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 July 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:-

30-Jul-2024 4¼% Treasury Gilt 2034 £4,254.8850 Million
24-Jul-2024 4 3/8% Treasury Gilt 2054 £2,575.2490 Million
23-Jul-2024 0 1/8% Index-linked Treasury Gilt 2039 3 months £1,239.3250 Million
17-Jul-2024 4 1/8% Treasury Gilt 2029 £4,000.0000 Million
16-Jul-2024 4¾% Treasury Gilt 2043 £2,812.4990 Million
11-Jul-2024 4% Treasury Gilt 2031 £3,750.0000 Million
02-Jul-2024 3¾% Treasury Gilt 2027 £4,110.0000 Million

£4,254.8850 Million + £2,575.2490 Million + £1,239.3250 Million + £4,000.0000 Million + £2,812.4990 Million + £3,750.0000 Million + £4,110.0000 Million = £22,741.958 Million

£22,741.958 Million = £22.741958 Billion

On another way of looking at it, is in the 31 days in July 2024, HM Government borrowed:- £733.61154838709677419354838709677 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 2027 to 2054. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“