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 August 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-

23-Aug-2017 0¾% Treasury Gilt 2023 £3,158.6280 Million
08-Aug-2017 0 1/8% Index-linked Treasury Gilt 2026 £1,000.0000 Million
01-Aug-2017 1¼% Treasury Gilt 2027 £2,250.0000 Million

When you add the cash raised:-

∑(£3,158.6280  Million + £1,000.0000  Million + £2,250.0000 Million) =  £6,408.63 Million
Million

£6,408.63 Million  = £6.40863  Billion

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

£206 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 2023, 2026 and 2027. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”