 Billion
On another way of looking at it, is in the 30 days in Sept 2023, HM Government borrowed:- £510.75166666666666666666666666667 Million each day for the 30 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 2028 to 2053. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“
