MEPs reject European Union budget cuts

Members of the European Parliament have voted to reject cuts to the European Union agreed last month, which would have been the first ever in its history. The agreement was seen as a victory for Prime Minister David Cameron.

National governments will now be required to pay £14bn extra this year with the UK's contributions increasing by £1.7bn.

"The European Parliament cannot accept the proposal from the member states without the fulfilment of certain essential conditions," said socialist Martin Schulz, the speaker of the EU assembly.