UK taxpayers face £40bn bill for IMF

Britain’s exposure to the International Monetary Fund (IMF) could rise to up to £40 billion without a Commons vote, Treasury Chief Secretary Danny Alexander has said.

The UK’s IMF lending commitments are currently £29.4bn, but Prime Minister David Cameron has indicated his willingness to increase that figure under plans to significantly raise the support available to ailing economies.

Mr Alexander said the UK government could raise its contribution to £40bn without seeking MPs’ approval. Treasury sources said that amount had already been authorised by parliament.

“We have two sorts of money that we give to the IMF,” he said.

“There’s a £20bn ceiling for each, so there’s a maximum of £40bn that we can make available to the IMF.

“Currently, only about £5bn of that is actually in use, so we have the capacity to go up to that £40bn ceiling.”

Tory MPs have called for a Commons vote on any further extension of Britain’s commitments to the IMF, warning that it would effectively serve as an indirect bail-out of the debt-laden eurozone.

Shadow business secretary Chuka Umunna called for detail on the government’s plans, saying Mr Alexander’s comments were “not very clear”.