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 2018 , 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:-

20-Nov-2018 0 1/8% Index-Linked Treasury Gilt 2056 3 months £555.0650 Million
15-Nov-2018 1¾% Treasury Gilt 2037 £2,299.9970 Million
06-Nov-2018 1 5/8% Treasury Gilt 2028 £2,250.0000 Million

When you add the cash raised:-

(£555.0650 Million + £2,299.9970 Million + £2,250.0000 Million) =  £5105.062 Million

£5105.062 Million = £5.105062 Billion

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

£170.1687333333333 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, 2028, 2037 and 2056. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”