David Cameron suffers Commons defeat on EU budget | Politics | The Guardian - 0 views
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David Cameron will face a battle to secure parliamentary backing for any EU budget deal that falls short of a real-terms cut after he suffered his first major Commons defeat on EU spending.
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The rebel amendment demanded that the next seven-year EU budget, which will run from 2014-2020, should be "reduced in real terms".
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The vote is not binding on the government. But No 10 sources made clear that the prime minister would lay down a "red line" at the EU summit, which opens on 22 November, to reject a planned 5% increase in the budget to ensure that it rises only in line with inflation.
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senior Tory Eurosceptics, who declined to support the rebels because they did not want to vote in the same lobby as Balls, said they would have no qualms about rebelling if Cameron refused to change his position at the summit.The prime minister's negotiating position would allow the EU budget to rise in line with inflation, which would lead to a 2% increase. The EU budget will have to be approved by MPs."When a budget deal is put to the Commons I will vote against it if there is any increase in EU spending," one former Tory cabinet minister said.
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Margaret Hodge, the Blairite former minister who chairs the Commons public accounts committee, was heard to describe the Labour vote as "hateful" as she prepared for a meeting of her committee. "I hate this vote. I do not want to do it. It's hateful," Hodge said. "I just think it's outrageous. I'm almost wanting to abstain."
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One former Labour cabinet minister said: "The danger is that we are stroking a dangerous underbelly of Euroscepticism." Another former cabinet minister said: "I suppose I can just about stomach having to vote for this if this is about scoring a tactical hit on the government. But if this marks a strategic shift in our position on Europe, then I would be very worried."Labour said its position was consistent. Its MPs voted in favour of a real-terms cut in the budget in July.
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The vote shows that the prime minister, who suffered a larger rebellion on a backbench motion on an EU referendum last year, is struggling to impose his authority on a sizeable chunk of his party.The warning from some Eurosceptics that they are keeping their powder dry until the substantial Commons vote to approve the eventual EU budget deal shows that he will have a tough hand to play at the summit.
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The prime minister will tell Angela Merkel at a meeting next week that he faces intense parliamentary pressure to freeze the EU budget. But No 10 expects the German chancellor to say that she faces a more important challenge – saving the euro.
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Nigel Farage, the leader of the UK Independence party, said: "I am delighted that the house voted with the country rather than with the government whips. It is outrageous that the prime minister was prepared to go to Brussels in November and argue for what he would call a freeze and the rest of us would call an increase in the amount of money removed from British taxpayers to be spent by the distant EU bureaucrats."