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. [www.dmo.gov.uk]
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” 8 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
27-Jan-2021 0 1/8% Index-linked Treasury Gilt 2031 3 months £1,036.3000 Million
26-Jan-2021 0 5/8% Treasury Gilt 2035 £2,936.2500 Million
26-Jan-2021 0 5/8% Treasury Gilt 2050 £1,750.0000 Million
21-Jan-2021 0 1/8% Treasury Gilt 2024 £3,250.0000 Million
13-Jan-2021 0 1/8% Index-linked Treasury Gilt 2065 3 months £375.0000 Million
12-Jan-2021 0 1/8% Treasury Gilt 2028 £3,000.0000 Million
12-Jan-2021 1 5/8% Treasury Gilt 2054 £1,450.6240 Million
06-Jan-2021 0¼% Treasury Gilt 2031 £3,749.9990 Million
£1,036.3000 Million + £2,936.2500 Million + £1,750.0000 Million + £3,250.0000 Million + £375.0000 Million + £3,000.0000 Million + £1,450.6240 Million + £3,749.9990 Million = £17,548.17 Million
£17,548.17 Million = £17.54817 Billion
On another way of looking at it, is in the 31 days in Jan 2021, HM Government borrowed:- £566.0700968 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 2024 through to 2054. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”