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 May 2020 , the HM Government had to borrow money to meet the difference between tax revenues and public sector expenditure and deal with the economic damage from Covid19. The term for this is The PSNCR: The Public Sector Net Cash Requirement. There were “only” 14 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

28-May-2020 1¼% Treasury Gilt 2027 2,927.5000 Million
28-May-2020 1¾% Treasury Gilt 2049 2,357.7500 Million
27-May-2020 0 1/8% Treasury Gilt 2023 3,750.0000 Million
27-May-2020 1¾% Treasury Gilt 2057 1,785.4990 Million
21-May-2020 0 1/8% Index-linked Treasury Gilt 2028 3 months 1,562.4990 Million
21-May-2020 4¼% Treasury Stock 2032 2,500.0000 Million
20-May-2020 0¾% Treasury Gilt 2023 3,869.6240 Million
14-May-2020 0 5/8% Treasury Gilt 2025 3,250.0000 Million
14-May-2020 1¼ % Treasury Gilt 2041 2,250.0000 Million
13-May-2020 0 1/8% Index-linked Treasury Gilt 2048 3 months 745.8500 Million
06-May-2020 0 1/8% Treasury Gilt 2023 3,897.9580 Million
06-May-2020 1 5/8% Treasury Gilt 2054 1,750.0000 Million
05-May-2020 1 5/8% Treasury Gilt 2028 3,000.0000 Million
05-May-2020 2% Treasury Gilt 2025 4,062.4990 Million

When you add the cash raised:-

£2,927.5000 Million + £2,357.7500 Million + £3,750.0000 Million + £1,785.4990 Million + £1,562.4990 Million + £2,500.0000 Million + £3,869.6240 Million + £3,250.0000 Million + £2,250.0000 Million + £745.8500 Million + £3,897.9580 Million + £1,750.0000 Million + £3,000.0000 Million + £4,062.4990 Million
= £37709.18 Million = £37.70918 Billion

On another way of looking at it, is in the 31 days in May 2020, HM Government borrowed:- £1,216.425129 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 from 2023 through to 2054. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”