Britain's bail-out bill could hit £40bn as Osborne agrees to hand IMF another £10billion of our cash amid eurozone crisis

George Osborne is expected to plough another £10billion into the International Monetary Fund to help increase its resources, it emerged today.

The UK has already pledged £29.5bn to the Fund, £5.5bn of which has gone into the eurozone rescue scheme.

But it is thought the Chancellor will agree to add more money to help the IMF go from $400bn (£250bn) to around $1trillion.

The Government is able to commit the extra £10bn without a vote in Parliament but Mr Osborne said the UK will only dish out the extra cash if there were 'no new vehicles or funds specific to the eurozone'.

He also said there would be no deal unless all major non-eurozone countries signed up to give more.

All bar the U.S. after Treasury Secretary, Tim Geithner, said the U.S. would not pledge any more money until the eurozone added sufficient funds to its bail-out scheme.

It was a blow to IMF managing director Christine Lagarde who told The Telegraph last week that she was 'hopeful we will make progress' this week. Read More