UK could contribute up to £40bn to IMF

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 increase the support available to ailing economies.

Mr Alexander said the Government could raise its contribution to £40bn without seeking MPs’ approval.

Treasury sources said that amount had already been authorised by Parliament.

Speaking on BBC1’s Andrew Marr Show, Mr Alexander said: “We have two sorts of money that we give to the IMF.

“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 they would effectively serve as an indirect bailout of the debt-laden eurozone.

In July, 32 Conservative backbenchers defied the Government to vote with Labour against an increase in Britain’s contribution to the IMF.

Mr Alexander said: “No country in the global economy can be an island, we are in an enormously inter-dependent world. We have to play a role as a global leader, as one of the largest economies in the world.”

But Shadow Business Secretary Chuka Umunna, speaking on BBC1’s The Politics Show, called for detail on the Government’s plans, saying Mr Alexander’s comments were “not very clear”.