UPDATE 2-UK to push ahead with bank "living wills" in Autumn

* UK wants 'wills' regardless of international deal

* Treasury working on timetables for individual banks

* Could expose banks to higher tax liabilities - FT (Writes through with Treasury official, background)

LONDON, Sept 15 (Reuters) - Britain hopes to make progress this autumn with plans to force banks to write "living wills" that would allow them to be wound down more easily in the event of another financial crisis, a Treasury official said.

Treasury minister Paul Myners told Reuters on Monday that Britain was determined to make sure big financial institutions write the so-called wills -- effectively plans to dismantle themselves in case of bankruptcy -- regardless of whether there is an international deal to bring them in. [ID:nLE116857]

The Treasury is working on timetables for individual banks but larger institutions may require longer timeframes and others could require restructuring.

"We are looking to progress in the autumn," the Treasury official said on Tuesday.

Finance minister Alistair Darling told the Financial Times newspaper that the proposal for banks to simplify their corporate structures and plan for dissolution will be included in new financial services legislation this Autumn.

"This is something you can't just allow to drag on, because you can see (the potential) situation where people say, `Yes, yes, we must do something about it, but not yet'," Darling was quoted as saying in Tuesday's Financial Times.

Britain holds large stakes in two of the country's biggest banks, Lloyds Banking Group (LLOY.L) and the Royal Bank of Scotland (RBS.L), after a sector bailout costing billions of pounds that followed last year's financial crisis.

The FT said the new proposals could expose banks to far higher tax liabilities, if banks are forced to overhaul structures that were designed for tax efficiency.

Darling said separately in the same interview that he had had enough of the "game" of seeing which senior minister would be the first to admit spending cuts will be needed to tackle Britain's ballooning deficit.

Prime Minister Gordon Brown will use the word "cuts" for the first time in a speech later on Tuesday when he addresses a trade union conference in Liverpool, according to the BBC.

Darling also signalled he would use his Autumn pre-budget statement to identify priority areas for spending, including infrastructure and education, with implied cuts elsewhere.

But chopping back government spending in the way envisaged by the opposition Conservatives -- way out in front in opinion polls ahead of an election due by next June -- would "undermine the fabric of the country", he was quoted by the FT as saying.

Echoing comments made on Tuesday by Business Secretary Peter Mandelson, Darling said deep spending cuts would "choke off the recovery before it has even had a chance to take hold". [ID:nLE100588] (Reporting by Sumeet Desai and John Stonestreet; Editing by Hans Peters)