HM Government Borrowings Nov 2020

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.

Now we are in a Covid 19 world. UK’s HM Government needs to fund many new demands. []

Another deficit month, thus to bridge the gap, needs to borrow on the bond market In October 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” 15 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

24-Nov-2020 1¼% Treasury Gilt 2027 £3,002.7500 Million
24-Nov-2020 1¾% Treasury Gilt 2057 £1,562.4990 Million
18-Nov-2020 0 5/8% Treasury Gilt 2035 £2,500.0000 Million
17-Nov-2020 0 1/8% Treasury Gilt 2024 £4,062.4990 Million
17-Nov-2020 0 5/8% Treasury Gilt 2050 £2,500.0000 Million
12-Nov-2020 0¼% Treasury Gilt 2031 £3,749.9990 Million
12-Nov-2020 1 5/8% Treasury Gilt 2054 £1,562.4990 Million
11-Nov-2020 0 1/8% Index-linked Treasury Gilt 2036 3 months £861.4000 Million
04-Nov-2020 0 1/8% Treasury Gilt 2026 £3,000.0000 Million
03-Nov-2020 0 1/8% Treasury Gilt 2028 £3,405.6250 Million
03-Nov-2020 1¼ % Treasury Gilt 2041 £2,499.9990 Million

[£3,002.7500 Million+£1,562.4990 Million+£2,500.0000 Million+£4,062.4990 Million+£2,500.0000 Million+£3,749.9990 Million+£1,562.4990 Million+£861.4000 Million+£3,000.0000 Million+£3,405.625 Million+£2,499.9990 Million = £28,707.27 Million]

£28,707.27 Million = £28.70727 Billion

On another way of looking at it, is in the 30 days in November 2020, HM Government borrowed:- £956.909 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 2045. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”

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