HM Government Borrowings: October 2019

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 October 2019 , 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 to raise cash for HM Treasury:-

29-Oct-2019 0 1/8% Index-linked Treasury Gilt 2028 3 months £1,100.0000 Million

22-Oct-2019 0 5/8% Treasury Gilt 2025 £3,449.9970 Million

15-Oct-2019 0 7/8% Treasury Gilt 2029 £3,162.4990 Million

08-Oct-2019 0 1/8% Index-linked Treasury Gilt 2036 3 months £919.9980 Million

01-Oct-2019 1¾% Treasury Gilt 2037 £2,250.0000 Million

When you add the cash raised:-

£1,100.0000 Million + £3,449.9970 Million + £3,162.4990 Million + 919.9980 Million + £2,250.0000 Million = £10882.494 Million

£10882.494 Million = £10.882 Billion

On another way of looking at it, is in the 31 days in October, HM Government borrowed:- £351.048 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 2025, 2028, 2029, 2036 and 2037. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….

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