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Ed Balls MP, Labour’s Shadow Chancellor, said:
“This is a humiliating defeat for David Cameron which shows how weak and out of touch he has become. The Prime Minister wanted to say the EU budget should rise in line with inflation, but has been forced by Labour MPs and his own backbenchers to seek a real terms cut.
“At a time when schools and police budgets are facing deep cuts at home, it cannot be right that the EU budget should rise in line with inflation. We need a real terms cut and reform of the EU budget, but David Cameron is too weak and has failed to build the alliances needed to deliver it.
“David Cameron has failed to convince his own backbenchers, just as he is failing to convince other European leaders.”
Douglas Alexander MP, Labour’s Shadow Foreign Secretary, said:
“David Cameron can't even convince his own backbenchers he has the right approach to Europe. He is out of touch at home and out of his depth abroad. He's overseeing a shambles not a strategy.
“When governments across Europe are having to cut back spending, we don't think Europe should be exempt from this challenge.
“Europe must learn to do better with less and that is why we voted for a real terms cut.”