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 post 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 2023, 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:-
19-Jan-2023 0 1/8% Index-linked Treasury Gilt 2031 3 months 1,195.9250
17-Jan-2023 3½% Treasury Gilt 2025 4,440.7500
10-Jan-2023 3¼% Treasury Gilt 2033 3,702.5000
£1,195.9250 Million + £4,440.7500 Million + £3,702.5000 Million = £9,339.175 Million
£9,339.175 Million = £9.339175 Billion
On another way of looking at it, is in the 31 days in January 2023, HM Government borrowed:- £301.26370967741935483870967741935 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 bonds maturing from 2025 to 2033. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“