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 November 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:-
16-Nov-2021 0 7/8% Treasury Gilt 2046 £2,170.3750 Million
10-Nov-2021 0 1/8% Index-linked Treasury Gilt 2031 3 months £900.0000 Million
03-Nov-2021 0½% Treasury Gilt 2029 £2,500.0000 Million
02-Nov-2021 0¼% Treasury Gilt 2025 £3,000.0000 Million
02-Nov-2021 1 5/8% Treasury Gilt 2071 £1,533.7500 Million
£2,170.3750 Million + £900.0000 Million + £2,500.0000 Million + £3,000.0000 Million + £1,533.7500 Million = £10,104.125 Million
£10,104.125 Million = 10.104125 Billion
Another way of looking at it, is in the 30 days in November 2021, HM Government borrowed: £336.8041666666667 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 2029 through to 2071. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together…”