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 April 2024, 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:-
30-Apr-2024 4 1/8% Treasury Gilt 2029 £4,000.0000 Million
17-Apr-2024 4% Treasury Gilt 2031 £3,750.0000 Million
16-Apr-2024 0¾% Index-linked Treasury Gilt 2033 3 months £1,622.0750 Million
10-Apr-2024 3¾% Treasury Gilt 2027 £5,000.0000 Million
09-Apr-2024 4¾% Treasury Gilt 2043 £2,783.6230 Million
04-Apr-2024 4 5/8% Treasury Gilt 2034 £3,750.0000 Million
£4,000.0000million+ £3,750.0000 million + £1,622.0750 million + £5,000.0000 million + £2,783.6230 million + £3,750.0000 million = £20,905.698 Million
£20,905.698 Million = £20.905698 Billion
On another way of looking at it, is in the 30 days in April 2024, HM Government borrowed:- £696.8566 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 2027 to 2043. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“
