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. https://www.dmo.gov.uk

https://dmo.gov.uk/data/pdfdatareport?reportCode=D2.1PROF7

Another deficit month, thus to bridge the gap, needs to borrow on the bond market in May 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” 7 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

29-May-2024 0 1/8% Index-linked Treasury Gilt 2039 3 months £1,000.0000 Million
22-May-2024 4 1/8% Treasury Gilt 2029 £4,567.7500 Million
21-May-2024 4¾% Treasury Gilt 2043 £2,812.5000 Million
15-May-2024 0 7/8% Green Gilt 2033 £3,000.0000 Million
14-May-2024 0 1/8% Index-linked Treasury Gilt 2073 3 months £622.8500 Million
08-May-2024 1½% Green Gilt 2053 £2,500.0000 Million
01-May-2024 4 5/8% Treasury Gilt 2034 £3,750.0000 Million

£1,000.0000 Million + £4,567.7500 Million + £2,812.5000 Million + £3,000.0000 Million + £622.8500 Million + £2,500.0000 Million + £3,750.0000 Million = £18,253.10 Million

£18,253.10 Million = £18.25310 Billion

On another way of looking at it, is in the 31 days in May 2024, HM Government borrowed:- £588.80967741935483870967741935484 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 2029 to 2053. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“