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. Another deficit month, thus to bridge the gap, needs to borrow on the bond market.

In November 2015, 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury :-
18-Nov-2015 2% Treasury Gilt 2025 £3,347.4600 Million
12-Nov-2015 4¼% Treasury Gilt 2039 £1,500.0000 Million
10-Nov-2015 0 1/8% Index-linked Treasury Gilt 2058 £769.8750 Million

When you add the cash raised:-

∑(£3,347.460 Million + £1,500.000 Million + £769.875 Million) =  £5,617.34 Million

£5,617.34 Million = £5.61734 Billion

On another way of looking at it, is in the 30 days in November, HM Government borrowed:-

£187 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 bond mature 2025, 2039 and 2058. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together…”