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 September 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:-
24-Sep-2019 0 1/8% Index-linked Treasury Gilt 2048 3 months 574.9950
05-Sep-2019 0 7/8% Treasury Gilt 2029 2,750.0000
03-Sep-2019 0 5/8% Treasury Gilt 2025 3,000.0000
When you add the cash raised:- £574.9950 Million + £2,750.0000 Million + £3,000.0000 Million = £6324.995 Million
£6324.995 Million = £6.324 Billion
Another way of looking at it, is in the 30 days in September, HM Government borrowed:- £210.83316 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 2025, 2029 and 2048. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”