Another month, guess what, take a wild guess, it is the same old story, HM Government, spends more money than it receives via taxes. Another deficit month, thus to bridge the gap, needs to borrow on the bond market.

In November 2013, 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” 5 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury :-

28-Nov-2013 3¼% Treasury Gilt 2044 £2,749.8680 million
21-Nov-2013 1¾% Treasury Gilt 2019 £4,750.0000 million
19-Nov-2013 2¼% Treasury Gilt 2023  £4,124.4880 million
14-Nov-2013 4¼% Treasury Stock 2036 £2,474.9590 million
05-Nov-2013 0¼% Index-linked Treasury Gilt 2052  £1,252.0000 million

When you add the cash raised:-

∑(£2,749.8680 Million + 4,750.0000 Million + £4,124.4880 Million + £2,474.9590 Million + £1,252.0000 Million) = £15,351  Million

£15,35  Million = £15.351 Billion

On another way of looking at it, is in the 31 days in November HM Government borrowed:-

£511 million each day for 30 days. We are fortunate, while the global banking and financial markets still has the confidence in HM Government to buy the Gilts. The budget deficit keeps rising. What is also alarming, is the dates these bond mature, 2019, 2023, 2036, 2044 and 2052. All long term borrowings, we are mortgaging our futures.