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. Another deficit month, thus to bridge the gap, needs to borrow on the bond market.

In November 2014, 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury :-

20-Nov-2014 0 5/8% Index-linked Treasury Gilt 2042  £3,951.9800 Million
13-Nov-2014 2¾% Treasury Gilt 2024  £3,299.9600 Million
04-Nov-2014 0½% Index-linked Treasury Gilt 2050  £869.9250 Million

When you add the cash raised:-

∑(£3,951.9800 Million + £3,299.9600 Million + £869.9250 Million) = £8,121.87 million

£8,121.87 million = £8.121 Billion

On another way of looking at it, is in the 30 days in November, HM Government borrowed:-

£270 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 bond mature 2024, 2042 and 2050. All long term borrowings, we are mortgaging our futures, but at least “we are in it together…”