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 June 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” 16 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
25-Jun-2020 0 1/8% Index-linked Treasury Gilt 2029 3 months £1,229.5760
24-Jun-2020 1 5/8% Treasury Gilt 2054 £1,768.2500 Million
24-Jun-2020 2¾% Treasury Gilt 2024 £3,250.0000 Million
23-Jun-2020 0 1/8% Treasury Gilt 2026 £3,250.0000 Million
23-Jun-2020 0 3/8% Treasury Gilt 2030 £3,628.7500 Million
17-Jun-2020 0 1/8% Treasury Gilt 2023 £4,260.7490 Million
17-Jun-2020 1¼ % Treasury Gilt 2041 £2,812.5000 Million
16-Jun-2020 1½% Treasury Gilt 2026 £3,716.2500 Million
16-Jun-2020 4¾% Treasury Gilt 2030 £2,000.0000 Million
11-Jun-2020 0 1/8% Treasury Gilt 2028 £4,036.6240 Million
11-Jun-2020 1% Treasury Gilt 2024 £3,250.0000 Million
10-Jun-2020 0 1/8% Index-linked Treasury Gilt 2036 £900.0000 Million
03-Jun-2020 1 5/8% Treasury Gilt 2054 £1,500.0000 Million
03-Jun-2020 2¼% Treasury Gilt 2023 £3,941.2490 Million
02-Jun-2020 0 1/8% Treasury Gilt 2026 £3,328.7500 Million
02-Jun-2020 0 3/8% Treasury Gilt 2030 £3,749.9990 Million
When you add the cash raised:-
1,229.58 Million + 1,768.25 Million + 3,250.00 Million + 3,250.00 Million + 3,628.75 Million + 4,260.75 Million + 2,812.50 Million + 3,716.25 Million + 2,000.00 Million + 4,036.62 Million + 3,250.00 Million + 900.00 Million + 1,500.00 Million + 3,941.25 Million + 3,328.75 Million + 3,750.00 = £46,622.697 Million
£46,622.697 Million = £46.622 Billion
On another way of looking at it, is in the 30 days in June 2020, HM Government borrowed:- £1,554.0899 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 from 2024 through to 2057. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”