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| George Osborne says 'real test' on EU budget to come | George Osborne says 'real test' on EU budget to come |
| (about 1 hour later) | |
| Chancellor George Osborne says that the "real test" of the government's authority will come when any proposed EU budget deal is put before MPs. | Chancellor George Osborne says that the "real test" of the government's authority will come when any proposed EU budget deal is put before MPs. |
| He spoke to the BBC after Labour backed Tory rebels to defeat the government and call for a real-terms cut in EU spending between 2014 and 2020. | He spoke to the BBC after Labour backed Tory rebels to defeat the government and call for a real-terms cut in EU spending between 2014 and 2020. |
| Mr Osborne said the government would only put to MPs any proposed deal which it thought was good for UK taxpayers. | Mr Osborne said the government would only put to MPs any proposed deal which it thought was good for UK taxpayers. |
| Labour described Wednesday's defeat as a humiliation for David Cameron. | Labour described Wednesday's defeat as a humiliation for David Cameron. |
| There's always a row in Europe over how much money should be spent and how it should be divided up. | |
| Remember that the EU is a club of 27 countries - all with different priorities. There are several who - like Britain - believe that since national governments are making cuts now, so too should the EU. | |
| Then there are those (many in eastern Europe) who want a larger EU budget that would focus on investment and help create growth. For those outraged by the idea that the EU should get more money - the Commission here in Brussels points out that Britain and others together took decisions that expanded the size of the EU and increased its powers. | |
| That costs more money. They also say that the EU is cheap. EU spending as a proportion of the size of its economy is a fraction of that of UK government expenditure. | |
| Others point out the benefits of membership of the club - most notably the single market which generates far more in terms of income for Britain each year than the treasury pays to Brussels. | |
| Such arguments don't sit well with many Eurosceptics, who believe the EU is a bureaucratic institution that bleeds money. | |
| It's a row not just in the UK, but across the continent - with a summit towards the end of the month at which all 27 have to agree. If they don't, the negotiations will be scuppered and Europe plunged into another crisis. | |
| But Mr Osborne accused the opposition of taking a step away from government by being opportunistic - saying they were making the same mistakes the Conservatives had in opposition after losing the 1997 election. | But Mr Osborne accused the opposition of taking a step away from government by being opportunistic - saying they were making the same mistakes the Conservatives had in opposition after losing the 1997 election. |
| Although Wednesday's vote was not binding, it was embarrassing for the Tory leader and has led to some comparing the splits on Europe with those suffered by John Major's government in the 1990s. | Although Wednesday's vote was not binding, it was embarrassing for the Tory leader and has led to some comparing the splits on Europe with those suffered by John Major's government in the 1990s. |
| The prime minister has said he would "at best" like to see the budget cut, and "at worst" seek to have it frozen. | The prime minister has said he would "at best" like to see the budget cut, and "at worst" seek to have it frozen. |
| The budget amendment, passed by 307 votes to 294, comes ahead of key talks next month. | The budget amendment, passed by 307 votes to 294, comes ahead of key talks next month. |
| The defeat, the most significant since the coalition came to power in May 2010, came despite efforts by ministers to woo rebels and Mr Cameron earlier saying he would veto any budget deal that was not good for Britain. | The defeat, the most significant since the coalition came to power in May 2010, came despite efforts by ministers to woo rebels and Mr Cameron earlier saying he would veto any budget deal that was not good for Britain. |
| The rebel amendment was passed after a stormy debate in Commons on the 27-member union's next seven-year budget and UK contributions. | The rebel amendment was passed after a stormy debate in Commons on the 27-member union's next seven-year budget and UK contributions. |
| The European Commission's proposed budget for 2014-2020 would see a 5% increase in spending on the current seven-year period. | The European Commission's proposed budget for 2014-2020 would see a 5% increase in spending on the current seven-year period. |
| Government supporters said it would be "nigh on impossible" to negotiate a budget reduction given the lack of support among other EU nations and urged MPs to back Mr Cameron's call for an inflation-linked rise as the minimum acceptable outcome. | Government supporters said it would be "nigh on impossible" to negotiate a budget reduction given the lack of support among other EU nations and urged MPs to back Mr Cameron's call for an inflation-linked rise as the minimum acceptable outcome. |
| Mr Osborne told BBC Radio 4's Today programme "I want a cut in the EU budget, David Cameron wants a cut in the EU budget" and both were determined to "end the outrageous increases in European spending". | Mr Osborne told BBC Radio 4's Today programme "I want a cut in the EU budget, David Cameron wants a cut in the EU budget" and both were determined to "end the outrageous increases in European spending". |
| He refused to rule out a possible a cut in the EU's budget, saying it was the "beginning of a negotiation". | He refused to rule out a possible a cut in the EU's budget, saying it was the "beginning of a negotiation". |
| Election warning | Election warning |
| "We've got to listen to what the House of Commons said last night. We've got to listen to all Conservative MPs and coalition MPs," he added. | "We've got to listen to what the House of Commons said last night. We've got to listen to all Conservative MPs and coalition MPs," he added. |
| He emphasised too that the real decision for MPs would come - in around a year's time - when it came to ratifying any deal the government reaches in Brussels. | He emphasised too that the real decision for MPs would come - in around a year's time - when it came to ratifying any deal the government reaches in Brussels. |
