HM Government December 2023 Borrowings

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.

Another deficit month, thus to bridge the gap, needs to borrow on the bond market in December 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” 5 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

19-Dec-2023 4 5/8% Treasury Gilt 2034 £3,000.0000 Million
13-Dec-2023 3¾% Treasury Gilt 2053 £2,500.0000 Million
12-Dec-2023 4½% Treasury Gilt 2028 £4,687.4980 Million
06-Dec-2023 0 7/8% Green Gilt 2033 £3,000.0000 Million
05-Dec-2023 0¾% Index-linked Treasury Gilt 2033 3 months £1,567.4500 Million

£3,000.0000 Million + £2,500.0000 Million + £4,687.4980 Million + £3,000.0000 Million + £1,567.4500 Million = £14,754.948 Million

£14,754.948 Million = £14.754948 Billion

On another way of looking at it, is in the 31 days in Dec 2023, HM Government borrowed:- £475.96606451612903225806451612903 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 2028 to 2053. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……

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