HM Government Borrowings: October 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 October 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” 7 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

6-Oct-2021 0 3/8% Treasury Gilt 2026 £2,750.0000 Million
20-Oct-2021 0¼% Treasury Gilt 2031 £2,812.5000 Million
13-Oct-2021 0 1/8% Index-linked Treasury Gilt 2051 3 months £567.4000 Million
12-Oct-2021 0½% Treasury Gilt 2061 £1,562.5000 Million
06-Oct-2021 0½% Treasury Gilt 2029 £3,125.0000 Million
05-Oct-2021 0¼% Treasury Gilt 2025 £3,000.0000 Million
05-Oct-2021 1 1/8% Treasury Gilt 2039 £2,288.1250 Million


£2,750.0000 Million + £2,812.5000 Million + £567.4000 Million + £1,562.5000 Million + £3,125.0000 Million + £3,000.0000 Million + £2,288.1250 Million = £16,105.525 Million

£16,105.525 Million = £16.105525 Billion

On another way of looking at it, is in the 31 days in October2021, HM Government borrowed:- £519.53306451612903225806451612903 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 2061. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….

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