UK government raises £7 billion
UK government Debt Management Office (DMO) has this evening confirmed the biggest ever sale of sovereign debt to carried-out through a syndicate of UK banks with over £7 billion raised for the UK coffers. Initially there were plans to raise between £3 billion and £5 billion but due to significant interest from pension funds, insurance companies and fund managers this figure was increased to £7 billion.
With 94% of the issue taken up by UK-based investment companies the balance of 6% was taken up by overseas investors. The 25 year gilt carries a 4.5% coupon and is in stark contrast to the last UK government gilt sale which flopped. This is yet another sign that the UK economy is starting to improve and investors are more than happy to invest in UK sovereign debt despite the fact that the government has built up a £1 trillion "overdraft".
While the £7 billion will be well received by the UK Treasury it is merely a dot in the ocean although it will certainly help in the short-term. The only real way for the UK government to refinance and pay down their debt is to increase taxes and reduce expenditure in the public sector, something which is very much at the forefront of voter's minds as we approach the next general election.
Share this..
Related stories
Alex Salmond hits more turbulence with local income tax project
Alex Salmond's flagship policy of a local income tax in Scotland has come under further pressure with a number of new organisations appearing with severe criticism for the idea. The likes of the Ministry of Defence and Help the Aged have stepped forward with a number of queries and suggestions as to why the local income tax plan will not work. Aside from the legality of the plan there are grave co...
Read More£15 Million For Your Own Tax Haven
In a move, the like of which has not been seen for many years, one of the eight inhabited Channel Islands is being put up for sale at a price of £15 million. The owners of Herm, Pennie and Adrian Heyworth, took over the running of the island from Pennie's father but they have now decided to call it a day. In common with other Channel Island residents, the new owners of the Herm lease would on...
Read MoreAlistair Darling wins tax battle with Gordon Brown
Gordon Brown has been forced into an embarrassing climb down after Alistair Darling won the battle to maintain pooled inheritance tax at the next budget. It is believed the Gordon Brown has been placing pressure on Alistair Darling to completely remove inheritance tax and use this as a way to polarise voters and suggest that David Cameron is "looking after his friends". So has this affair backfire...
Read MoreCashback Cards – Earn up to £130 per Year
Research from Defaqto has revealed that consumers who spend over £500 per month on a credit card could be in line get earn up to £131 a year back in cashback. The demand for cashback cards has increased, and this has led to double the amount available on the market now than that of two years ago. Consumer demand has been the driving force behind this increase, which now sees 22 cards availabl...
Read MoreConsumers told to take stock following tax changes
Consumers should take stock of their tax burden following a mixed bag from new chancellor Alistair Darling.That is the message from a senior tax partner at Grant Thornton, Mike Warburton, who says that the cumulative effect of the Budget is to add £1.8 billion to the collective wallet.Mr Warburton told BBC Radio 5 Live's Wake Up To Money that while overall the Budget was "neutral", it was importa...
Read More