Supplementary Estimate and Consolidated Fund (Appropriation) (No 3) Bill: or how the UK banks were rescued.
This note describes the immediate package of financial measures announced by the Government to stabilise the UK banking system at the height of the financial crisis. It relates to the rescue package for banks and not to the reforms to regulation which followed.
At the height of the financial crisis in 2008 the UK government enacted a rescue plan for its major banks that involved billions of pounds. Despite its constitutional role as the approver of spending, Parliament's immediate role was that of a spectator as successive statements of intent from government were announced but were, initially, not subject to debate or approval. This note highlights the key statement which set out the government's plan; the immedate cost of the bail out; and the conditions applied to the recipient banks.