Business
Badenoch ‘worried’ UK may need IMF bailout
Kemi Badenoch has said she is “really worried” that the UK might be forced to embark on a 1976-style bailout from the International Monetary Fund.
The Conservative leader told BBC Newsnight that the UK could be forced to go “cap in hand” to the IMF unless the government delivers a plan for economic growth.
She made her remarks as she offered to work with Sir Keir Starmer “in the national interest” to cut welfare spending. She said welfare cuts and growth were needed to help the government out of a “doom loop” of rising taxes and precarious public finances.
A Labour Party source said Mrs Badenoch had a “brass neck” for offering such advice, after the Conservative government had “crashed the economy”.
The Labour government of the late prime minister Jim Callaghan was forced to apply for a $3.9bn (£2.9bn) emergency loan from the IMF during the 1976 sterling crisis.
That was seen as a seminal event in post war economic history which severely undermined the economic credibility of the Callaghan government.
Asked what made her think the UK is heading towards the need for an IMF bailout, Badenoch said: “A lot of the indicators are pointing in that direction.
“Many very well respected commentators and economists are saying this.”
A number of economists, mainly on the right, have in recent weeks raised the prospect of a version of the 1976 sterling crisis repeating itself. Other economists have dismissed this as hyperbole.
Andrew Sentance, a former member of the Bank of England Monetary Policy, wrote of “eerie parallels” between the position of the current chancellor and that of the late Denis Healey, chancellor during the 1976 sterling crisis.
But in an article for the Sun last month, Mr Sentance concluded: “The UK may not end up calling in the IMF.”
Governments borrow money from investors by selling bonds – which is a loan the government promises to pay back at the end of an agreed time. The yield on 30-year UK government bonds – which are known as gilts – has been rising for a number of months, although has now fallen back slightly.
Badenoch said there was a “crisis” in UK bond prices.
She pointed to UK borrowing costs hitting a 27-year high last week as “yet another indicator” and stressed “we are not growing enough”.
The Tory leader said: “Labour does not have any plan for growth,” adding: “They thought that as soon as they got into power, things would just work because they’re Labour and they believe in their own righteousness.
“That is not working – they need to get a plan to grow our economy, otherwise we will end up going to the IMF cap in hand.”
Dismissing a suggestion she was talking the country down, she claimed that doing nothing “would be a dereliction of duty on my part” and said was instead offering “an olive branch” to the prime minister to work with him.
“If we do get that sort of crisis because of their bad decisions, we’re all going to suffer,” she said.
“There is no benefit for the opposition party in a country that’s doing badly.
“We want our country to do well and we will work with the national interest to get that.”
The Conservatives have two key demands for working with Sir Keir, which are maintaining the two child benefit cap and slashing welfare, although the Tories did not support the government when Sir Keir was forced to water down the welfare Bill by a backbench rebellion in July.
“I’m sure that we’ll be able to come up with some suggestions, and then if we agree to that – it’s not a blank cheque – but if we can find some agreements, then yes, we’ll support it,” she said of the Bill.
In response to Badenoch’s comments, the Labour Party source said: “Kemi Badenoch’s Conservatives crashed the economy and sent mortgages spiralling. The brass neck Kemi has to think she can offer advice on the economy now is astonishing. The Tories haven’t listened and they haven’t learned.”
The US economy added 911,000 fewer jobs than initial estimates had suggested in the year through March, according to preliminary data from the Labor Department released on Tuesday.
The routine annual report – a revision to payrolls data – showed that the jobs market had been growing at a slower pace than previously thought at the end of the Biden administration and in the first months of the Trump administration.
Economists had anticipated a large downward revision, but the weaker-then-expected figure bolstered concerns about the health of the world’s largest economy.
The Federal Reserve is closely watching for signs of softness in the jobs market ahead of its meeting next week.
The US central bank is expected to lower its benchmark interest rate after holding rates steady so far this year, as it weighs signs of a slowdown in the jobs market against fears that US President Donald Trump’s tariffs might reignite inflation.
Last week, the Labor Department reported that employers added just 22,000 jobs in August, fewer than expected, while the unemployment rate ticked up from 4.2% to 4.3%. Tuesday’s data added to this picture of a slowing jobs market, reinforcing expectations that the US central bank will cut interest rates next week.
The job growth revisions come at a politically fraught time for the Bureau of Labor Statistics. Just weeks ago, President Trump responded to the signs of a slowdown by firing the head of the agency, accusing Erika McEntarfer, without evidence, of rigging the numbers to make him look bad.
Analysts say the more recent troubles in the job market are partly due to the president’s sweeping changes to tariff and immigration policy, which economists have consistently warned would hurt the economy.
But the Labor Department revisions, which encompass part of the Biden administration, could serve as a boost for President Trump, who has pushed back against claims that his policies are fuelling weakness in the jobs market.
“President Trump was right: Biden’s economy was a disaster and the BLS is broken,” White House press secretary Karoline Leavitt said in a statement on Tuesday.
She reiterated longstanding calls from the Trump administration for Jerome Powell, the chair of the Fed, to “cut the rates now”.
Wall Street largely looked past the jobs growth revisions, with the S&P 500 index holding steady in early trading on Tuesday. But investors remain on edge.
Fresh inflation data is set to be released on Thursday. That could bring fears of stagflation – a situation in which economic growth slows while consumer prices rise – to the forefront, said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Zaccarelli added that while a deteriorating jobs market “should make it easier for the Fed to cut rates this fall, it could also throw some cold water on the recent rally.”
