HM UK Government Borrowings: Feb 2023
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 Feb 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” 6 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
22-Feb-2023 1½% Green Gilt 2053 2,000.0000
21-Feb-2023 0½% Treasury Gilt 2029 3,500.0000
14-Feb-2023 3¼% Treasury Gilt 2033 3,000.0000
08-Feb-2023 1 1/8% Treasury Gilt 2039 2,000.0000
07-Feb-2023 4 1/8% Treasury Gilt 2027 3,500.0000
01-Feb-2023 0 7/8% Green Gilt 2033 3,000.0000
£2,000.0000 Million + £3,500.0000 Million + £3,000.0000 Million + £2,000.0000 Million + £3,500.0000 Million + £3,000.0000 Million = £17,000 Million
£17,000 Million = £17.000 Billion
On another way of looking at it, is in the 28 days in Feb 2023, HM Government borrowed:- £607.14285714285714285714285714286 Million each day for the 28 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 2029 to 2053. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“