Chancellor Criticised Over £10bn IMF Pledge
George Osborne is facing criticism from Parliament for announcing that Britain will commit another £10bn to the International Monetary Fund.
Both Conservative backbenchers and Labour MPs have accused the Chancellor of using more taxpayer's money to go towards further bailouts of the struggling eurozone.
They have also said he has dodged a potentially embarrassing parliamentary vote on the extra contribution.
If the increase had gone beyond £10bn, Mr Osborne would have required a fresh vote by MPs.
But the Chancellor has insisted the increased funding is vital to protect jobs and growth in this country.
Finance ministers and central bank governors struck the deal, which should boost the IMF's resources by $430bn, at a meeting in Washington.
Alongside the UK's increase, Japan is to contribute an extra $60bn, South Korea $15bn, Switzerland $10bn and Australia $7bn.
However, the US and Canada have refused to add any more into the pot.
Mr Osborne said: "The UK sees itself as part of solution to the challenges facing the global economy, not part of problem. We are helping to solve the global debt problem rather than adding to it.
"Jobs and growth in Britain depend on stable world economy. That needs a strong IMF.
"And because we have taken strong action to rescue our own economy, we can be one of many countries that can support the IMF, instead of being bailed out by the IMF."
Parliament has previously approved around £40bn in support for the IMF, of which about £30bn has already been committed.
Committing money does not mean it will necessarily be drawn against and, because it would be given in the form of a loan, it would not deplete public spending budgets.
Shadow chancellor Ed Balls accused Mr Osborne of signing up to a "sticking plaster" deal and "running scared" of parliamentary scrutiny.
"It is disappointing that the Chancellor has not taken the opportunity to press the wealthy eurozone countries to dig into their own pockets and establish a strong firewall of their own, before offering up more funding from Britain," he said.
"The IMF has a vital role to play in the global economy and should have the resources to do that job, but it should not be bailing out the eurozone when the euro area countries are not doing their own bit to help themselves."
Conservative Peter Bone branded the move "bonkers" and said money used to prop up the euro would be wasted.
"It seems to me it is all about bailing out the eurozone," he said.
"It should not be up to British taxpayers to shore up a doomed project that is for the benefit of our European colleagues."
However, other senior Conservative figures expressed support for Mr Osborne.
Treasury Select Committee chairman Andrew Tyrie said the increase was "essential".
"The IMF is the only fire-brigade available to the global economy," he said.
"It is vital that the IMF has the necessary tools to deal with the current eurozone crisis and the risks to wider global financial stability."
what do you think?
The entire reason for the existence of the IMF, is to trick nations and their populations into entering worse debt. IMF represents the 1%. Lagarde wants to rape the 99%. The better she is at this, the higher wage she will be paid. They are rightly hated in less developed countries they have 'helped.' Like a pack of rabid locusts, International bankers move from one country to another, leaving poverty, destruction, starvation, and death in their wake. Then the IMF go in and offer a 'solution' by loaning them their own money, at interest, and pressganging the population into debt slavery. They should collapse the entire monetary system. And tell the bankers to f"rk off. And never borrow money again. Countries can create their own currency as a sovereign nation. Reject the Euro. Withdraw from the Euro. Print Sovereign money without debt. Pay off [Countries's] bondholders with [Countries] money. Stop Fractional Reserve lending. Introduce laws to make sure Banks are only allowed to lend money they have. Its the only solution which does not involve a lifetime of slavery for the 99%, paying back counterfeit money, FOR INFINITY, so an elite few can buy their next carbon fibre superyacht. It was plain insanity for governments to borrow conterfeit money from the banks and pay them perpetual interest on it. And now these countries have been hijacked by the Bankers, and their willing accomplices, our own governments. Short of open revolution, there seems to be no solution to this 'Malum In Se'
Ronald George Halliday
robbed the poor box again george. how about using the money to help our own economy and create employment for a change. or is it an opener for more financial follies?
Yep, 600000000000000 aqillion quid to the overseas, we now have foodbanks for the needy and suicide and more debt that can handle, but dont worry, we are still helping overseas, you just hang onto that bridge edge a bit longer, britain is run by trolls and idiots.
