HM Government Borrowings: October 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

Another deficit month, thus to bridge the gap, needs to borrow on the bond market in October 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” 10 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

31-Oct-2024 1½% Green Gilt 2053 £2,250.0000 Million
29-Oct-2024 4 1/8% Treasury Gilt 2029 £4,000.0000 Million
23-Oct-2024 3¾% Treasury Gilt 2027 £4,787.2730 Million
22-Oct-2024 0 5/8% Index-linked Treasury Gilt 2045 £1,084.8490 Million
16-Oct-2024 4% Treasury Gilt 2031 £4,374.9990 Million
15-Oct-2024 4 3/8% Treasury Gilt 2054 £2,812.4990 Million
09-Oct-2024 4¼% Treasury Gilt 2034 £3,768.7500 Million
08-Oct-2024 0 1/8% Index-linked Treasury Gilt 2039 £1,151.6210 Million
02-Oct-2024 4 1/8% Treasury Gilt 2029 £4,020.0000 Million
01-Oct-2024 4¾% Treasury Gilt 2043 £2,812.4980 Million

£2,250.0000 Million + £4,000.0000 Million + £4,787.2730 Million + £1,084.8490 Million + £4,374.9990 Million + £2,812.4990 Million + £3,768.7500 Million + £1,151.6210 Million + £4,020.0000 Million + £2,812.4980 Million = £31,062.49 Million

£31,062.49 Million = £31.062 Billion

On another way of looking at it, is in the 31 days October 2024, HM Government borrowed:- £1002.015774 Million (£1.002 Billion) 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……

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