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 August 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” 5 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
24-Aug-2021 0 3/8% Treasury Gilt 2026 £3,000.0000 Million
17-Aug-2021 0 7/8% Treasury Gilt 2046 £2,274.2500 Million
11-Aug-2021 0 1/8% Index-linked Treasury Gilt 2039 3 months £705.0000 Million
10-Aug-2021 0¼% Treasury Gilt 2031 £3,437.4990 Million
03-Aug-2021 1¼% Treasury Gilt 2051 £2,000.0000 Million
£3,000.0000 Million + £2,274.2500 Million + £705.0000 Million + £3,437.4990 Million + £2,000.0000 Million = £11,416.749 Million
£11,416.749 Million = £11.416749 Billion
On another way of looking at it, is in the 31 days in August 2021, HM Government borrowed:- £368.28222580645161290322580645161 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 2026 through to 2051. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”