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

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

28-Aug-2024 0¾% Index-linked Treasury Gilt 2033 3 months 1,547.3750 Million
21-Aug-2024 3¾% Treasury Gilt 2027 4,000.9820 Million
13-Aug-2024 3¾% Treasury Gilt 2038 3,749.9970 Million
07-Aug-2024 4 1/8% Treasury Gilt 2029 4,020.2500 Million
06-Aug-2024 4¾% Treasury Gilt 2043 2,499.9990 Million

£1,547.3750 Million + £4,000.9820 Million + £3,749.9970 Million + £4,020.2500 Million + £2,499.9990 Million = £15,818.603 Million

£15,818.603 Million = £15.818603 Billion

On another way of looking at it, is in the 31 days in August 2024, HM Government borrowed:- £510.27751612903225806451612903226 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 2043. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“