HM Government February 2024

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 Feb 2024, 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” 8 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

28-Feb-2024 4% Treasury Gilt 2031 £4,000.0000 Million
27-Feb-2024 0 1/8% Index-linked Treasury Gilt 2039 3 months £900.0000 Million
21-Feb-2024 4½% Treasury Gilt 2028 £4,999.9980 Million
20-Feb-2024 4% Treasury Gilt 2063 £2,138.4990 Million
14-Feb-2024 4 5/8% Treasury Gilt 2034 £3,750.0000 Million
13-Feb-2024 0¾% Index-linked Treasury Gilt 2033 3 months £1,814.4500 Million
07-Feb-2024 3¾% Treasury Gilt 2027 £4,000.0000 Million
06-Feb-2024 1½% Green Gilt 2053 £2,500.0000 Million

£4,000.0000 Million + £900.0000 Million + £4,999.9980 Million + £2,138.4990 Million + £3,750.0000 Million + £1,814.4500 Million + £4,000.0000 Million + £2,500.0000 Million = 24,102.947 Million

£24,102.947 Million = £24.102947 Billion

On another way of looking at it, is in the 29 days in Feb 2024, HM Government borrowed:- £831.13610344827586206896551724138 Million each day for the 29 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 2027 to 2063. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……

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