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 January 2016, 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” 4 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury :-
20-Jan-2016 1½% Treasury Gilt 2021 £4,000 Million
12-Jan-2016 0 1/8% Index-linked Treasury Gilt 2046 £989.9770 Million
07-Jan-2016 4% Treasury Gilt 2060 £1,500 Million
05-Jan-2016 2% Treasury Gilt 2025 £3,000 Million
When you add the cash raised:-

∑(£4,000 Million + £989.9770 Million + £1,500 Million £3,000 Million) =  £9,489.977 Million

£9,489.977 Million= £9.489 Billion

On another way of looking at it, is in the 31 days in January, HM Government borrowed:-

£306 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 bond mature 2021, 2025, 2046 and 2060. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together…”