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."