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 2020 , 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” 4 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
28-Jan-2020 0 7/8% Treasury Gilt 2029 2,750.000 Million
21-Jan-2020 1¼ % Treasury Gilt 2041 2,545.8720 Million
14-Jan-2020 0 5/8% Treasury Gilt 2025 3,250.0000 Million
09-Jan-2020 0 1/8% Index-linked Treasury Gilt 2028 1,056.0370 Million
07-Jan-2020 0 7/8% Treasury Gilt 2029 3,162.4970 Million
When you add the cash raised:-
£2,750.000Million + £2,545.8720Million + 3,250.0000Million + £1,056.0370Million + £3,162.4970Million = £12,764.406 Million
£12,764.406 Million = £12.764406Billion
On another way of looking at it, is in the 31 days in Jan 2020, HM Government borrowed:- £411.7550322580645Million 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 and 2041. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”