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 January 2022, 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
26-Jan-2022 0 1/8% Index-linked Treasury Gilt 2051 3 months 600.0000 Million
18-Jan-2022 0½% Treasury Gilt 2029 3,124.9980 Million
11-Jan-2022 0 3/8% Treasury Gilt 2026 3,000.0000 Million
£600.0000 Million + £3,124.9980 Million + £3,000.0000 = £6,724.998 Million
£6,724.998 Million = £6.724998 Billion
On another way of looking at it, is in the 31 days in January 2022, HM Government borrowed:- £ 216.93541935483870967741935483871 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……