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 July 2021, 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” 6 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
27-Jul-2021 0 3/8% Treasury Gilt 2026 3,000.0000 Million
20-Jul-2021 1 5/8% Treasury Gilt 2071 1,562.5000 Million
07-Jul-2021 0 1/8% Index-linked Treasury Gilt 2051 3 months 701.0500 Million
06-Jul-2021 0¼% Treasury Gilt 2031 3,437.4990 Million
06-Jul-2021 0½% Treasury Gilt 2061 1,866.2500 Million
01-Jul-2021 0¼% Treasury Gilt 2025 4,232.4970 Million
£3,000.0000 Million + £1,562.5000 Million + £701.0500 Million + £3,437.4990 Million + £1,866.2500 Million + £4,232.4970 Million = £14,799.796 Million
£14,799.796 Million = £14.799796 Billion
On another way of looking at it, is in the 31 days in July 2021, HM Government borrowed:- £477.41277419354838709677419354839 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 2025 through to 2071. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”