Tory MPs fired a warning shot at George Osborne today over claims that he is poised to hand £10 billion to the International Monetary Fund.
Mark Pritchard, secretary of the 1922 Committee of backbenchers, warned of a revolt if such a sum were used to bail out crisis-hit eurozone countries.
“The Government is increasing Britain’s IMF contribution by the maximum it can get away with without the need for a new vote in Parliament,” he said. The Chancellor and Bank of England Governor Sir Mervyn King will be at Friday’s IMF meeting in Washington.
A Treasury spokesman said Britain would not bail out the euro, although it could provide funds to help countries.
“The UK is a longstanding supporter of the IMF. However, we been clear that there are strict conditions under which we would agree to an increase in resources.
“That’s why any deal on IMF resources has to be done at the global level, and obviously the IMF’s assessment of the resources it needs forms a part of that review”.
