Senior doctors in England to be balloted for strike action, says BMA

• The IMF says Britain should consider spending reforms rather than rely on higher taxes on banks.
• Unions and think tanks argue a higher bank surcharge could raise billions of pounds.
• Banks and business groups warn further sector-specific taxes could deter investment and weaken competitiveness.

The International Monetary Fund (IMF) has urged Britain to consider cutting public spending rather than raising taxes on banks, as the Government weighs options to strengthen its finances ahead of the October 28 budget.

Chancellor John Healey is reportedly considering reversing a reduction in the bank tax surcharge, but the IMF has suggested that spending reforms should play a greater role in balancing the public finances.