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 2017, 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 (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-

31-Jan-2017 1½% Treasury Gilt 2026 £2,444.0460 Million
18-Jan-2017 0½% Treasury Gilt 2022 £2,881.9490 Million
12-Jan-2017 2% Treasury Gilt 2025 £2,250.0000 Million
10-Jan-2017 0 1/8% Index-linked Treasury Gilt 2046 £837.7980 Million
05-Jan-2017 1¾% Treasury Gilt 2037 £2,329.9140 Million

When you add the cash raised:-

∑(£2,444.0460 Million + £2,881.9490 Million + £2,250.0000 Million + £837.7980 Million + £2,329.9140 Million =  £10,743.707  Million

£10,743.707  Million = £10.743707 Billion

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

£346 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 2022, 2025, 2026 and 2037. All long term borrowings, we are mortgaging our futures, but at least “We are in it together…”