Britain wants cut in European Union's budget

LONDON (REUTERS) - Britain threatened on Thursday to veto any deal on the European Union's budget that would not be good for the British taxpayer, a day after a humiliating defeat in Parliament undermined Prime Minister David Cameron's authority.

The vote - Mr Cameron's first significant defeat in Parliament since taking power in 2010 - could strengthen his position at budget talks in Brussels this month, as he would be able to say his hands were tied by the British Parliament.

"We want a cut in the EU budget," Finance Minister George Osborne told BBC Radio 4. "We are at the beginning of a negotiation. Let us see where that negotiation leads."

The second most powerful man in the British government repeatedly refused to be drawn on whether he thought securing such a cut was possible or not.