Target pensions or welfare, not banks, IMF tells John Healey

City lobbyists have warned the government that higher taxes could force banks to throttle lending. Photograph: Bloomberg/Getty Images

The International Monetary Fund has urged John Healey to target savings on pensions and welfare, instead of taxing Britain’s banks at the budget later this month.

Helge Berger, deputy director of the IMF’s European department, was asked about bank taxes after the Guardian revealed Healey plans to tap the sector for additional revenue.