No cut to EU budget contributions

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An amendment by Douglas Carswell, calling for a reduction in how much the UK gives to the EU, was defeated by 252 votes to 42 - a Government majority of 210.

Tory MPs lined up to criticise controversial moves in Brussels to increase the multibillion-pound euro-budget by nearly 6% next year.

Economic Secretary to the Treasury Justine Greening said 2011 could not be "business as usual" for the budget at a time of economic austerity in Europe. She said it was no longer tenable for the budget to continue to grow while member states face severe spending cuts.

The minister was urged to follow in the footsteps of former Prime Minister Margaret Thatcher when she goes to Brussels on Thursday and say "No. No. No".

Ms Greening said the Government accepted an amendment by Tory Bill Cash (Stone), chairman of the Commons European Scrutiny Committee, calling on the Government "to reject European Parliament proposals to increase the budget".

She said: "We believe there is no justification for an increase in the EU's budget of nearly 6%. As we have heard when countries across Europe are taking steps to ensure fiscal consolidation there is a strong case for the EU to follow suit."

They claimed that at a time of severe economic uncertainty, and when the UK was facing deep cuts to public spending, such a rise could not be justified.

In a three-hour Commons debate, MPs attacked the proposed increase of 5.9% taking the budget up to £114 billion for 2011. It will be voted on by MEPs next week.

Labour said the debate showed the eurosceptics were "alive and well" in the Tory Party.