Displaying items by tag: bailout

The Government has announced a £600 million bailout for local councils, primarily to support elderly care, in response to financial challenges faced by town halls. This emergency funding aims to prevent service cuts and potential bankruptcies. Councils are directed to focus the funding on urgent needs and reduce non-essential expenditures such as consultancy fees and diversity projects. The move follows alerts from over 40 Conservative backbenchers about the risk of increased council tax and reduced services. Financial struggles have already led to bankruptcy declarations from councils like Birmingham, Nottingham, Thurrock, and Woking. A survey reveals that nearly 20% of council leaders in England anticipate needing to implement austerity measures within the next two years. The bailout includes £500 million specifically for social care, and councils will also see a 4% increase in their core spending power. Additionally, £3 million is allocated for flood defence in vulnerable areas. See

On 15 November, Pakistan reached an agreement with the International Monetary Fund (IMF) for the release of a $700 million tranche, part of a larger $3 billion bailout package agreed in July. This announcement constitutes a significant relief for the struggling economy, as Pakistan is facing a severe balance of payments crisis and dwindling foreign exchange reserves. The leader of the IMF team noted several causes for encouragement; he said that inflation is expected to decline over the coming months amid receding supply constraints and modest demand, together with aid from international partners, leading to improved economic confidence. However, he warned that Pakistan remains vulnerable to global risks like geopolitical tensions, commodity price fluctuations, and tightening global financial conditions. This agreement comes as Pakistan prepares for general elections in February 2024 and aims to stabilise its economy, which has been in free fall for years, leading to rampant inflation and widespread financial hardship.