Putting up £10billion to bail out the profligate free-spending tin pots of southern europe - what a joke!! Add that to cowering before the european court of human rights over this abu kitada (David Cameron this week actually referred to the decisions made by this jumped up unelected foreign body as 'the law' to be abided to by our government - utter travesty if ever!) and it makes 'in europe but not run by europe' the sickest joke of the lot. I've voted conservative to get labour out, and obviously we don't want those wasters back, but on this basis I shan't be voting tory again.
How can sending money out of the country help us!!!!!!
IMF - the loan shark of the global economy.
I thought this country was broke!...We are having our pensions cut, our taxes increased, our public services cut, all in the so called name of saving "OUR" country. If we can find "10 BILLION" pounds at the drop of a hat to give away, Why is this money not being used to prevent the cuts for our own people! Why must we (the british tax payer) suffer so that other countries can benefit? This govt. stinks and its about time it got its priorities right. it is the "British" govt......elected by the "British people"....so why is it not serving the "British" Public? Charity begins at home!!!!!!!....not with the IMF!!!!
Actually it's a coalition not elected by the people.
Labour were a pretty grim government, but compared to this bunch of vote riggers, they were angelic.
oh thats ok then if its only 10 billion we can do what we like ..............Beyond belief.God help us.
Has this government completely lost the plot. We live in a country where we have high cost of living people relying on food banks sky high petrol prices etc etc. Instead of pumping tax payers cash into the IMF why not put it back into the pockets of where it is genuinely needed....here to help ease the burden of those people who are in need of it. Seems to me that this waste of time government of ours just screws us all over to make themselves look good abroad
David Stephen Heiland
Why is other up to us to bail them out. we have businesses going to the wall and somepublic services being cut all because the money isn't there to support them. If i went to the bank for money cause my business was failing they wouldn't give me a penny so why should we be making sure the IMF has the tools to help countries who can't help themselves. I wouldn't deal with a company who couldn't pay their bills why is the eurozone any different. Giving them money so they can pay support their economy is the equivalent of giving away our products and services while we pay for it.
Well here we go again! As useual paying for everyone else. I thought that charity began at home. What about the unemployed here needing money, what about the homeless here needing a roof must I go on. WE do not live in a democracy and have not done so in a long long time.
if a ppolitician says it is a good thing for britain then you can be assured that it is not!! This is the "looking glass" world of politics in action...Meanwhile ,again it is the tax paying middle classes who are beggared
The euro is flawed, we all know that. But mr balls is flawed so who's going to listen to him!
Typical tory. The chancellor makes another error, and it's the oppositions fault. Make a comment on whether you think its a good or bad move, don't just divert away , and slag off others.
The Euro is doomed to certain failure. The failure was planned from the start so that Brussels could grab more power in the chaos that will follow the collapse of the Euro. This is throwing good money after bad.
So why has the US/Canada said No over this. As usual we are sucked in. The EU is a Bloodsucker.
Can anyone really say that a Chancellor from any other Party would have said "No!"? Of course not. The sad fact is that the people of this country who elect these cretins are of no interest to them other than as a seemingly bottomless pit of money to fund their grandoise ambitions to be seen as World Leaders. They all behave the same way once elected - remember the antics of Bliar and Brown - and it's about time a few of them were made accountable for their actions.
Let's stick to the matter in hand, and not keep digging into history, as most tories do. We all remember Thatcher, so to be bringing up "bliar", as you call him, is slightly hypocritical.Anyway, todays problem is the bumbling oaf, we call a chancellor.He's made another nail for the tory coffin, and long may the lid be sealed.
This comment has been removed for violations of our Terms and Conditions.
@ aa aa. You assume, wrongly, that I am a Tory. Neither Labour nor the Cons stand for election in the part of the United Kingdom where I live, so I am not swayed by either. Someone once said that if we don't know our history then we are doomed to repeat it and it worries me that so many people have very short memories and can't remember back a few short years to who got us into this mess in the first place. It seems that some think those were the good times! And yes, I would fully agree with you about Thatcher. My point was that all our ministers and governments behave in the same way with total disregard for what is in the interests of this country and it's people. And, believe me, that is the matter in hand.