HM Government Borrowings: September 2021

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 September 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” 8 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

28-Sep-2021 1¼% Treasury Gilt 2051 £2,000.0000 Million
22-Sep-2021 0 1/8% Index-Linked Treasury Gilt 2056 3 months £350.0000 Million
15-Sep-2021 0¼% Treasury Gilt 2031 £2,857.9160 Million
14-Sep-2021 0 3/8% Treasury Gilt 2026 £3,000.0000 Million
08-Sep-2021 0 1/8% Index-linked Treasury Gilt 2031 3 months £1,010.7250 Million
07-Sep-2021 0¼% Treasury Gilt 2025 £3,250.0000 Million
07-Sep-2021 1 5/8% Treasury Gilt 2071 £1,250.0000 Million
01-Sep-2021 0½% Treasury Gilt 2029 £2,859.0000 Million


£2,000.0000 Million+ £350.0000 Million + £2,857.9160 Million + £3,000.0000 Million + £3,250.0000 Million + £1,250.0000 Million + £2,859.0000 Million= £16,577.641 Million

£16,577.641 Million = £16.577641 Billion

On another way of looking at it, is in the 30 days in Sept 2021, HM Government borrowed:- £552.58803333333333333333333333333 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 2025 through to 2071. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….

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