| "If it comes to a vote, the House of Commons will face a choice - a deal or no deal," he said - adding that the alternative to ratifying a multi-year deal would be a series of annual negotiations. | "If it comes to a vote, the House of Commons will face a choice - a deal or no deal," he said - adding that the alternative to ratifying a multi-year deal would be a series of annual negotiations. |
| Former Conservative minister Sir Tony Baldry told the same programme: "If colleagues want the Conservative Party to be in government after the next general election then we're going to have to start supporting the prime minister when he goes to negotiate on behalf of Britain." | Former Conservative minister Sir Tony Baldry told the same programme: "If colleagues want the Conservative Party to be in government after the next general election then we're going to have to start supporting the prime minister when he goes to negotiate on behalf of Britain." |
| Asked if it was a re-run of the Major government, he said electors "do not vote for parties that they see as being divided", adding the only people who were "chuckling" as a result of the rebellion were Labour leader Ed Miliband and his party. | Asked if it was a re-run of the Major government, he said electors "do not vote for parties that they see as being divided", adding the only people who were "chuckling" as a result of the rebellion were Labour leader Ed Miliband and his party. |
| But Conservative rebels said that by backing the rebel amendment Parliament would be sending a clear message and strengthening Mr Cameron's negotiating hand. | But Conservative rebels said that by backing the rebel amendment Parliament would be sending a clear message and strengthening Mr Cameron's negotiating hand. |
| Sarah Wollaston MP, who was among the Conservative rebels, told BBC Radio 4's Today her party was "absolutely united on Europe" and Mr Cameron had been given a mandate to push for a "real cut". | Sarah Wollaston MP, who was among the Conservative rebels, told BBC Radio 4's Today her party was "absolutely united on Europe" and Mr Cameron had been given a mandate to push for a "real cut". |
| "I don't know a single Conservative MP who wanted to see an increase in our contributions by £300m a year, because that's what we mean by a real terms freeze. It's still, in fact, an increase from us." | "I don't know a single Conservative MP who wanted to see an increase in our contributions by £300m a year, because that's what we mean by a real terms freeze. It's still, in fact, an increase from us." |
| She said the vote was "about saying to the prime minister 'when you go into those negotiations, the country wants to see Europe get real'". She said she has "full confidence that our prime minister will deliver the very best deal he can". | She said the vote was "about saying to the prime minister 'when you go into those negotiations, the country wants to see Europe get real'". She said she has "full confidence that our prime minister will deliver the very best deal he can". |
| As the fall-out of the defeat continued, Deputy Prime Minister Nick Clegg - Lib Dem leader - said in a speech on Europe that Labour had been "dishonest" and "hypocritical" in changing its policy on the issue. | As the fall-out of the defeat continued, Deputy Prime Minister Nick Clegg - Lib Dem leader - said in a speech on Europe that Labour had been "dishonest" and "hypocritical" in changing its policy on the issue. |
| Labour criticism | Labour criticism |
| In the speech to the Chatham House international affairs think-tank, Mr Clegg said Labour was well aware there was "absolutely no prospect" of achieving a real-terms cut. | In the speech to the Chatham House international affairs think-tank, Mr Clegg said Labour was well aware there was "absolutely no prospect" of achieving a real-terms cut. |
| "Their change of heart is dishonest, it's hypocritical. And worst of all, Labour's plan would cost the taxpayer more, not less," he said. | "Their change of heart is dishonest, it's hypocritical. And worst of all, Labour's plan would cost the taxpayer more, not less," he said. |
| "Because in pushing a completely unrealistic position on the EU budget - one that is miles away from any other country's position - Labour would have absolutely no hope of getting a budget deal agreed." | "Because in pushing a completely unrealistic position on the EU budget - one that is miles away from any other country's position - Labour would have absolutely no hope of getting a budget deal agreed." |
| In his speech Clegg went on to say: "We've been waiting for years for the Labour Party to finally announce how they would cut spending. | In his speech Clegg went on to say: "We've been waiting for years for the Labour Party to finally announce how they would cut spending. |
| "Now they have finally come out in favour of cuts but in a way they know is undeliverable, and in a way that would hurt British taxpayers. And it turns out even their cuts cost money." | "Now they have finally come out in favour of cuts but in a way they know is undeliverable, and in a way that would hurt British taxpayers. And it turns out even their cuts cost money." |
| He also said that the Tory rebels have "absolutely no hope" of achieving their goal of forcing the EU to cut spending. | He also said that the Tory rebels have "absolutely no hope" of achieving their goal of forcing the EU to cut spending. |
| Shadow chancellor Ed Balls said there had been cross-party support for the idea of reducing EU expenditure at a time of austerity at home. | Shadow chancellor Ed Balls said there had been cross-party support for the idea of reducing EU expenditure at a time of austerity at home. |
| "It is not about party politics, it is about the national interest. Parliament has spoken and David Cameron has got to listen and deliver." | "It is not about party politics, it is about the national interest. Parliament has spoken and David Cameron has got to listen and deliver." |
| Shadow foreign secretary Douglas Alexander responded to the criticism of Labour's stance by saying its policy had been "consistent and clear" since July and it believed the "right approach for Britain, in fact the right approach for Europe, was to go for a real-terms cut". | Shadow foreign secretary Douglas Alexander responded to the criticism of Labour's stance by saying its policy had been "consistent and clear" since July and it believed the "right approach for Britain, in fact the right approach for Europe, was to go for a real-terms cut". |