So in the past 12 months, HM Government has had to tap the bond market to raise money as the UK government spends more money that is receives in income. Government income of course comprises of income tax, corporation tax, duties on alcohol and tobacco, oil leases, mobile phone spectrum auctioned etc etc. To bridge that gap, HM Governmen via the Debt Management Office (www.dmo.gov.uk) issues bonds known as Gilts.

In 2013-14 HM Government had to borrow £107.7 billion. That is £8980 million a month !!

[2012-13 HM Government had to borrow £115.1bn for the year which was £9591 million a month]

So what we see here is a clear example of how the UK’s structural debt is growing each year, in the past 2 years we see the debt has grown by £107.7 Billion + £115.1 Billion = £222.80 Billion]

Just looking at the past 12months, with borrowing of £107.7 Billion, taking an approximate interest rate of 2% on that annual debt, then the interest (not the capital), alone is costing the UK Taxpayer £2.154 Billion a year just on the debt of 2013-14.

Now the UK has been running a deficit each year for over 10 years, so that is why UK Debt repayments are now over £20 Billion a year. It is incredible for all the wrong reasons.

The good news is that “we are in it together“