Government loses vote on EU budget

[dutchman]

The government has been defeated in Parliament over its negotiating position on the EU budget.

Rebel Tory MPs joined with Labour and other parties to pass an amendment calling for a real-terms cut in spending between 2014 and 2020.

The coalition says it must be frozen in real terms as a minimum.

Although the vote is not binding on ministers, it is a blow to David Cameron's authority on Europe ahead of key talks next month.

MPs from all parties said the proposed 5% budget increase for the period was unacceptable at a time of austerity across the continent, one likening it to "Alice in Wonderland" economics.

Conservative rebels said Parliament would send a clear message and strengthen Mr Cameron's hand if they backed a spending cut.

But government supporters said it would be "nigh on impossible" to negotiate a reduction in spending and urged MPs to back Mr Cameron's call for an inflation-linked rise as the minimum acceptable outcome.

In a heated Commons debate, one ex-minister accused rebels of "self indulgence" reminiscent of Tory splits over Europe in the 1990s.

At Prime Minister's Questions earlier, the prime minister said he would veto any deal on the budget if he could not get a good deal for Britain and accused Labour of opportunism.