The Labor Department’s revisions were broad-based, with particularly large adjustments in services sectors including leisure and hospitality.
“With services being the last bastion of employment growth, this does not bode well for the overall health of the labour market,” Bradley Saunders, North America economist at Capital Economics, said in a research note.
Faarea Masud & Connie BowkerBBC News
MitchumA well-known deodorant brand has apologised and recalled some of its roll-on products after customers were reportedly left with itchy, burning armpits.
Consumers of Mitchum’s 48-hour roll-on anti-perspirant and deodorant complained on social media how they experienced “agonising weeping spots”, redness and irritation after using the roll-ons.
Posting on TikTok, one customer claimed they wanted to “rip my armpits out”, while another said her underarms felt like they were “on fire”.
The company said it was “truly sorry” and explained how a change in the manufacturing process had led to the 100ml batches sold in the UK, Ireland and South Africa being affected and recalled.
Hundreds have taken to sharing videos of their experience on social media, including a customer who described how she was left in agony because of “weeping spots” under her arm.
“I won’t be using any Mitchum products again because I’m not risking this happening again,” she said.
One woman said she was unable to sleep after applying the roll-on to her skin because the deodorant left her with “second degree chemical burns on my armpits”.
Another described her underarm skin as developing a pink rash which had “scabbed over”.
A Mitchum spokesperson said the brand was “truly sorry some of our customers have experienced temporary irritation.”
In a statement, the company said: “We want to reassure there has been no change to the formula of our products, but we have identified a change in the manufacturing process affecting one of our raw materials.
“This has impacted how the roll-on interacts with the skin of some users.”
It said the issue had since been “resolved” and it was working to “remove the small amount of product” left in shops.
“In addition, we have reverted to the original manufacturing process to ensure no other batches are affected”, the spokesperson said.
Mitchum advised all those affected to contact its customer services team so it could “make this right”.
The firm has issued a list of all the affected 100ml roll-on products. These are:
- Powder Fresh
- Shower Fresh
- Unscented
- Pure Fresh
- Flower Fresh
- Ice Fresh
- Clean Control
- Sport
Last Updated:
According to Forbes, his 2023 wealth is $1.8 billion. While smaller than Elon Musk or Mukesh Ambani, it’s a remarkable feat for a small country like Nepal
His business acumen led him to partner with global brands like Suzuki and Panasonic. (News18 Hindi)
In the heart of the Himalayas, Nepal’s only billionaire, has built a fortune of $1.8 billion (around Rs 15,000 crore), showcasing a remarkable journey of entrepreneurship.
At 69, Binod Chaudhary, chairman of Chaudhary Group (CG Corp Global), has built a formidable empire of 136 companies, from ‘Wai Wai’ noodles to Taj Hotels, spanning sectors like banking, hotels, FMCG, energy, education, and health.
Born into a Marwari family in Kathmandu, Chaudhary’s roots trace back to Rajasthan, India. His grandfather migrated to Nepal and laid the foundation of their business legacy. His father then opened Nepal’s first departmental store, a significant achievement at the time.
Although Chaudhary was expected to take over the family business, he initially aspired to become a chartered accountant and began his studies in India. However, he had to return home at the age of 18 due to his father’s illness, leaving his academic pursuits behind and entering the business world.
From Disco To ‘Wai Wai’
Chaudhary’s journey into entrepreneurship began with opening Nepal‘s most famous disco in Kathmandu in 1973, which quickly became a youth hotspot.
In 1984, Chaudhary launched ‘Wai Wai’ noodles, now a staple in kitchens across India and Nepal, especially loved by children and adults in North and Northeast India
His business acumen led him to partner with global brands like Suzuki and Panasonic, further bolstering his ventures.
Nabil Bank To Taj Hotels
In 1995, Binod Chaudhary made a strategic move by acquiring a controlling stake in Nabil Bank from the Dubai government, which has since become Nepal’s leading bank. His most successful endeavour, however, lies in the hospitality sector. Chaudhary Group boasts 143 hotels, including several 5-star establishments in collaboration with India’s renowned Taj Hotels, spread across Nepal, India, and Sri Lanka, epitomising luxury.
Empire Of 136 Companies
Chaudhary Group’s influence extends far beyond noodles and hotels. It encompasses sectors such as banking, real estate, telecom, energy, education, and health, with projects ranging from power initiatives in Nepal to electronics in India.
According to Forbes, Binod Chaudhary’s wealth in 2023 was $1.8 billion. Although this is modest compared to giants like Elon Musk ($247 billion) or Mukesh Ambani ($107.1 billion), it is a significant achievement for a small country like Nepal.
Bollywood Dreams, Tata-Mandela Inspiration
Chaudhary is an ardent fan of Bollywood, particularly of Amitabh Bachchan’s films. He draws inspiration from JRD Tata, who revolutionised Indian business, and Nelson Mandela, who demonstrated the power of change. Besides being a successful businessman, Chaudhary serves as a Member of Parliament in Nepal, adding another dimension to his illustrious career.
Sons Take The Helm
At 69, Binod Chaudhary has entrusted the future of Chaudhary Group to his three sons, Nirvan, Rahul, and Varun, who are poised to elevate the business further, ensuring the continued success of ‘Wai Wai’ and Taj Hotels.
September 09, 2025, 19:24 IST
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