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. https://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 November 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:-
29-Nov-2023 3½% Treasury Gilt 2025 £4,678.8750 million
28-Nov-2023 3¾% Treasury Gilt 2053 £2,750.0000 million
08-Nov-2023 0 1/8% Index-linked Treasury Gilt 2051 3 months £1,042.4500 million
07-Nov-2023 4 5/8% Treasury Gilt 2034 £4,392.3310 million
01-Nov-2023 4½% Treasury Gilt 2028 £4,598.5680 million
£4,678.8750 million+ £2,750.0000 million + £1,042.4500 million + £4,392.3310 million + £4,598.5680 million = £17,462.224 Million
£17,462.224Million = £17.462224 Billion
On another way of looking at it, is in the 30 days in Nov 2023, HM Government borrowed:- £582.07413333333333333333333333333 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 2025 to 2051. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“
