HM Government Borrowings June 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. 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” 6 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

26-Jun-2024 3¾% Treasury Gilt 2038 £3,000.0000 Million
25-Jun-2024 0¾% Index-linked Treasury Gilt 2033 3 months £1,802.6990 Million
18-Jun-2024 4 1/8% Treasury Gilt 2029 £4,999.9980 Million
12-Jun-2024 0 5/8% Index-linked Treasury Gilt 2045 3 months £1,071.0000 Million
05-Jun-2024 3¾% Treasury Gilt 2027 £4,999.9990 Million
04-Jun-2024 4% Treasury Gilt 2063 £2,000.0000 Million

£3,000.0000 Million + £1,802.6990 Million + £4,999.9980 Million + £1,071.0000 Million + £4,999.9990 Million + £2,000.0000 Million = £17,873.696 Million

£17,873.696 Million = £17.873696 Billion

On another way of looking at it, is in the 30 days in June 2024, HM Government borrowed:- £595.78986666666666666666666666667 million, each day for the 30 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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